MReport February 2020

TheMReport — News and strategies for the evolving mortgage marketplace.

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M R EP O RT | 5 MTECH The mortgage lending industry has seen significant growth in the number of mortgage brokers since the financial crisis. With this growth, lenders who utilize these brokers as TPOs have to ensure that the brokers are properly vetted and qualified. Overall, the broker application process can be complex and may include the review of multiple data points before a broker can become approved and begin submitting loans. Vendorly's TPO oversight program helps an organization's internal risk and broker approval department to automate and streamline the broker approval process with the use of an elec- tronic broker questionnaire pack- age that is sent and tracked from the Vendorly platform. "Vendorly created this service based on our deep understand- ing of the mortgage process to better assist our clients in the mortgage origination space," said Steve Greenfield, CMB, Director of Operations, Vendorly. "Understanding the risks of the organizations you are doing business with is critical to mak- ing optimal risk-based decisions when working with the broker community. Each lender may have different TPO approval re- quirements, and our approach to the TPO vetting process is cus- tomizable to our clients' needs." "The Vendorly TPO oversight program further strengthens Altisource's mortgage offering by addressing a significant area of growth in mortgage lending, spe- cifically the independent mortgage broker community," said Justin Vedder, SVP, Altisource. "Our clients can turn to Altisource as their provider in this market to help fulfill their mortgage needs." Angel Oak Puts Focus on Leveraging Technology THE COMPANY COMPLETED SIX NON-QM SECURITIZATIONS IN 2019, TOTALING AROUND $3.1 BILLION. A ngel Oak Companies announces another year of growth highlighted by its gross assets under manage- ment (AUM) surpassing $17 billion. The firm also completed a record six non-QM securitiza- tions in 2019 totaling approxi- mately $3.1 billion, exceeding the volume in 2018 by approximately $2 billion. Angel Oak plans to further integrate a data-driven, analytical approach and leverage its exper- tise and technology to provide best-in-class service across its entire platform. "People want to invest with us because of our vertical integra- tion, which allows us to control credit and growth thoughtfully," said Sreeni Prabhu, co-CEO and Chief Investment Officer at Angel Oak Companies. "We're proud of what we have built, and we see a bright future ahead as we tap into our information sources and data to improve our overall business and better serve investors." Angel Oak's mortgage platform, led by Angel Oak Mortgage Solutions and Angel Oak Home Loans, funded a company record $3.3 billion in non-qualified mortgages in 2019, a 52% increase in volume compared to 2018. In Q 4 of 2019 alone, the company funded over $1.1 billion in non-QM, surpass- ing the volume in Q 4 of 2018 by 67%. In 2020, Angel Oak an- ticipates funding over $8 billion overall in residential mortgages. Angel Oak credits its customer service and efficient integra- tion of technology, such as the MyHomeLoan Mortgage App and QuickQual tool, as cata- lysts for its rapid growth in the lending channels last year. Angel Oak has become one of the largest servicers of non-qualified mortgages and manages $4.4 bil- lion of servicing assets. "As established leaders in the non-QM space, we are always looking to innovate and adapt to better serve our investors and customers," said Mike Fierman, managing partner and co-CEO of Angel Oak Companies. "We are uniquely positioned to capital- ize on this continually growing market. Incorporating a more analytical and tech-led approach will help us strategically expand and continue to originate healthy loans." Angel Oak also continues to enhance its environmental, social and governance (ESG) investment approach as it more formally incorporates ESG factors into its public and private strategies. Additionally, the firm launched its first closed-end fund, Angel Oak Financial Strategies Income Term Trust (NYSE: FINS), and celebrat- ed with a bell-ringing at the New York Stock Exchange in June. To accompany its record growth, Angel Oak Companies hired 63 people in 2019, increas- ing its total head count to 711. The lending units improved and expanded the firm's Dallas facility, tripling its square footage to accommodate more than 100 staff members. The firm also moved its Atlanta-based invest- ment management headquarters into a larger, LEED-certified office space in June. Angel Oak Companies re- ceived eight industry awards in 2019, four of which commend employees ranking in the top tier of their respective fields, and four of which highlight the company's non-QM lending leadership, company culture, and pacesetting corporate growth. Zillow Expands Service into 23rd Market ZILLOW OFFERS NOW AVAILABLE IN TUCSON; PLANS TO EXPAND INTO CINCINNATI; JACKSONVILLE, FLORIDA; AND OKLAHOMA CITY. Z illow announced Monday that Zillow Offers—an appli- cation where consumers can buy or sell their homes directly to Zillow—has expanded to Arizona and is now available in Tucson. The service is also available in Maricopa County near the Phoenix metro—the first Zillow Offers loca- tion launched in April 2018. "There are so many stressful aspects of selling a home today, and we are giving sellers a different way to sell to avoid those," said Zillow President Jeremy Wacksman in the release. "With home shopping "iBuyers are concentrating their efforts in Southern markets where both home sales and prices are poised for strong growth." — Daryl Fairweather, Chief Economist, Redfin

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