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Q&A with Tom Hutchens of Angel Oak Mortgage Solutions

Tim Murphy, Publisher of The Mortgage Leader, discussed the impact of the gig economy, the non-qualified mortgage market, the return of common sense underwriting, millennials and more with Tom Hutchens, the Executive Vice President of Production at Angel Oak Mortgage Solutions. Hutchens has more than 18 years of experience leading sales for a wholesale and correspondent lending platform.

Murphy: The self-employed market has been a big driver for non-qualified mortgages (non-QM). There are about 57 million workers now in the gig economy—that’s 36% to 40% of people driving at least part of their income from a separate source. How has this impacted the non-QM market and what do you expect going forward?

Hutchens: The small business owner has been a huge piece of non-QM since we started this almost seven years ago in 2013. We didn’t start with a bank statement product, but we quickly added one based on the demand from the market and finding out which borrowers had been locked out of the market due to the financial crisis.

This product has been more than 50% of the non-QM production since non-QM really came to be. We don’t see that letting up. It’s just so much easier to be a part of the gig economy now than it was just five or 10 years ago, so we see that as a growing piece of the market and a big part of non-QM programs.

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