Non-qualified mortgage (non-QM) production, by most accounts, has posted remarkably strong growth over the past two years amid challenging market conditions.
As a share of mortgage rate lock volumes, non-QM has steadily risen from around 4% market share in early 2024 to more than 11% as of last month, according to the latest figures from market intelligence firm Optimal Blue. That’s up from around 9% one year ago.
As non-QM’s star has risen, industry heavyweights like Newrez, CrossCountry Mortgage, Rocket Mortgage, Pennymac and others have moved to boost loan production across what was once a niche product segment. As a result, a segment once seen as helpful for saving loans has now become a priority for chasing new business.
But some exper...