According to a report by Bloomberg
, non-QM specialist Angel Oak Mortgage Solutions (AOMS) has cut nearly 70 percent of its workforce as the COVID-19 pandemic further impacts the housing sector. Sreeni Prabhu, co-chief executive officer of Angel Oak Mortgage Solutions’ parent company, Angel Oak Companies, announced that AOMS dismissed 200 of its 275 employees amid the Coronavirus pandemic.
“The world has dramatically changed,” Prabhu told Bloomberg. “We have to slow down and re-underwrite in the new world that we’re in. That’s going to take some time.”
Angel Oak Companies announced that it closed 2019 with more than $17 billion in gross assets
under management and six non-QM securitizations, totaling approximately $3.1 billion, up from roughly $2 billion in 2018. Meanwhile, Angel Oak Mortgage Solutions funded approximately $3.3 billion in non-QM loans in 2019.
A majority of non-QM borrowers are self-employed, and as the Coronavirus pandemic grips the nation, the U.S. Labor Department announced that 3,283,000 Americans filed for unemployment last week
as a result of the pandemic, an increase of 3,001,000 from the previous week's revised level.