Angel Oak Mortgage Solutions LLC, a nonbank wholesale and correspondent non-qualified mortgage (non-QM) lender, has introduced a rental automated valuation model (AVM) for its debt service coverage ratio (DSCR) loan program, aimed at providing instant, data-backed rental income estimates and increasing transactional speed and certainty for brokers and borrowers.
For years, the manual appraisal process for DSCR loans often involved weeks of waiting, frequently leading to adjustments in loan parameters and rates just prior to closing. Angel Oak’s new system, which integrates Clear Capital’s Rental AVM, addresses this challenge by utilizing the same Multiple Listing Service (MLS) data and comparable analysis used by appraisers to generate reliable rental figures within seconds.
Upon submission of a pre-qualification that meets credit requirements, Angel Oak’s platform instantly produces a rental AVM figure for the property. This figure is then locked in for the duration of the loan term, subject to significant property changes, offering brokers and borrowers confidence in the agreed-upon loan parameters. This contrasts with traditional methods where lenders typically await a physical appraisal to determine the actual DSCR, thus allowing Angel Oak to expedite the closing process.
Tom Hutchens, President of Angel Oak Mortgage Solutions, stated that this development represents a significant advancement for rental property owners and borrowers. He highlighted that the firm’s vertically integrated platform, which includes its affiliated asset management business, Angel Oak Capital Advisors, supports its capacity to introduce innovative market solutions.
Hutchens added that the enhancement provides borrowers and investors with a higher degree of execution certainty from the outset, leading to faster timelines and reduced unforeseen issues. He emphasized that this level of certainty and speed for DSCR loans is unique within the industry, equipping originators with a competitive advantage and giving investors with the confidence to make timely decisions in the current rental market.
Angel Oak Mortgage Solutions LLC (NMLS ID #1160240) is recognized as a leader in alternative lending solutions and operates in 46 states and the District of Columbia, offering a range of non-QM products. Clear Capital, founded in 2001, is a national real estate analytics, data solutions, and valuation technology company that provides AI-driven analytics, data solutions, valuation services, and automated appraisal review platforms.
