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Non-QM: The Correspondent Lending Mortgage Financing Product Making a Comeback

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, and those looking to grow their business should consider the unique opportunities non-QM mortgage financing programs can provide correspondent lenders.

Why Should Correspondent Lenders Consider Non-QM For Their Clientele?

In short, non-QM mortgage financing, even for the purposes of correspondent lending across mortgage financing channels, is about expanding opportunity. The reputation of the power of Non-QM mortgage lending across wholesale, retail, and correspondent lending channels is growing and people are realizing how top alternative mortgage financing options can provide a relatively safe and profitable channel of mutually-beneficial opportunities. for wholesale mortgage originators, mortgage brokers, correspondent lenders, and non-qualified home buyers.

Many non-QM borrowers are, by many qualifications, quite ready to handle a mortgage and have the ability to pay their mortgage loan products, should they receive one. In short, many non-QM borrowers simply suffer from the setup of the FICO credit scoring system and are otherwise fully qualified to obtain a mortgage loan. A full two-thirds of non-QM loan borrowers used some level of alternative or limited documentation, meaning their income, though valid and substantial, simply is not well-understood by FICO and the institutional lenders. Furthermore, though about one quarter of borrowers are ineligible for traditional mortgage financing due to low credit stemming from a prior credit event, these are oftentimes singular credit events and have little merit as to the creditworthiness of a borrower. In this environment, combatting risk across alternative mortgage financing is a very different business than it was before the housing crisis. Most wholesale alternative mortgage lenders are demonstrating good faith when determining a borrower’s ability to repay, even when Appendix Q requirements (debt and income requirements) are not being met.

Angel Oak Mortgage Solutions, Setting the Standard in Non-QM Correspondent Lending

Over the years, Angel Oak Mortgage Solutions positioned itself as the leader in non-QM lending. As appreciate as we are of what we have accomplished, there is still substantial potential to address further inefficiencies in the alternative mortgage lending market and in partnering with correspondent lenders across the country. By working with correspondent lenders interested in our non-QM mortgage financing portfolio, we believe we will be able to more effectively capture growing demand. Steven Schwalb, Managing Partner of Angel Oak Companies, commented “the non-QM market will grow from its current size of a few billion dollars per year to over $100 billion in the coming years.”

“Our lending growth reflects a new era in mortgage credit,” said Angel Oak Companies Managing Partner and co-CEO Mike Fierman. “The mortgage industry has excluded too many creditworthy borrowers for too long. However, in 2017 the industry finally started to embrace non-QM products in a big way. As we look ahead, a strong housing market and solid economic fundamentals will continue to drive demand for innovative mortgage products. The difference today is that everyone from borrowers to realtors to Wall Street now recognizes the quality of non-QM products from Angel Oak.”

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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 in 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.