June 25, 2025

Where Non-QM Is Gaining Ground and Why That Matters Now

Over the past few weeks, I’ve been on the road quite a bit, attending MBA Secondary, the IMN Non-QM Forum, and HousingWire’s Gathering. These events brought together some of the brightest minds in lending, and I had the chance to sit down with capital markets leaders, brokers, technology partners, and originators from across the country.

Across all three events, the same message came through clearly. Non-QM isn’t just active, it’s accelerating. And this time, it feels different. The energy around this space isn’t speculative or temporary. It’s intentional.

Coming from a capital markets background myself, I’ve sat on the other side of the table when market trends were still forming. Today, there is no guesswork. Demand for Non-QM products is rising from every direction—borrowers, originators, investors, and aggregators.

The Market Is Speaking

We’re now almost halfway through 2025, and the landscape continues to evolve. Rates are still elevated, refinances remain limited, and Agency guidelines don’t always align with today’s borrower profiles. At the same time, nearly 80 percent of mortgage holders are still sitting on a rate below 5 percent. That’s left a large segment of the market in need of alternatives.

Recent data from S&P Global shows that Non-QM securitizations are up more than 30 percent year over year through the first quarter. That’s not just a reflection of investor appetite—it’s a signal that originators are using these products more proactively. It also speaks to a broader trend. Borrowers are more diverse in how they earn, save, and manage their financial lives. Roughly 10 percent of the U.S. labor force is self-employed, and many of those individuals find themselves shut out of traditional mortgage channels.

Non-QM gives these borrowers a path forward. More importantly, it gives brokers and correspondents a reason to re-engage, rather than turning clients away.

It’s Not Just About Product

One of the most consistent takeaways from my conversations this spring was that Non-QM success isn’t just about having the right programs. It’s about how you deliver them. Fast turn times, clear guidelines, and real-time support remain critical differentiators.

Non-QM is nuanced, but it shouldn’t be difficult. Originators want to work with lenders who can execute, communicate, and adapt when files get complex. It’s not about saying yes to everything—it’s about knowing when to say yes and doing it with confidence.

Final Thoughts

For years, Non-QM was considered a secondary offering. Today, it’s at the center of how many originators are growing their business. And while the broader market may remain uncertain, one thing is clear: Non-QM is no longer a fallback. It’s a foundation. Let’s continue to build that foundation… together.

- Brian Devlin, President/CEO

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