Oaktree Funding Review 2026: 1,327 Loans, 11 CFPB Complaints

Which Oaktree is this

Oaktree Funding Corp. is a mortgage lender. Its wholesale site gives the legal name “Oaktree Funding Corp., NMLS# 71640”, a corporate address of 3133 W Frye Road, Suite 205, Chandler, Arizona 85226 and the line “AZ State MB 0920541”. The 2025 FFIEC filer list shows the HMDA filer as OAKTREE FUNDING CORP under LEI 549300KX4S1573HISS22. The site says it was established in 1989 and calls itself “a multi-state licensed Mortgage Banker”; the City of Chandler’s February 24, 2026 news release says the company has been in Chandler for about 15 years and describes it as “a nationwide licensed mortgage banker”. It operates through “Wholesale, Correspondent, and Retail Lending” and states it is HUD-approved for FHA and reverse mortgages, USDA-approved for the guarantee program and VA-approved.

It has no connection that we can document with Oaktree Capital Management. That firm is an asset manager that files with the SEC, with a business address at 333 S Grand Avenue in Los Angeles in its EDGAR record (CIK 0000949509). Oaktree Funding Corp. has no EDGAR registrant of its own: a company-name search for “oaktree funding” returned no matching companies on October 21, 2026. The funds and listed companies we cover under the Oaktree name, such as Oaktree Strategic Credit Fund and Oaktree Asset-Backed Income Fund, belong to the asset manager’s family, and nothing on this page (loan figures, complaints, licences) applies to them or the reverse. Other similarly named businesses appear in search results; we have not read their records and attribute nothing from them to this lender.

Ownership is not stated. Neither the lender’s site, the January 2026 ARIVE release nor the city release names an owner or parent, and a private company files no ownership statement that we could read. Treat the owner as unknown. NMLS Consumer Access, which holds the state licence list for NMLS ID 71640, redirected our request on October 21, 2026 to a page asking the visitor to accept terms and type characters before viewing; its terms also prohibit scraping, so we stopped there. Check the licence list for your state yourself before you sign, and do the same for your broker.

What the federal loan file shows: 2022 to 2025

HMDA obliges lenders to report each application and loan. The table counts loans originated (action taken 1) for LEI 549300KX4S1573HISS22. The loan and dollar totals match the FFIEC data browser’s aggregation for each year; everything else is our tabulation of the loan-level file. “Business-purpose” means the lender flagged the loan under HMDA’s business-or-commercial-purpose field. “DSCR-type” is our proxy and the same one used on our DSCR lender ranking: conventional first lien, business purpose, no debt-to-income ratio reported, a term of 30 years or more, on a one-to-four-unit investment property.

Four readings:

• Volume rebounded after 2023. Loans fell 21% from 2022 to 2023 and rose 93% from 2023 to 2025 (our arithmetic). The 2025 count is 52% above 2022.
• The second-lien business is new. There were 3 subordinate liens in 2022; in 2025 there were 305, and open-end lines of credit, which the file did not show in 2022 or 2023, reached 214. This matches the “Equity Advantage” HELOC and second-lien programs on the lender’s site.
• The investor share is mid-sized, not dominant. Business-purpose loans were 44% of 2022 loans and 42% of 2025 loans (our arithmetic). A reader who comes for a rental loan is one of 557; most of the book is owner-occupant mortgages and equity products.
• Almost everything was sold. Of the 1,327 loans, 1,131 had purchaser type 71 (sold to a mortgage bank, credit union or finance company), 2 went to a private securitizer and 194 were not sold within the year. HMDA does not name the buyers.

The 2025 book: purpose, lien, occupancy

What the table says:

• A second lien costs about 2.4 points more than a first lien. The median is 9.75% against 7.375% (our arithmetic: 2.375 percentage points). Lines of credit are at 10.0%, and 110 of the 214 are at 10% or more. Of the 214, 164 are on a principal residence, 43 on investment property and 7 on second homes; California has 106. Illustration (our arithmetic): at the median $235,000 line and 10.0%, interest-only interest is $23,500 a year before fees; at the median $465,000 first lien and 7.375% it is $34,294. HMDA does not show what portion of a line was drawn, so the first figure is a ceiling for that loan size, not what a borrower paid.
• Cash-out refinances are the largest purpose (678 loans, 51.1%) and the dearest first-lien type: 8.375% against 7.375% for purchases. Other refinances sit at 7.125%.
• The note rate does not capture cost. Total loan costs are reported on 558 loans and discount points on 246, and the business-purpose loans do not carry them. HMDA also does not show the broker’s compensation. The prepayment-penalty term is filled for 84 loans, none of them business-purpose, so the file says nothing about prepayment terms on rental loans.
• One field looks odd. 148 loans are coded as HOEPA high-cost mortgages, and 145 of them are business-purpose investor loans, which that law does not cover. We read it as a coding choice by the filer, not as evidence of high-cost lending.

