Angel Oak Mortgage Solutions has announced an expansion and improvement of its non-QM product offerings.

After pausing originations due to the COVID-19 outbreak, Angel Oak returned to the space more than a month ago with three product offerings, including a bank-statement program for self-employed borrowers, an investor cash flow (DSCR) product for property investors, and a platinum jumbo product. Each product has been improved and expanded:

Bank-statement loans

  • Addition of personal bank statement option to qualify along with business bank statements
  • Reduced pricing in all FICO and LTV buckets
  • Addition of lender-paid compensation
  • Credit scores starting at 660, LTCs to 85% with no mortgage insurance

Investor cash flow (DSCR)

  • No income is needed; qualify using the cash flow of the property
  • Addition of lender-paid compensation
  • Reduced pricing in all FICO and LTV buckets
  • Credit scores starting at 700, LTVs to 70%

Platinum jumbo

  • Reduced pricing in all FICO and LTV buckets
  • Addition of lender-paid compensation
  • Reduced credit event seasoning from 60 months to 48 months
  • Credit scores starting at 660; LTVs to 90% with no mortgage insurance

In addition, Angel Oak Capital Advisors has announced the completion of two non-QM securitizations since the COVID-19 outbreak began, totaling $876 million. The latest securitizations bring the company’s overall issuance since 2017 to $6.3 billion.

“The success of our recent securitizations demonstrates the power of the vertically integrated model we’ve created, providing investors with more transparency and confidence,” said Mike Fierman, co-CEO of Angel Oak Companies. “On the origination side, our belief in the demand for non-QM products has been confirmed by the incredible reception from originators. We have seen tremendous interest in our non-QM products even in this low-interest-rate environment. We anticipate that increased demand will continue as we make further improvements, and look to add new products over the next six to 121 months.”