Welcome to Angel Oak Mortgage Solutions Welcome Webinar
Welcome to Angel Oak Mortgage Solutions Welcome Webinar Larry Mize Regional Vice President of Sales
Welcome Aboard! You’re Approved, Now What? Introduction What How Where Angel Oak Mortgage Solutions and non-QM What are the non -QM products? How can non -QM loans help you close more deals? Where can you find non-QM borrowers?
3 Who Is Angel Oak Mortgage Solutions? • Non-QM Wholesale and Correspondent Lender • Market Leader since 2013 – Specializing only in Non-Agency • Vertically Integrated – Our funds buy our loans • Securitizing Non-QM – 5 securitizations for over $830 MM – AAA Fitch Rating • Customer Service Comes First! – – – Access to U/W’s Common sense approach to U/W Close in 17 -21 days Fast turn times Intuitive and simple website Local representation
Angel Oak: Filling the Gap We were created to fill the gap between tight agency guidelines and hard money. Bringing private capital back into the mortgage market. Alternative loans do not have a government guarantee on performance, with rates reflecting that additional risk. A track record of good production will bring trust back into the marketplace. Securitizations in the secondary market will heighten the exposure to and demand for nonagency origination.
What do portfolio products mean exactly? 2006 2018 2006 Proof of Income Credit Score 580 680 ü ü Oversight and Regulation Down Payment $ 2018 $ ? $ $ $ Insert your logo here.
Angel Oak and Non-QM • Angel Oak loans may not be QM for the following reasons: • Fees typically exceed 3% (never exceed 5%) • DTI over 43% allowed • Using bank statements for income verification • Angel Oak production averages: • DTI 35% • LTV 73% (skin in the game!) • FICO 687
Non-QM Performance “Of the $4. 3 billion and roughly 11, 000 loans securitized since 2015 where loan-level performance data is publicly available, only 8 loans have entered foreclosure. ” Fitch, U. S. RMBS Monthly Update, March 2018
Why Originate Non-QM Loans With Angel Oak? Prospecting Resources Be the Stand-Out Resource Increase Your Earnings • Marketing Flyers • Differentiate yourself • Save Agency fall-out loans – Realtors – Borrowers Do the loans your competitors don’t know how to do – (Before they learn how…) • Strengthen relationships for more referrals • 2 for 1 • Videos • Your local Account Executive •
9 The $ Costs Of Not Providing Non-QM Options • Loss of the loan – Immediate earnings • Loss of the client – The borrower should be yours for life • Loss of future referrals – Friends and family • Loss of relationship – Your Realtors and referral partners go with the LO that got the job done
Your Clients Can Buy A Home Now—No Waiting Investors? Bankruptcy/ Foreclosure? Self-employed? Low credit scores? Asset qualification?
11 Credit Events What is a credit/life event borrower? A borrower who can’t go Fannie Mae or Freddie Mac due to credit or seasoning of a life event ! ü ü ü ü Foreclosure – 1 day out Bankruptcy – 1 day out Mortgage lates Open disputes Recent collections Low score – we go down to 500 High LTV up to 90% - no MI • Non-warrantable condos considered across all programs • Default term is either 5/1 or 7/1 ARM ü ü 40/50% DTI Up to 90% LTV – no MI Gift funds accepted No trade lines but can verify rent – up to 75% LTV ü Okay with Jumbo loan amounts!
