Executive tells MPA Brookfield’s big-money move has the potential to significantly boost Angel Oak’s expansion
Brookfield Asset Management’s acquisition of majority ownership in Angel Oak Mortgage Solutions will provide a huge boost to the alternative lender and help turbocharge the growth of the non-conforming mortgage space, according to Angel Oak’s president.
The alternative investing giant announced a strategic partnership Tuesday with Angel Oak Companies, which also includes Angel Oak Capital Advisors, an asset management company. It allows Angel Oak to join Brookfield as part of the firm’s $317 billion credit business.
Tom Hutchens, president of Angel Oak Mortgage Solutions, highlighted the deal’s potential for expanding the company’s reach across non-QM shortly after it was announced.
“Angel Oak believes Brookfield can 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 told Mortgage Professional America. “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.”
Craig Noble, CEO of Brookfield Credit, believes the transaction will be a boost to both companies.
“[Angel Oak’s] origination and investment capabilities will be a strong complement to Brookfield’s overall credit offering as we grow our platform,” Noble said. “We believe Brookfield can add significant value as Angel Oak looks to build upon its success by both broadening and deepening its relationships with institutional investors.”
Angel Oak was founded in 2008 and has grown to over $18 billion in assets under management. The company serves both institutional and individual investors. The company has originated over $30 billion in residential mortgages during the last decade.
Sreeni Prabhu and Mike Fierman, co-founders and co-CEOs of Angel Oak, will be retained, as the company will continue to operate its business independently.
Could privatization of Fannie and Freddie boost business?
Rumors persist that the Trump administration may consider privatizing two of the largest government-backed mortgage programs, Fannie Mae and Freddie Mac.
Major leadership changes at Fannie Mae and Freddie Mac are raising questions about what’s next for the mortgage giants — and whether the Trump administration is preparing to move forward with privatization.https://t.co/DHQoQRflZS
— Mortgage Professional America Magazine (@MPAMagazineUS) March 24, 2025
Major changes in these programs could open the door for an expansion in the non-QM and non-conforming mortgage space, Hutchens notes.
“This move positions Angel Oak well amid potential uncertainty in the conforming loan market,” Hutchins said. “With Brookfield, Angel Oak will have the consistent support to deliver innovative products to borrower segments that are underserved by traditional lenders.”
Both companies anticipate that non-QM loans will occupy a larger portion of the mortgage market over the next few years.
“The US mortgage market is currently approximately a $2 trillion market,” Hutchens said. “Both Brookfield and Angel Oak anticipate significant market expansion over the long term, expecting non-QM loans to become a 10% component of the market, thus presenting substantial long-term growth opportunities.”
No changes for mortgage brokers who use Angel Oak
For mortgage brokers working with Angel Oak Mortgage Solutions, business will continue as usual after the acquisition, according to Hutchens.
“Mortgage brokers working with Angel Oak Mortgage Solutions can expect no disruptions,” Hutchins said. “Angel Oak will continue to operate as usual, delivering the innovative mortgage products and services brokers rely on.”
Hutchens told Mortgage Professional America in March that he believed that loan originators would find more interest in non-QM loans due to lower rates and a need to find mortgage solutions for borrowers with unique situations.
“There are some underserved borrowers that have been neglected, and now that (originators) actually originated a non-QM loan, they understand the loan itself and the process itself much better,” Hutchins said. “They’re much more apt to go out and seek these non-QM borrowers because they’re out there and they have needs for financing.
“We’ve seen a lot of originators, after they originate a non-QM loan, realize that there’s some opportunity out there.”
Hutchens promises mortgage brokers that Angel Oak will continue to look for new solutions in the non-QM and non-conforming space even after the acquisition.
“Angel Oak plans to continue innovating, such as the launch of its bank statement HELOC product last year, demonstrating a continued dedication to pioneering mortgage solutions that meet evolving borrower needs,” he said.
It’s been a busy few days of expansion for Brookfield. On Monday, Reuters reported Brookfield was finalizing a $9 billion deal to acquire Colonial Pipeline, the largest US fuel transportation system. Brookfield also announced a $1.4 billion deal to acquire laboratory equipment supplier Antylia Scientific on Wednesday.
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