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Education and awareness drives non-qualified mortgage market


Why has the volume of non-QM originators increased? Tom Hutchens, executive vice president of Angel Oak Mortgage Solutions,  dissects and debunks what is most misunderstood about non-qualified mortgages in The Mortgage Leader.

Non-qualified mortgages doesn’t mean non-qualified borrowers. They don’t qualify for an agency loan, but they are very qualified borrowers. They have had a bad credit event, were out of work, or in some cases had medical bills they had to pay and that set them back. Agencies want the borrower to wait seven years from the credit event. With a non-QM loan, borrowers will qualify as soon as their record justifies extending a loan to them.”

Non-QM has greatly influenced the housing industry because realtors now are aware of the prevalence of non-QM products, allowing more deals to close and to assist in growing their businesses.

“There is five years of production history and non-QM loans perform better than Federal Housing Finance Authority loans. Fitch rated the actual underwriting performance of 11,000 non-QM loans–and only eight had gone into foreclosure. As originators become more aware of the performance, the desire to participate has grown,” Hutchens adds.

Angel Oak Mortgage Solutions Can Help

Angel Oak Mortgage Solutions works with third-party originators in more than 40 states and is the largest non-qualified mortgage lender in the U.S. The lender originated $2.2 billion in loans in 2018, more than double the $1 billion Angel Oak originated in 2017.

Angel Oak Mortgage Solutions stands out by being the #1 non-QM lender in the nation. With our guidance, you’ll be able to expand your product offering and grow your business with our tailored programs. We offer a number of alternative mortgage lending programs geared toward correspondent mortgage lenders.

Non-QM mortgage financing is growing, and many wholesale mortgage brokers and correspondent lenders are taking notice. Among correspondent lenders, of course, non-QM offers a great avenue for growing business origination volume across mortgage lending channels and providing opportunities for clients across a variety of risk profiles.

Non-QM correspondent mortgage lending offers considerable opportunity for correspondent lenders who are not yet partnered with an alternative mortgage financing firm. Those looking to grow their business should consider the unique opportunities non-QM mortgage financing programs can provide correspondent lenders. 

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Angel Oak Companies is an industry leader in delivering innovative mortgage credit solutions. Through our integrated platform, we deliver solutions across asset management, mortgage lending and capital markets.

Angel Oak Mortgage Solutions offers a breadth of alternative lending products to allow our clients to grow their business and better serve their customers. We re-connect qualified home buyers with the investor community to create a win/win/win for the borrower, originator and investor. As a highly entrepreneurial organization, we are able to quickly adapt to the needs of our clients and embrace a strong service-based culture.

Angel Oak Mortgage Solutions currently offers alternative correspondent mortgage lending services across Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, North Carolina, North Dakota, Oklahoma, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.