Angel Oak Home Loans Sent Pink Slips To 57 Employees On Friday After Sister Company Laid Off 75 Employees Two Weeks Ago
Angel Oak Companies instituted 57 layoffs at its retail mortgage company, Angel Oak Home Loans on Friday. Two weeks ago, the company cut 75 people from it’s workforce in its wholesale and correspondent business
The latest jobs cuts comprised of an additional 15% of the company’s workforce.
The spokesperson stated that the layoffs are to put the company in a better position in the mortgage industry:
The mortgage data platform Modex claims Angel Oak Home Loans originated $2.44 billion in the last12 months through 192 active loan officers and 45 branches. 85% of the company’s loan volume was made up of conventional loans. Of that, 54.1% were purchase transactions.
Last month, pink slips were given to 75 employees at sister company Angel Oak Mortgage Solutions. This has also affected roughly 20% of Angel Oak workforce. The company also blamed the current economic environment. Angel Oak Mortgage Solutions originated roughly $5 billion in volume between July 2021 and July 2022.
Angel Oak’s companies specialize in non-qualified mortgage (non-QM) loans. Non-QM loans are not government-backed loans. Therefore, they are also not eligible for purchase by Freddie Mac or Fannie Mae. As a result, they present a greater risk and typically come with higher interest rates.
Through its mortgage-backed securities conduit Angel Mortgage Trust, the company launched a total of six non-QM private-label securities (PLS) offerings involving about 5,000 loans valued at $2.5 billion as of mid-September.
With surging rates, non-QM lenders have struggled to sell their loans in the secondary market. Thus, this caused a liquidity problem. As a result, several non-QM competitors like First Guaranty Mortgage Corporation and Sprout Mortgage to abruptly shut down.