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Angel Oak Mortgage Solutions Announces Massive Layoffs

Mar 27, 2020
Photo credit: Getty Images/tadamichi

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.
 
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“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.
 
Earlier in the week, Flagstar Bancorp ceased funding non-QM loans, and Citadel Servicing Corporation, another top non-QM lender, said it was halting originations for 30 days.
 


 
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