Company: AOMN
Filing Date: 2025-03-24
Form Type: 10-K
Source: 0001766478-25-000019
Chunk: 71

Company: Angel Oak Mortgage REIT, Inc.
Filing Date: 2025-03-24
Form: 10-K
Item: Item 1A
Chunk 71
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 apply to the circumstances relating to any particular breach.

Security breaches could also significantly damage our reputation with existing and prospective loan sellers, borrowers, and third parties with whom we do business. Any publicized security problems affecting our businesses and/or those of such third parties may negatively impact the market perception of our products and discourage market participants from doing business with us. These risks may increase in the future as we continue to increase our reliance on the internet and on the use of cybersecurity.

We and Angel Oak Mortgage Lending may be unable to make technological improvements as quickly as demanded by parties with which we or Angel Oak Mortgage Lending transact, which may adversely affect our results of operations, financial condition and liquidity.

The financial services industry is undergoing rapid technological changes, with frequent introductions of new technology-driven products and services, including, most recently, solutions powered by artificial intelligence (AI). The effective use of technology increases efficiency and enables financial and lending institutions to better serve clients and reduce costs; however, the use of any emerging technologies, such as those incorporating AI, machine-learning, or algorithmic decision-making, poses an array of risks, both familiar and new. Our future success will depend, in part, upon Angel Oak Mortgage Lending’s ability to address the needs of borrowers and customers by using technology as well as our ability to create additional efficiencies in our operations. Our future success in such endeavors will also depend, in part, on our and Angel Oak Mortgage Lending’s ability to incorporate the use of such technologies thoughtfully and in a legally compliant manner. Angel Oak Mortgage Lending may not be able to effectively implement new technology-driven products and services as quickly or as safely as competitors or be successful in marketing these products and services to borrowers and sellers. Failure to successfully keep pace with technological change affecting the financial services industry, or failure to prudently implement such changes, could harm our ability to attract investors, or Angel Oak Mortgage Lending’s ability to attract borrowers and customers, and adversely affect our ability to acquire non-QM loans and other target assets from Angel Oak Mortgage Lending on desirable terms or in sufficient amounts, which could adversely affect our results of operations, financial condition and liquidity.

We are highly dependent on information systems, and system failures could significantly disrupt our business, which may, in turn, have a material adverse effect on us.

Our business is highly dependent on communications and information systems. Any failure or interruption of our systems or cyber-attacks or security breaches of our networks or systems could cause delays or other problems in acquiring mortgage loans or our