The key to implementing non-QM products


In 2020, non-QM experienced a liquidity crunch, while agency lending experienced record volumes and heavy margins within that volume.

Now, with the refi boom falling off and the margin compression happening to lenders nationwide, lenders are looking at non-QM to help fill in those gaps. 

Non-QM is helping lenders capture more volume, keep their staff busy and generate a higher margin on loan production. 

In its eight years of non-QM lending, Angel Oak has learned that non-QM lending takes time, according to Tom Hutchens, EVP of Production. 

“Patience is important because it takes time – you’re not going to roll out a non-QM product and the very next month it’s going to be a significant piece of your volume,” Hutchens said. 

The key is to spend time educating your loan officers on the programs and products to give them the confidence that they can go out and sell those non-QM products. 

“Then the volume will follow,” he said. 

Lenders should also partner with a good non-QM lender.

August 2021 was Angel Oak’s biggest non-QM volume month in the company’s history. The company is extremely excited about the outlook for non-QM lending, expecting it to grow to about 10% of the overall market. 

To learn more about Angel Oak, visit

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