[pdf-embedder url=”https://usaherald.com/wp-content/uploads/2022/08/Angel-Oak-SEC-Action.pdf” title=”Angel Oak – SEC Action”]
If these allegations are true, they suggest that Angel Oak was not being truthful with its investors about the performance of its securities offering. This could potentially result in serious financial losses for those who invested in the offering.
Ashish Negandhi, a senior portfolio manager at Angel Oak, was well aware of the potential damage to the company’s financial health and reputation that could result from breaching an early amortization trigger on a securitization. With delinquency rates on the rise, there was a real risk of this happening.
To prevent this from happening, Negandhi approved the use of LIP account funds to bring specific delinquent mortgage loans up to date. Unfortunately, he failed to ensure accurate information about the delinquency rates or the securitization’s compliance with the early amortization trigger was disclosed to noteholders. As a result, Angel Oak ultimately suffered significant financial and reputational harm.
