Angel Oak Mortgage Solutions taps into HELOCs

Key Takeaways:

– Atlanta-based non-QM lender Angel Oak Mortgage Solutions is entering the HELOC market due to high equity levels.
– Angel Oak’s HELOC qualifies borrowers based on bank statements, rather than requiring a minimum of 20% equity.
– The bank-statement HELOC is available for self-employed borrowers with owner-occupied homes, second homes, or investment properties.
– The launch of the HELOC product reflects Angel Oak’s commitment to meeting the evolving needs of borrowers.
– Despite a decrease in overall HELOC loan originations, outstanding balances on HELOCs and debt linked to home equity products have increased.
– Angel Oak has a strong track record in non-QM originations, with $9.4 billion in volume since 2020 and $18.6 billion since its inception in 2013.
– The company expects further growth opportunities in 2024, with recent expansions of its team and product offerings.

HousingWire:

Atlanta-based nonqualified mortgage (non-QM) lender Angel Oak Mortgage Solutions is tapping into the home equity line of credit (HELOC) market amid elevated equity levels. 

Unlike traditional HELOCs that require a homeowner to have at least 20% equity in their home, Angel Oak’s HELOC qualifies borrowers based on trailing 12- or 24-month bank statements and provides a line of credit with no usage restrictions, the lender said.

Angel Oak’s bank-statement HELOC allows qualified, self-employed borrowers to leverage their home equity while maintaining their primary mortgage. Borrowers can qualify for this loan with owner-occupied homes, second homes or investment properties.

“Bringing our new bank statement HELOC product to the market is a testament to our dedication to meeting the evolving needs of borrowers nationwide,” Tom Hutchens, executive vice president of production for Angel Oak Mortgage Solutions, said in a statement. 

“The introduction of this product and the growth of our team position our firm to better support the originators and borrowers we serve while scaling our services to align with the momentum in the market.”

Angel Oak’s HELOC product launch comes amid the still high equity levels across the country.

While overall HELOC loan originations by count were down 7% in the third quarter of 2023 as interest rates spiked, the Federal Reserve reported that outstanding balances on HELOCs increased during this period to $349 billion, up $9 billion from the prior quarter. 

In addition, Fed data shows that outstanding debt linked to home equity products also increased in the third quarter to $501 billion, up 2.3% from $490 billion in the second quarter. 

Angel Oak has originated $9.4 billion in non-QM volume since 2020 and more than $18.6 billion in non-QM loans since the company’s inception in 2013, according to its release.

The non-QM lender expects more growth opportunities in 2024 with the expansion of its team and product offerings. Most recently, Angel Oak brought on six account executives to serve markets including California, Indiana and Rhode Island, the firm announced.

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Property Chomp’s Take:

is an important element in web development and plays a crucial role in creating visually appealing and organized websites. In this article, we will explore the use of

in the context of Angel Oak Mortgage Solutions’ entry into the home equity line of credit (HELOC) market.

Atlanta-based nonqualified mortgage lender, Angel Oak Mortgage Solutions, is capitalizing on the current high levels of equity by venturing into the HELOC market. Unlike traditional HELOCs that require a minimum of 20% equity, Angel Oak’s HELOC qualifies borrowers based on their trailing 12- or 24-month bank statements. This innovative approach allows borrowers to access a line of credit without any usage restrictions.

One of the standout features of Angel Oak’s bank-statement HELOC is its suitability for self-employed borrowers. This loan enables them to leverage their home equity while keeping their primary mortgage intact. Whether the property is owner-occupied, a second home, or an investment property, qualified borrowers can benefit from this flexible financing option.

Tom Hutchens, the executive vice president of production for Angel Oak Mortgage Solutions, emphasized the company’s commitment to meeting the evolving needs of borrowers nationwide through the introduction of the bank statement HELOC product. The launch of this product, coupled with the expansion of their team, enables Angel Oak to provide better support to originators and borrowers while aligning with the current market momentum.

Angel Oak’s entry into the HELOC market comes at a time when equity levels across the country remain high. Despite a 7% decline in HELOC loan originations in the third quarter of 2023 due to increased interest rates, the Federal Reserve reported an increase in outstanding balances on HELOCs to $349 billion. Furthermore, data from the Fed shows a 2.3% growth in outstanding debt linked to home equity products, reaching $501 billion in the third quarter.

With a track record of originating $9.4 billion in non-QM volume since 2020 and over $18.6 billion in non-QM loans since its inception in 2013, Angel Oak is well-positioned to seize growth opportunities in 2024. The recent addition of six account executives further strengthens the company’s market presence in states such as California, Indiana, and Rhode Island.

In conclusion, the use of

in web development allows for the creation of visually appealing and organized websites. Angel Oak Mortgage Solutions’ entry into the HELOC market demonstrates their commitment to meeting the evolving needs of borrowers. With their innovative bank statement HELOC product and expanding team, Angel Oak is poised for further growth and success in the coming year.

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