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Alternative Mortgage Lending as a Contributor to Credit Easing

Recent events in credit easing and non-conforming products driving the change

In the aftermath of the subprime credit crisis, two large gaps were left in the consumer mortgage wholesale market that left subprime borrowers unable to obtain the non-qualified mortgage loans they needed in order to purchase a house. Good borrowers, or those who had the ability, means, and desire to pay off subprime residential mortgage loans, found that they were unable to access non-prime mortgage loans because of some minor blemishes or strikes on their non-conforming credit report.

Home values meanwhile are rising, leaving non-qualified mortgage unable to take part in growing their equity and instead pay high rents forced upon them in the landlord’s market. To help ease the transition and allow non-conforming mortgage borrowers to obtain homes, new requirement have been put into place regarding loan-to-value or debt-to-income, known as LTV and DTI, allowing non-prime home buyers to once again purchase. A small amount of credit easing alongside new requirements on down payments and income help non-prime homebuyers, through non-conforming mortgage products, drive a wave of change, safely increasing access to the rising housing market.

Angel Oak Mortgage Solutions developed non-prime wholesale mortgage products pursuing these market sectors knowing credit scores do not pay mortgages – stable incomes and stable employment do. Angel Oak Mortgage Solutions offers on that premise wholesale non-prime mortgage loans as a non-Agency mortgage wholesale originator. Angel Oak Mortgage Solutions also offers non-prime jumbo wholesale mortgages. Regulations require a 20% down payment from alt-A jumbo mortgage borrowers, giving non-prime residential mortgage borrowers the incentive to pay their mortgages. Without non-prime wholesale mortgage options, non-qualified mortgage borrowers would only have the option of paying high rents in the current landlord’s market. Angel Oak Mortgage Solutions, by offering non-qualified wholesale mortgages, helps put good people back into homeownership.

Non-qualified mortgage borrowers need not wait the customary five years or even seven years other non-Agency residential mortgage lenders may require after a foreclosure, bankruptcy, or short sale in order to qualify for an alt-A mortgage loan. With non-prime wholesale mortgage originators like Angel Oak Mortgage Solutions who offer new subprime wholesale mortgage lending products, credit risk from non-prime wholesale mortgage lending is mitigated. Angel Oak Mortgage Solutions is a wholesale residential non-qualified mortgage originator that looks for stable income and stable employment as qualifiers when providing non-prime wholesale mortgage financing.

Angel Oak Mortgage Solutions also offers alternative forms to prove your ability to pay a non-prime mortgage loan. For example, self-employed individuals can offer bank statements that show a steady flow of regular income that would allow them to repay a non-Agency residential mortgage loan. The bank statement program greatly assists non-prime mortgage borrowers with irregular or non-traditional forms of income to get the alt-A mortgage solutions they need.

The most popular wholesale mortgage product Angel Oak Mortgage Solutions offers it the non-prime wholesale mortgage program, allowing non-prime mortgage borrowers to use the middle credit score of the primary wage earner to determine non-prime mortgage qualification. By ignoring a secondary borrower’s credit, saves a lot of non-prime mortgage applicants from being outright rejected in the non-qualified mortgage application process.

Angel Oak Mortgage Solutions is bringing non-prime wholesale mortgage opportunity to many non-conforming mortgage seekers. By bringing renewed access to non-prime wholesale mortgage offerings in a more careful and nuanced way, Angel Oak Mortgage Solutions is bringing opportunity to non-prime mortgage clientele by exercising common sense while addressing the needs of the people.

Angel Oak Mortgage Solutions offers a number of non-prime wholesale mortgage solutions for low credit borrowers.