Business-purpose loans by size

There is a size effect only at the bottom, and it rests on 18 loans: the under-$150,000 median is 0.87 points above the $150,000 to $999,999 bands (our arithmetic). The middle of the book, $150,000 to $999,999, is priced the same at 7.25%. For how this compares with other lenders and with national medians see DSCR loan rates 2026.

Where the loans are

Loans appear in 43 states and territories. California, Florida and Arizona together are 720 loans, 54.3% of the book (our arithmetic); the home state, Arizona, is only 9.5%.

What the lender says it offers

These descriptions are from the lender’s wholesale site, nonqmexpert.com, read October 21, 2026. They are marketing for brokers, not a quote.

None of the product pages we read gives a minimum credit score, maximum loan-to-value, loan limit or prepayment term; those sit in rate matrices and a “Secondary Pricing & Lock Policies” download that we did not open. We therefore cannot say what a DSCR loan from Oaktree costs or whether it carries a prepayment penalty: ask your broker for the matrix and the term sheet. An ARIVE press release of January 2026 says the lender’s bank statement, DSCR and asset utilization programs went live on that broker platform; borrowers reach the lender mostly through brokers, since the site is built for them.

Applications, approvals and denials in 2025

HMDA also records the files that did not close.

“Decided” is originated plus approved-not-accepted plus denied; percentages are our arithmetic. Two points. Denial is rare: 159 of 2,666 decided files (6.0%), against 13.7% in 2023 and 5.4% in 2024. And roughly four in ten files ended as an approval the applicant did not take, which is the pattern of a wholesale lender whose brokers send a file to several lenders and take the best offer; HMDA cannot confirm the reason. The first listed denial reason for the 63 business-purpose denials was collateral in 26, other in 21, credit history in 10, unverifiable information in 2, insufficient cash in 2, an incomplete application in 1 and the debt-to-income ratio in 1. For the other 96 denials it was the debt-to-income ratio in 46, other in 17 and collateral in 16.

Complaints: what the CFPB database shows

On October 21, 2026 we searched the CFPB Consumer Complaint Database by company. One company name contains “oaktree”: OAKTREE FUNDING CORPORATION, with 11 complaints, all about mortgages. The database held records up to October 21, 2026.

The count is small for a lender that closed 1,327 loans in 2025 and about 4,000 over four years (our arithmetic: 872 + 689 + 1,122 + 1,327 = 4,010 loans); none closed with monetary relief. But five of the 11 carry a “timely: No” flag, and the two most recent, received April 29, 2026 (a loan sold or transferred) and July 14, 2026 (a HELOC closing, “trying to communicate with the company”), both show an untimely response. Limits: only complaints sent through the CFPB are counted, borrowers of business-purpose loans file there less, and the database matches by company name, so we assume without proof that these are the Chandler lender’s.

Court records

A search of the federal docket aggregator CourtListener on October 21, 2026 found one case naming “Oaktree Funding Corp” as defendant: case 1:23-cv-24413 in the Southern District of Florida, filed November 20, 2023 and terminated March 29, 2024, with the cause listed as 47:227 (restrictions on the use of telephone equipment). The docket lists no address for the defendant, so we cannot tie it to the Chandler lender, and we did not read the complaint, so we say nothing about what was alleged or how it ended. No SEC filings exist under the name, and we found no state enforcement action naming the Chandler company in the sources we could open.

What a reader can do with this

• Decide which loan you are shopping. Oaktree’s book is a mix: rental loans (557 business-purpose), owner-occupied mortgages (612) and equity lines and seconds (305). The 7.25% business-purpose median and the 10.0% line-of-credit median are different products; do not compare them.
• Ask your broker for the matrix and the prepayment term. The product pages state neither. A DSCR or cash-flow loan quote should say the note rate, the points, the broker compensation, the interest-only period if any and the prepayment penalty, in writing.
• If you want a second lien, price a first-lien refinance beside it. In this file the second-lien median is 2.4 points above the first-lien median; see HELOC on an investment property and bank statement loans for the trade-offs.
• Compare at least one other lender the same day. About 40% of Oaktree’s 2025 files were approved and not taken. For how lenders rank in the same data see DSCR lenders ranked by loans made, and for a comparable non-QM lender read our Acra Lending review.
• Check the licence and the servicer. Look up NMLS ID 71640 and your broker on NMLS Consumer Access, and ask who will service the loan: 85% of 2025 loans were sold within the year. Our DSCR lender checklist lists what else to confirm.

FAQ

Sources, read October 21, 2026: FFIEC HMDA loan-level files and aggregation totals for 2022 to 2025 and the 2025 filer list (CFPB Data Browser, LEI 549300KX4S1573HISS22), tabulated by us with action taken = 1 for originations and the other filters applied locally; the CFPB Consumer Complaint Database search API; nonqmexpert.com home, about and product pages; the City of Chandler news release of February 24, 2026; the ARIVE press release of January 2026; the SEC EDGAR record for CIK 0000949509 and EDGAR company search; the CourtListener RECAP docket for case 1:23-cv-24413; NMLS Consumer Access (not read). This is analysis of public records, not investment, legal, lending or tax advice. We have no commercial relationship with Oaktree Funding; Kiavi is a paid link.