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Angel Oak Home Loans Selling Retail Lending Business

David Krechevsky
Nov 10, 2022
Angel Oak Home Loans website

Non-QM lender selling ‘brick-and-mortar’ locations, staff to Cross Country Mortgage.

Non-QM lender Angel Oak Home Loans said Thursday it will exit its “brick-and-mortar” retail lending business.

The Atlanta-based lender said it is selling its retail lending business to a buyer it declined to disclose. It also did not disclose the financial terms of the transaction. Angel Oak executives were not available to comment.

NMP has learned that the company acquiring the retail lending business is CrossCountry Mortgage (CCM). A spokesperson for CCM did not immediately respond to a request for comment.

CrossCountry Mortgage is one of the nation’s largest retail mortgage lenders, with more than 8,000 employees operating more than 600 branches across all 50 states.

Angel Oak Home Loans provided a statement via email that said it is "exiting its retail distribution channel and divesting its retail distribution capabilities housed in Angel Oak Home Loans, entering into a transaction with a leading mortgage lender and servicer. The transaction includes an acquisition of Angel Oak Home Loans' brick-and-mortar retail offices and associated salesforce.”

The company did not say in the statement how many retail locations are included in the transaction, nor did it say how many people are employed by Angel Oak Home Loans.

In October, Angel Oak Home Loans laid off 57 employees, or about 15% of its staff. Based on that, the company had 380 employees before the cuts, including 200 mortgage loan originators, according to NMLS.

“Angel Oak intends to focus on the Non-QM residential mortgage sector through its wholesale and correspondent channels,” the company’s statement continued. “The transaction has zero impact on the wholesale Non-QM originator Angel Oak Mortgage Solutions, Angel Oak Correspondent Lending, or any other Angel Oak affiliates.”

It also said Angel Oak Home Loans "will continue to be a part of Angel Oak Companies" after the transaction is completed “and will house the Correspondent and Consumer Direct channels.”

The statement added that, “At this time, Angel Oak cannot comment further.” 

Angel Oak's business lines consist of affiliated but separate entities, with each entity managing its own balance sheet and financials. There is no "parent" company. The affiliates include: 

  • Angel Oak Home Loans: The retail lending division, which includes a correspondent and consumer direct channel. It is licensed in 45 states and the District of Columbia.
  • Angel Oak Mortgage Solutions: The wholesale non-QM provider.
  • Angel Oak Capital Advisors: The investment management and securitization arm.
  • Angel Oak Companies: A shared services company that provides operational and service support (such as accounting and human resources) for the affiliated companies.
  • Angel Oak Mortgage REIT Inc.: A publicly held real estate investment trust that focuses on acquiring and investing in first-lien Non-QM loans and other mortgage-related assets.

Angel Oak’s sale of its retail lending business follows last week’s announcement by Athas Capital Group Inc., a direct-lending platform for the Non-QM market, that it plans to shut down and lay off more than 200 employees.

Nov 10, 2022
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