From $600 billion in nonprime loans written in a single year during the run up to well under $1 billion a year at the bottom. Granted, much of that $600 billion was in loans that never should have been mad, but still there is plenty of room for growth today, even underwriting only good, smart loans.
“Nonprime is setting records every month simply because of the growth in awareness,” said Angel Oak Mortgage Solutions Senior Vice President of Sales and Marketing
Tom Hutchens. “Growth is strong today because there is pent up demand from people who were digging out or sitting on the sidelines,” he said.
“Originators need to know that this is a way for them to grow their business. If they are not providing these solutions to their real estate agents, someone else will. They can either be the provider of these non-agency programs or risk losing the relationships with their referral sources,” Hutchens said.
He said a lot of mortgage brokers are a little apprehensive the first time they work with Angel Oak on a nonprime loan, “but they give us a shot and then they say we did what we said we would do. We close loans quickly and we are here to stay. We believe the nonprime, non-agency market will continue to grow. Originators need to get to know this market and need to get to know Angel Oak. We are the experts and we understand this space.
“At the end of the day, borrowers thank their loan officers for making it possible for them to buy a house,” Hutchens said.
Dennis Colon, regional sales manager for Angel Oak, said he loves getting emails from brokers late at night. “If I get an email at 11:30, I get off on sending a reply at 11:40. No one can outwork me,” he said. Colon, based in Phoenix, spoke with Insurance Business America at the Rocky Mountain Mortgage Lenders Expo held outside of Denver in April.
Colon said brokers need to know that nonprime loans are easy to write and he encouraged brokers to “work your real estate contacts. We will make the process smooth. It will feel just like a conventional loan to brokers.”
In business, holding steady is seldom seen as the route to success. The name of the game is growth. In the mortgage business, nonprime is an area of rapid growth partly for the simple reason that the bottom fell out during the crash and nonprime lending pretty much started over with a baseline of almost zero.