Non-QM Recovering Faster Than Expected
After grinding nearly to a halt at the beginning of the COVID-19 pandemic, non-QM lending is beginning to gain steam again. In fact, according to Tom Hutchens, executive vice president of Angel Oak Mortgage Solutions, the rate at which non-QM is recovering is pretty impressive.
Angel Oak was one of many non-QM lenders that put a moratorium on originations at the start of the COVID-19 outbreak. Now that that hiatus is over, Hutchens said the appetite for non-QM still appears strong.
“We ended our non-QM pause a little over a month ago, and it’s amazing the progress we’ve made,” he said. “We’re literally making significant enhancements every week. The market is recovering that fast. Angel Oak put a securitization out there, and it received a AAA rating, so the investor appetite is still there. There are some challenges that weren’t there before COVID, but investors still understand the value of non-QM.”