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Just getting into non-QM? You’re behind the curve – but it’s not too late



 The word is out: non-qualified mortgages are taking off, signaling a new era for the industry. Proof is in the numbers. Angel Oak Companies, one of the biggest players in non-QM, hit a record $1.1 billion in volume during 2017 and expects to double its business in 2018. During the coming years, the non-QM market could reach $100 billion.

“We haven’t even scratched the surface – we are still in the infancy of the cycle, so to speak,” said Tom Hutchens, senior vice president of Angel Oak Mortgage Solutions. “I think 2018 is the year that production is going to continue to grow rapidly, and everyone is going to position themselves to begin the process of offering the programs and products. 2019 is when we’ll really start to see more exponential growth.”

Hutchens’ advice to originators: Get into non-QM right away if you haven’t yet.

“You’re already not an early adopter; you’re a later adopter,” he said. “If you look at the macro level, rates have gone up and the refinancing boom is over. To succeed in a purchase market, you have to have all the tools in your belt of available products, and that’s what we bring – more tools.”

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