Angel Oak Home Loans said Thursday it will exit its brick-and-mortar retail lending business.
The Atlanta-based lender said it is selling its retail lending business to a buyer it declined to disclose.
It also did not disclose the financial terms of the transaction. Company executives were also not available to comment. However, industry insiders say the mystery buyer is Cross Country Mortgage. A spokesperson for CCM did not immediately respond to a request for comment.
Cross Country Mortgage is one of the nation’s largest retail mortgage lenders. It has more than 8,000 employees operating more than 600 branches across all 50 states.
The company provided a statement via email that said it is:
Exiting its retail distribution channel and divesting its retail distribution capabilities housed in Angel Oak Home Loans, entering into a transaction with a leading mortgage lender and servicer. The transaction includes an acquisition of Angel Oak Home Loans’ brick-and-mortar retail offices and associated salesforce.
The company did not say in the statement how many retail locations are included in the transaction, nor did it say how many people are employed by the company.
In October, A laid off 15% of its staff. Last year, the company had 380 employees including 200 mortgage loan originators.
The company’s business lines consist of affiliated but separate entities. Each of these entities manages its own balance sheet and financials. There is no “parent” company. The affiliates also include:
- Angel Oak Home Loans: The retail lending division, which includes a correspondent and consumer direct channel. The company is licensed in 45 states and DC.
- Angel Oak Mortgage Solutions: The wholesale non-QM provider.
- Angel Oak Capital Advisors: The investment management and securitization arm.
- Angel Oak Companies: A shared services company providing operational and service support for the affiliated companies.
- Angel Oak Mortgage REIT Inc.: A publicly held real estate investment trust focusing on investing in first-lien loans.
The company’s sale of its retail lending business follows last week’s announcement by Athas Capital Group Inc. Athas plans to shut down and lay off more than 200 employees.