January 10, 2022
By Paul Muolo

Although A-paper lender/issuers are fretting about their prospects for the coming quarters, shops that specialize in non-qualified mortgage production and secondary market execution are gearing up for what could turn out to be a banner year.

Among those in the bullish camp: Acra Lending, Irvine, CA, and the Angel Oak family of companies, which is based in Atlanta.

Interestingly, both nonbanks were early pioneers in the revival of non-agency lending in the post-subprime crisis era, even though they took different routes to monetizing their originations. Acra relied mostly on whole-loan sales and partnerships, quietly working with real estate investment trusts and PIMCO while Angel Oak issued MBS but also utilized loan sales as an option.

However, changes in execution are on the horizon, at least for Acra. In an interview with Inside MBS & ABS, Executive Chairman and President Keith Lind said the company plans to issue one of its first “real” MBS deals, an event that likely will happen in the first quarter.

Source: Inside Mortgage Finance Publications, Inc. Copyright © 2022 Used with permission.