Angel Oak keeps setting the bar

by Ryan Smith10 Apr 2019

Angel Oak Mortgage Solutions continues to thrive even in an increasingly complex market. The company originated $563 million in loans in the first quarter of 2019 – a huge increase from the same period last year.

“We finished the first quarter with really solid numbers,” said Tom Hutchens, executive vice president of production for Angel Oak. “We were up 82% over the same quarter last year. In what we can all agree is a challenging mortgage market, we continue to grow at a record pace.”

Hutchens said that the non-QM space – for years a tiny corner of the mortgage market – continues to grow as originators become more aware of the advantages of non-QM.

  • To hear more about the growth of non-QM loans and how these types of loans have been expanding across the mortgage industry, listen to this podcast interview with Hutchens and David Lykken of Lykken on Lending. Listen to the podcast here.

“The need has always been there in the market, but the awareness of that need is what is fueling the growth,” he said. “There’s pent-up demand. These borrowers have been locked out post-crisis.”

Some originators, though, still shy away from non-QM – a diffidence that arises from lack of awareness about the product, Hutchens said.

“There’s still a perception that these loans are harder to originate,” he said. “That’s part of the awareness that we’re always talking to people about. If you’re doing a full-doc Fannie Mae loan, you have to get W2s and asset statements. The same amount of paperwork, the same process is required whether it’s a non-QM loan or an agency loan. The loans themselves aren’t any more difficult. And Angel Oak has really differentiated itself as being the easiest non-QM lender to work with.”