Non-Prime / Recent Housing Event • 90% No MI at 680 score (purchase, rate-term, debt consolidation) • 85% NO MI at 600 score (purchase, rate-term, cash-out) • Credit scores start at 500 • 1 day out of FF, SS, BK, or DIL (Chapter 13 buy out available) • Recent mortgage and consumer lates OK • No open credit OK to 75% • Rent-free OK • Non-warrantable condos considered across all programs
Debt Consolidation • • • 90% No MI with 680 score 85% No MI credit scores down to 600 80% credit scores down to 540 75% credit scores down to 500 LTVs vary based on scores, credit, property types, and cash in hand
14 Programs for the Self-Employed Bank Statement • • Self-employed for 2 years 12 month personal or 24 month business bank statement No tax returns or 4506 t 600 to 85% LTV 660 to 90% - no MI Can use gift funds (max 80%LTV) Can use funds from the business for down payment and reserves Purchase (Second home & Investment), Refinance (CO & R/T) Loan amounts up to 3 million. 1 Year Tax Return • Self-employed 2 years • Must use 2017 returns • Verify 4506 t with record of accounts. • Non-warrantable condos considered across all programs • Default term is either 5/1 or 7/1 ARM
Platinum • • • 90% No MI to $2. 5 million 85% No MI to $3 million Credit scores start at 660 4 years seasoning FC, SS, BK, or DIL Owner-occupied / second homes Full Doc, bank statements, assets qualifier or 1 year tax return available • Cash out up to $500, 000 • Non-warrantable condos considered across all programs
Portfolio Select • • 90% No MI at 660 score 85% No MI at 600 score Loans up to $3 million 2 years seasoning FC, SS, BK, or DIL (Chapter 13 no seasoning; if discharged & filed over 2 years) • Owner-occupied / second homes / investment properties • Full-Doc, bank statements, asset qualifier or 1 year tax returns available • Cash out to $500, 000 depending on property occupancy • Non-warrantable condos considered across all programs
17 Jumbo Yes – we have a great JUMBO program! • 3 million to 85% LTV • 2. 5 million to 90% LTV (require 700 score) • Full Doc / Bank statement / Asset Qualifier What if I have a borrower with a low credit score? We have you covered! Full Doc / Bank Statement • 2 million to 90% LTV with 660 • 2 million to 85% LTV with 600 Full Doc only • 1 million to 80% with 540 • 1 million to 75% with 500 On all Jumbo’s – 40/50% DTI, gift funds accepted and no MI • Non-warrantable condos considered across all programs • Default term is either 5/1 or 7/1 ARM
18 Investment Properties No Income Verified Assets – Investor cash flow • • • Debt service ratio. Rent/PITIA 80% LTV with ratios over 1. 00% Source & seasoning of funds 30 days Can have 10 or more financed properties Borrower must own primary residence Bank Statement & Full Doc • • 680 to 85% LTV 640 to 80% Full Doc • 580 to 80% Full Doc All Investment transaction may close TITLE in a LLC • Non-warrantable condos considered across all programs • Default term is either 5/1 or 7/1 ARM
19 Programs for a High Net Worth Borrower Tons of assets in the bank – no income stream Asset Qualifier • • • Cover purchase price 6 months reserves 5 years of monthly liabilities $500, 000 left after down payment and closing cost Must have had funds 12 months prior • Non-warrantable condos considered across all programs • Default term is either 5/1 or 7/1 ARM
Foreign National • • • Up to 75% LTV No credit score required No SSN or ITIN required Simple credit reference letters to satisfy trade lines 12 months reserves required Loans up to $750, 000 (higher amounts case by case) Reserves can remain in foreign account Minimum loan amount down to $75, 000 Fewer country restrictions than other lenders • Non-warrantable condos considered across all programs
21 They do this? Yes – we do! • Student loan debt? • Loans that are deferred out more than 12 months from the closing date are removed from the DTI! • Need 90% cash out – we have it! • Set up like a debt consolidation loan with max $2 K cash in hand – 680 FICO • 85% LTV cash out with 680 score – up to 200 K cash in hand • Full doc and bank statement • Need to use appraised value after 3 months? • Yes, on all rate/term refinances • Lease purchase option • We use the sales price as the loan amount and the LTV is set by the appraised value. Works like a rate/term but it’s a purchase. • Non-warrantable condos • Yes, strength is investor concentration (can’t touch condotels) • We use the credit score of the primary wage earner – don’t care if co-borrower has bad credit.
Angel. Oak. MS. com → Fast, Easy And Simple • Quick Quote tool: angeloakms. com/quickquote • Pre. Qual request: angeloakms. com/prequal • Blog: Resources and material for understanding non-QM better, angeloakms. com/blog • Broker access form: Sign up additional users, angeloakms. com/brokerpackage • Training videos: angeloakms. com/trainingvideos
Angel. Oak. MS. com → TPO Portal • Access to our portal: angeloakms. com 1. Marketing tools (next few slides) 2. Loan submission 3. Appraisal ordering
Where Can You Find These Borrowers? • • • Realtors Builders and Developers Lead Generators / Providers Other LOs Bankruptcy Attorneys Accountants, Financial Advisors
Have A Question? Who Should You Contact? Visit our website Angeloakms. com Or Contact your Account Executive Angeloakms. com/map
26 How to work with us • Quick Quote – self pricing online https: //angeloakms. com/live/quickquote. php • Prequal Request http: //angeloakms. com/prequalification-request/
Grow your business by utilizing Portfolio Products. Contact us: 855. 539. 4910 | info@angeloakms. com 3. 14. 18. ALB
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