Angel Oak Mortgage, a real estate investment trust active in the acquisition and securitization of non-QM loans, appointed Sreeni Prabhu CEO and president.
He takes over from Roger Williams, effective immediately. Prabhu, who is also a co-founder, managing partner and group chief investment officer of sister company Angel Oak Capital Advisors, will serve in his new leadership position concurrently with the other roles.
Williams will remain at Angel Oak as a senior advisor during the transition, which is not expected to extend beyond the first quarter of 2023.
“After the successful completion of the company’s initial public offering in 2021 and its first full year as a public company, the board believes that now is the right time to make this leadership transition,” said Michael Fierman, chairman of the company’s board of directors, in a press release.
Sreeni Prabhu, president and CEO of Angel Oak Mortgage REIT
Prior to co-founding Angel Oak Capital, Prabhu served in leadership positions at Washington Mutual Bank, where he managed a $25 billion portfolio, and was also a member of the macro asset strategy team. He also previously held the title of head portfolio manager at SunTrust Bank.
“I look forward to my expanded role within the company, and we are fully committed to growing the company through execution of our consistent strategy of underwriting and managing credit risk, judiciously utilizing the securitization market and prudent leverage,” Prabhu said.
The leadership succession at the Atlanta-based REIT was announced just days after a sister lending business within Angel Oak Cos., laid off 75 employees, or close to 20% of its staff.
In a statement, Angel Oak Mortgage Solutions, which originates non-QM loans through brokers and correspondents, attributed the layoffs to market headwinds currently roiling the mortgage industry. Originations are running 65% under the pace of a year ago, according to the latest numbers from the Mortgage Bankers Association, as a volatile interest rate environment compounds ongoing affordability issues.
“The reduction was done to ensure that the company maintains the proper staffing level required to meet current and anticipated non-QM demand,” the statement said.
The latest changes at Angel Oak Cos. come after its publicly traded REIT posted losses in the first two quarters this year, largely due to uncertainty within the non-QM space. Rate volatility adversely affected values of its loans and securitizations.
The non-QM market has experienced its fair share of turmoil this year, with the sudden shutdown or bankruptcies of lenders during the summer, including Sprout Mortgage and First Guaranty.
But despite the market turbulence, another company within the family of businesses, Angel Oak Home Loans, which is a full-service retail originator of non-QM mortgages, has continued its expansion this year, opening several new branches.