As times change within the evolving technology space, every industry has a hand in keeping up and utilizing best practices for efficiency, lead generation and overall company growth. While the housing market has seen better days, there’s been a positive uptick in recent months with the new generation of homebuyers – purchasing in a non-traditional way – using financial technology, or fintech.
During the home-buying process, borrowers and lenders alike are turning to the latest fintech innovations to bolster their position in the housing market to pursue the best deals and to streamline the dreaded process of homebuying. According to National Mortgage News, fintech is becoming a must-have for mortgage lenders. And 69% of loans this year were made to millennials, up 64% since last year, in large part due to their embrace of fintech.
This disruption is challenging some long-standing industry norms, lenders, realtors and payments systems on the forefront of this trend, which stand to benefit from lower origination costs, shorter cycle times and a better, less stressful borrower experience.
Supply chain friction and costly loan quality and compliance efforts have contributed to a dramatic increase in loan origination costs. But mortgages are manufactured from the flow of data and funds, making them prime targets for digital automation. As a result, fintech companies have been heavily involved in the driving factor of digital mortgages – all while establishing a growing awareness amongst lenders.
ANGEL OAK MORTGAGE SOLUTIONS CAN HELP
Angel Oak Mortgage Solutions stands out by being the #1 non-QM lender in the nation as of last year. We offer correspondent alternative mortgage lending programs to help your borrowers who may not meet general agency financing guidelines. With our guidance, you’ll be able to expand your product offering and grow your business with our tailored programs that not only emphasize fintech but can help you get started on new fintech innovations. We offer a number of alternative mortgage lending programs geared toward correspondent mortgage lenders.
A non-qualified mortgage (non-QM) is any home loan that doesn’t comply with the Consumer Financial Protection Bureau’s existing rules on qualified mortgages (QM). Usually this type of correspondent mortgage loan accommodates people who are not able to prove they are capable of making the mortgage payments.
Just because it is a non-QM correspondent mortgage loan does not necessarily mean high risk or subprime mortgage risk, and in many cases these correspondent mortgage loans require a high FICO score but simply do not check all the boxes associated with a correspondent QM loan. The main difference between the two types of correspondent mortgage loans is that correspondent non-QM loans for mortgages are protected by the lender against any type of lawsuit should you become unable to afford the mortgage loan.
ABOUT ANGEL OAK MORTGAGE SOLUTIONS
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, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, North Carolina, Oklahoma, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.