Easing the path for non-QM originators

by Ryan Smith16 Jul 2019

As non-QM products become more popular, Angel Oak Mortgage Solutions is rolling out initiatives to make the non-QM process less daunting for originators. The lender’s most recent innovation is a platform called QuickQual.

“That’s our proprietary automated underwriting engine,” said Tom Hutchens, executive vice president of production for Angel Oak. “It allows brokers to upload their Fannie Mae 3.2 file, reissue the credit report and get an immediate credit decision on our products.”

While many lenders utilize automated underwriting systems, QuickQual also features a personal connection, Hutchens said.

“Ours is really different because it ties into our people,” he said. “Every time (an originator) runs it, the decision is automatically sent to their account executive. Their account executive reviews it and contacts them with feedback on their loan. It’s not a technology that replaces people – it’s a technology that augments and speeds up the process. The broker gets an answer in seconds – and their account executive has the same information, so they can discuss the loan.”

That personal touch sets Angel Oak apart from many other non-QM lenders, Hutchens said.

“A number of others that we’ve seen send you to a third-party website with an off-the-shelf product,” he said. “In fact, they’re often using the same vendor, so it looks exactly the same from lender to lender. Ours uses technology to enhance the people and the process part of our business.”

The system is part of Angel Oak’s ongoing effort to make non-QM origination as painless as possible, Hutchens said.

“What QuickQual supports is ease of origination,” he said. “Originators and brokers are used to using an AUS. More importantly, it gives them confidence that they have a deal much earlier in the process – immediately.”

Hutchens said that originators are already enthusiastic about the new system.

“It’s still new, but the feedback from our clients and account executives has been extremely positive,” he said. “It’s accomplishing what we want to accomplish: efficiency and confidence. That continues to be our focus. Everything that we’re doing is to make things faster and easier for the originator. This is a really, really big step in that direction.”