Non-QM lender Angel Oak Mortgage Solutions announced on Monday it is boosting its efforts in non-QM correspondent lending following a rise in demand for non-qualified mortgage products.

The company explained in a press release that given its position in the non-QM market, and its alignment with affiliated company Angel Oak Capital Advisors, it is uniquely positioned to lead the revival of correspondent lending. Through correspondent relationships, Angel Oak Mortgage Solutions expects significant growth in this year and beyond, it said. 

“From the underwriting, lending, and securitization processes, the Angel Oak family of companies has industry-leading experience in every aspect of the non-agency market,” explained Tom Hutchens, senior vice president of sales and marketing for Angel Oak Mortgage Solutions. “This distinct corporate structure, our years of experience with non-agency products and our ability to securitize our production, make Angel Oak Mortgage Solutions an ideal partner for lenders seeking a non-agency correspondent relationship.”

“Today, non-QM originations total roughly $20 billion per year, but we believe the non-QM market will grow to over $100 billion in the coming years,” Hutchens added. “We are seeing a lot of demand in the non-Agency market especially as more national lenders enter the space after seeing the value these products bring to the table. Angel Oak Mortgage Solutions is now prepared to fulfill this demand even better through correspondent relationships with regional and national lenders.”

In 2017, the company said its lending entities originated $1.2 billion in non-QM loans through its mortgage platform and it anticipates doubling that number in 2018. Angel Oak Companies, which includes Angel Oak Mortgage Solutions, Angel Oak Home Loans, and Angel Oak Prime Bridge, reported a record-breaking first quarter in 2018.