Companies expect agreement to ramp up non-QM growth
Brookfield Asset Management has completed its acquisition of a majority stake in Angel Oak Companies, a move set to boost both firms’ growth in the non-qualified mortgage (non-QM) space.
The transaction, first announced in April, brings Angel Oak’s $22 billion mortgage credit platform under the umbrella of Brookfield’s $332 billion global credit business, reinforcing Brookfield’s strategy to expand its reach in residential mortgage credit.
“We are excited to formally begin our partnership with Brookfield and look forward to the value it will bring to our firm,” Angel Oak co-founders and co-CEOs Sreeni Prabhu and Mike Fierman said in a joint statement.
Brookfield’s global presence and experience will help Angel Oak grow its asset management and mortgage operations, the companies said, creating new opportunities and expanding access to residential mortgage credit.
Craig Noble, CEO of Brookfield Credit, said the deal would strengthen both companies’ offerings. “We’re pleased to be partnering with Angel Oak, who is a best-in-class mortgage and consumer product asset manager. Their strong origination and differentiated investment capabilities complement our broader credit strategy, and we look forward to supporting their continued growth as they expand their institutional relationships,” Noble said.
Non-QM market poised for growth
The partnership happens as the non-QM market is set for major growth. Tom Hutchens, president of Angel Oak Mortgage Solutions, told Mortgage Professional America (MPA) that Brookfield’s investment would “add significant value as Angel Oak will seek to broaden its reach across the US and deliver innovative products to borrower segments that are underserved by traditional lenders.”
Hutchens added, “Brookfield believes in the growth potential and quality of non-QM assets and views Angel Oak as a best-in-class partner for its long-term strategy in the residential mortgage credit space.”
Industry observers have noted that potential changes to government-backed mortgage programs, such as the possible privatization of Fannie Mae and Freddie Mac, could further boost demand for non-QM products. “This move positions Angel Oak well amid potential uncertainty in the conforming loan market,” Hutchens said.
No disruption for brokers, continued innovation
Business will continue as usual. “Mortgage brokers working with Angel Oak Mortgage Solutions can expect no disruptions,” Hutchens said. “Angel Oak will continue to operate as usual, delivering the innovative mortgage products and services brokers rely on.”
He also emphasized Angel Oak’s commitment to ongoing product development, referencing the recent launch of its bank statement HELOC product as evidence of its dedication to meeting evolving borrower needs.
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