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Another View on 30-Year Fixed Mortgages and Correspondent Lending

Political and economic commentary surrounding even the best mortgage financing programs in the country have been sour for nearly a decade, despite deep advancements in the field and the empowering nature of mortgage loan programs for homebuyers. Experts for example have reported that rising interest rates would kill mortgage loan volumes, and that government reform in sponsored mortgage lending enterprises would effectively kill the traditional 30-year fixed rate mortgage loan. While this might have left wholesale mortgage lending brokers and correspondent mortgage lenders wondering what might happen to their businesses, it has done little to steer away demand from potential homebuyers and quash their desire to own a home. The myth and fear associated with the housing market crash and unreliability of home loans has been far exaggerated.

Instead, we have seen an increasing in applications across non-prime wholesale mortgage financing and alternative correspondent mortgage financing. By no means does it seem the 30-year fixed mortgage is becoming a thing of the past. In a recent article in National Mortgage News, Mat Ishbia, the United Wholesale Mortgage’s President and CEO confirmed the notion, saying, “The 30-year [conforming] fixed-rate mortgage isn’t going away anytime in the foreseeable future. There is less than a 1% chance”.

The 30-year mortgage, of course, was created in 1930 to provide liquidity to a stagnant housing market. In this post-depression era where the predominant alternative mortgage financing product was a short-term interest-only loan with balloon payments, the 30-year mortgage served to become and today remains the best mechanism for creating liquidity in the housing market and allowing more people to buy homes. This top mortgage financing expanded over the years, of course, giving rise to options in the wholesale and correspondent lending spaces.

A Boom in Non-QM Mortgage Correspondent Lending

It is common knowledge that since the Great Recession, mortgage lending volume across conventional fixed-rate mortgage financing wholesale has grown healthily. What is less known however is how the top non-prime mortgage lending programs have fared and how they have impacted the lives of credit-challenged borrowers. For credit-challenged buyers struggling to purchase homes following the 2008 financial crisis, we have seen a resurgence in interest in top non-qualified mortgage lending products across the wholesale and correspondent lending spaces.

Interest in non-prime wholesale mortgage financing and non-QM correspondent mortgage lending can come from multiple sources, including boomers who have singular credit incidences in the Great Recession, and the increasingly powerful millennial generation. After all, according to Real Estate Expert Steve Cook, “as millennials’ incomes improve, but barriers like student loan debt and marginal credit histories continue to keep thousands renting, demand is growing for an alternative to qualified mortgage loans.”

Many mortgage correspondent lenders, of course, are taking note of the trends in non-prime mortgage financing opportunities to grow their business. S&P Global Ratings recently predicted that the market for non-QM loans could double or even triple this year, as pent-up demand from underserved borrowers boils over. And while there may be concerns stemming from the Great Recession regarding the quality of these loans, alternative mortgage financing firms like Angel Oak Mortgage Solutions do a significant amount of due diligence to ensure they remain a responsible partner to both the end customers and their partnered correspondent lenders and mortgage brokers. Angel Oak Mortgage Solutions evaluates mortgage financing across non-prime opportunities through the lens of the ability to pay, providing a deeper look than credit scores and traditional determinations of creditworthiness developed and unevolved since the 1980’s.

Become A Correspondent Wholesale Non-Prime Mortgage Lending Partner

At Angel Oak Mortgage Solutions, we offer alternative mortgage lending wholesale programs to help non-prime borrowers who may not meet general Agency financing guidelines, and assist in expanding offerings across the wholesale correspondent lending market. We tailor correspondent packages to directly support correspondent lenders interested in our top non-prime mortgage loans, and believe correspondent lenders are an integral part of the wholesale alternative mortgage lending process.

Top wholesale non-prime mortgage lenders focus on the borrower’s ability to pay the mortgage financing product, allowing for a suite of correspondent lending solutions in the non-prime space to become available. Correspondent non-prime mortgage loans, self-employed mortgage loans, and even foreign national mortgage lending products are available through correspondent mortgage lending packages at Angel Oak Mortgage Solutions. For some correspondent lenders, this can greatly expand one’s capacity to serve the non-prime population and grow their businesses.

 Take a look at the Angel Oak Mortgage Solutions Correspondent Package:


About Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions offers non-Agency wholesale mortgage financing options, non-prime correspondent lending mortgage options, and specialized low-credit wholesale alternative mortgage solutions for brokers throughout the country. Our unique low-credit mortgage wholesale financing products for low credit consumers provides mortgage brokers the opportunity to grow their business even right after their clients experience a bankruptcy, default, or delinquency. We also provide correspondent lenders a new avenue to explore non-prime mortgage lending options specifically tailored toward the non-qualified correspondent lending market. Our streamlined application process carries a deep flexibility for alternative mortgage applicants, and the technology platform our wholesale alternative lending process is built upon allows for paperless submission and the ability to track loan status on the fly. In essence, our streamlined process was designed to serve the top mortgage lending specialists including mortgage brokers and correspondent lenders interested in non-prime mortgage wholesale by ensuring quick response times, dependable communication, and an incredible depth to our mortgage lending portfolio.

Angel Oak Mortgage Solutions is comprised of a team of experienced non-prime mortgage professionals who work to bring wholesale nonprime mortgage lending programs to help grow your mortgage origination and correspondent lending business. These non-prime mortgage financing programs have specially been designed for your clients whose circumstances may not meet standard Agency financing guidelines. We provide top alternative mortgage lending programs to brokers and correspondent lenders in more than thirty states and are proud to serve as your team of non-agency mortgage lending specialists.

Angel Oak Mortgage Solutions currently offers non-prime wholesale mortgage loans and correspondent lending programs across Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, New Jersey, New Mexico, Nevada, North Carolina, Oklahoma, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington and Wisconsin.