Why Non-QM Lending Is Booming—and Where It’s Headed Next
Explore why non-QM lending is booming in 2025, driven by rising borrower demand, strong market resilience, and strategic growth opportunities with Verus Mortgage Capital.
Category: Blogs
Lenders: Approve Self-Employed Borrowers Without Standard Docs
Since the advent of the home lending process as we know it today, self-employed borrowers have historically faced significant obstacles when seeking mortgage approvals. These individuals now represent nearly 10% of the U.S. workforce as of 2024 and contribute substantially to the nation’s overall economy. Yet their unique financial situations often place them outside theRead More
5 Key Insights for Lenders on Non-Agency Lending
While there is some positivity in today’s housing market, pressure continues to be felt among mortgage lenders. According to the most recent economic forecast from the Mortgage Bankers Association (MBA), total single family mortgage originations are expected to grow to $1.8T in 2024 — up from $1.6T in 2023. The growth continues to come fromRead More
Non-QM vs Non-Agency 2.0 – What You Need to Know
For more than a century, homeownership has been the bedrock of the American Dream. And home mortgage finance, in turn, has been contoured by the path of American history. This evolution, frequently in response to and occasionally the cause of major historic events, continues to this day with the re-emergence of the non-agency 2.0 market.Read More
A Comprehensive Guide to Closed End Second Lien Mortgages
In the world of mortgage finance, closed end second lien mortgages have emerged as a valuable solution for borrowers seeking access to funds. Homeowners can use the money from their home’s equity for repairs, tuition, renovations, or debt consolidation. These mortgages are flexible and affordable. This blog post explains closed end second lien mortgages, sheddingRead More
Still Questioning if Your Company Should Originate Non-QM Loans?
Still Questioning if Your Company Should Originate Non-QM Loans? Verus Mortgage Capital Explains Why Now Is The Perfect Time The MBA is predicting a 9% purchase increase this year, and a 62% decrease in refinances. If that dramatic shift isn’t enough to make you turn to non-QM, consider this: Need #1: Decreasing ProfitRead More
Verus Mortgage Capital Maintains its Leadership Position in the Non-QM Sector
Verus Mortgage Capital Maintains its Leadership Position in the Non-QM Sector. With $5.4 billion in securitization volume, it was the largest non-QM issuer of 2021
Verus Mortgage Capital Shares Why Non-QM is the Answer to Decreased Conventional Loan Volumes in 2022
Over the last few months, the mortgage industry has seen a real change. While volume continues to be healthy, conventional loans’ interest rates have risen and their spreads have decreased. Now, it’s a great time for lenders to consider expanding into non-agency loans.
How to Keep Growing Your Lending Business & Profit in 2021
Choose the Right Partner and Expand Your Loan Offerings with Non-QM The 2021 mortgage market is expected to perform well throughout the year ─ even though total mortgage volume recently fell to its lowest point in 15 months, with declines seen in both weekly purchase and refinance activity, according to the latest data from theRead More
Applications Down? Verus Mortgage Capital Shares Two Reasons Lenders Should Consider Non-QM Now
Mortgage rates have increased nearly half a point since January. According to the MBA weekly survey, mortgage applications have fallen in eight of the last nine weeks. Rising rates have led to less refinancing activity. In mid-February, their share of mortgage applications dropped below 70% for the first time since October 2020. The purchase marketRead More
4 Simple Ways to Verify Income for Self-Employed Borrowers
Recent figures reveal that an estimated 16 million Americans are self-employed, many of whom are hopeful homebuyers but may find it difficult to qualify for a mortgage without a more traditional W-2 income. What can you do to help them? Fortunately, combining bank statements with an additional source of information (or two), can be anRead More
Non-QM Continues to Grow: But where, exactly, does opportunity await?
The non-QM market, predicted to rise by as much as 400% this year, continues to be an important lending channel for many mortgage bankers. Particularly when 2020 is expected to see a slight decline in originations, finding new ways to replace volume is more crucial than ever. A recent survey of loan officers found aRead More
Top 3 reasons why you need to consider non-QM
Quick quiz: What is one of the fastest-growing sectors in the mortgage industry? Answer: The non-QM market, potentially growing by as much as 400% in 2019. Many new entrants jumped into the non-QM space this year, highlighting the opportunity to expand product offerings and hedge against changing market conditions through non-QM lending. Still skeptical? HereRead More
Are declined conventional/agency loan applicants eligible for a non-qm loan?
While the lower interest rates have been a surprise for mortgage lenders, there are still borrowers who do not qualify for conventional loans through the agencies (Fannie Mae/Freddie Mac). But are these prospective borrowers just out of luck or is there a responsible alternative for these creditworthy applicants? Let’s examine two common situations: Self-Employed –Read More
What exactly is Non-QM and what should I look for in an investor partner?
Conference season is upon us and it is expected that non-QM will be one of the hottest topics at shows. The non-QM market is likely to grow by as much as 400% during 2019, a year in which overall originations were predicted to be flat, highlighting their necessity in the current market environment. When scoresRead More
Who are the credit “invisibles” and how can you help them?
In the years following the 2008 financial crisis, many aspiring homeowners found that lenders’ underwriting requirements had increased to such a degree that many creditworthy borrowers were finding it difficult or impossible to qualify. Just over ten years later, the underlying challenges apparently still remain. The Urban Institute recently reported that over 45 million U.S.Read More
The Skinny on Jumbo Loans
The latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reveals that overall home price growth continues to show signs of slowing, a good sign for homebuyers looking to break into the market. However, many metro areas posted above average price gains, and affordability in those cities is a major concern. For example, pricesRead More
Why so many loans are being rejected – and what to do about it
It certainly took some time, but a decade after the housing crisis, most analysts seem to agree that credit availability is slowly heading in the right direction. But if it seems like a large number of mortgage applications are still being rejected – many from creditworthy borrowers who simply don’t fit traditional guidelines – that’sRead More
Agency guidelines leave prospective homeowners on the sidelines
“Today’s average American home buyer is young, educated and becoming increasingly more diverse.” – Zillow There’s little doubt that the U.S. borrower base is rapidly changing and becoming more diverse. That diversity includes millennials, self-employed, investors, foreign nationals, and those with imperfect credit. Yet, despite some loosening, conventional lending guidelines have failed to keep paceRead More
New products are shaping the future of lending
No matter how you view it, the traditional credit box is changing. The need for responsible risk management will not change, but the traditional process of evaluating whether borrowers are creditworthy – or not – is transforming. At Verus Mortgage Capital, we often hear from lenders who don’t think that traditional lending standards are keepingRead More