Mortgage Lender Angel Oak Axes 70% of Its Staff

  • Firm catering to riskier borrowers cuts almost 200 employees
  • Lenders have pulled back from non-QM mortgages amid pandemic
Photographer: Daniel Acker/Bloomberg
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One of the largest U.S. mortgage firms catering to riskier borrowers slashed 70% of its workforce, signaling a deep slowdown in that business.

Angel Oak Mortgage Solutions, which specializes in so-called non-qualified mortgages that can’t be sold to Fannie Mae or Freddie Mac, cut almost 200 of its 275 employees amid the coronavirus pandemic, said Sreeni Prabhu, co-chief executive officer of the firm’s parent, Angel Oak Cos.