Angel Oak Residence Loans is promoting off a key a part of its enterprise, the corporate stated Thursday.
In a press assertion, Angel Oak – an Atlanta-based firm that has specialised in lending to each certified and non-qualified debtors – stated it’s, “exiting its retail distribution functionality housed in Angel Oak Residence Loans” and “coming into right into a transaction with a number one mortgage lender and servicer.”
Moreover, Angel Oak stated the, “transaction contains an acquisition of Angel Oak Residence Loans’ brick-and-mortar gross sales pressure.”
However Angel Oak didn’t say who was shopping for the retail distribution division, and declined to reply questions.
Two sources acknowledged that CrossCountry Mortgage, which has aggressively expanded its firm over the previous few years – a lot to the chagrin of some rivals – could also be buying it. A spokesperson for the Cleveland-based firm neither confirmed nor denied the transfer, stating, “We do not touch upon rumors and hypothesis.”
The sale shines a highlight on a number of individually included corporations which might be brokering, lending, and securitizing mortgages to debtors in want of nonconventional loans. In addition to Angel Oak Residence Loans, there may be Angel Oak Mortgage, a publicly traded actual property funding firm.
“Angel Oak intends to concentrate on the non-QM residential mortgage sector by its wholesale and correspondent channels,” in accordance with Angel Oak’s assertion. “The transaction has zero impression on the wholesale non-QM originator Angel Oak Mortgage Options, Angel Oak Correspondent Lending or some other Angel Oak associates. Angel Oak Residence Loans will proceed to be part of Angel Oak Corporations publish transaction and can home the correspondent and client direct channels. Right now, Angel Oak can not remark additional.”
Unclear is how the sale will have an effect on staff of Angel Oak Residence Loans, which final month laid off 57 of its staff, or about 15% of its workforce. In accordance a narrative in Nationwide Mortgage Skilled, a little bit over half of the corporate’s employees have been mortgage originators.
Like many different mortgage corporations who’ve executed layoffs in latest months, Angel Oak Residence Loans blamed macroeconomic forces for the pink slips, which embody rising rates of interest, sustained inflation and client and investor pessimism. A spokesperson stated the layoffs have been to “handle by the headwinds at the moment dealing with the mortgage trade.”