Angel Oak Layoffs Add To Growing List Of Non-QM Cuts

Angel Oak Mortgage Solutions has joined the growing ranks of Non-QM lenders that are trimming staff.

The company on Friday laid off 75 people, or about 20% of its staff, “due to the current economic environment that has challenged the entire mortgage market,” a company spokesman said in a statement Wednesday.

“The reduction was done to ensure that the company maintains the proper staffing level required to meet current and anticipated Non-QM demand,” the spokesman said.

According to a company spokesman the affected employees did not receive severance packages. The reductions were in operations and no account executives were let go, the spokesman said.

In August, Cypress Mortgage Capital, the Utah-based correspondent lending division of Celebrity Home Loans, closed after four years in business, following Sprout Mortgage, which shuttered its operations in July.

According to a former executive Sprout was averaging $380 million a month in loan volume before it abruptly shut down. 

The decision to close also cost more than 300 employees their jobs, a former employee said at the time.

The closure came just a few months after Sprout President Shea Pallante expressed confidence, telling National Mortgage Professional magazine in its April issue that he was bullish on the Non-QM market, and predicted it would be 10% of the overall mortgage market this year.