After years of leading the resurgence in the non-qualified mortgage (non-QM) market, Angel Oak Mortgage Solutions LLC
has announced that it will increase its efforts in the non-QM correspondent lending space. Given Angel Oak Mortgage Solutions’ position as a leader in the non-QM market, and its alignment with affiliated company Angel Oak Capital Advisors LLC
, the company is uniquely positioned to lead the revival of correspondent lending in this space.
“From the underwriting, lending, and securitization processes, the Angel Oak family of companies has industry-leading experience in every aspect of the non-Agency market,” said Tom Hutchens, Senior Vice President of Sales and Marketing for Angel Oak Mortgage Solutions. “This distinct corporate structure, our years of experience with non-Agency products and our ability to securitize our production, make Angel Oak Mortgage Solutions an ideal partner for lenders seeking a non-Agency correspondent relationship.”
Before the 2008 financial crisis, non-agency loans comprised 30 to 40 percent of the total mortgage market. However, following the crisis, the non-QM market disappeared overnight. The result was that many creditworthy borrowers were unable to obtain a mortgage. Now responsible non-QM products are back and the new programs are being accepted as seen in the growing number of industry participants adopting non-agency products.
“Today, non-QM originations total roughly $20 billion per year, but we believe the non-QM market will grow to over $100 billion in the coming years,” said Hutchens. “We are seeing a lot of demand in the non-agency market, especially as more national lenders enter the space after seeing the value these products bring to the table. Angel Oak Mortgage Solutions is now prepared to fulfill this demand even better through correspondent relationships with regional and national lenders.”
In 2017, the Angel Oak lending entities originated $1.2 billion in non-QM loans
via its mortgage platform and anticipate that it will more than double this number in 2018. Even in the midst of an industrywide origination slump to start 2018, Angel Oak stood out from the pack
with a record first quarter seeing 62 percent growth in origination numbers compared to Q1 of 2017.