Non-QM loans surge as gig economy grows

"We just came off a record month, and this month (October) is on pace for another all-time record. I would say the drivers have been non-agency loans or non-QM. So if you look at just non-agency estimates earlier in the year, people were forecasting a range of $60 billion to $70 billion in non-QM. We're probably hit over $100 billion this year, so a 50% beat from the beginning of the year."

"People were estimating securitizations were supposed to be maybe $50 billion; we're at $58 billion already, and we'll probably hit $70 billion. So the market is growing. There are a ton of capital investors. I would say second liens have been a big area of growth as well. So I think year to date, second liens, as of the first half of the year, hit about $125 billion, and that includes closed-end seconds and traditional HELOCs."

"It's hard to recruit and retain talent if you don't have these products. And the reality is, there are 18 million self-employed people in the United States that account for, let's call it, 31 million businesses. There are 19 million investment properties in the United States that account for 49.5 million doors. There are more self-employed people than veterans. So all these lenders who have a veteran program, they should have a solution for self-employed people. And they should have a solution for investors."

Deephaven experienced record monthly originations driven primarily by non-agency (non‑QM) lending, surpassing earlier forecasts with over $100 billion year-to-date. Securitizations are expanding, approaching $70 billion, while second liens reached about $125 billion in the first half, including closed-end seconds and HELOCs. Retail lending (RTL) is projected at $35 billion, contributing to a combined originations market of roughly $350–$400 billion, with jumbo loans comprising about 20% of total mortgage originations. Loan officers need access to these products to remain competitive and retain talent. Large demographic pools of self-employed borrowers and investment-property owners create sustained demand for tailored lender solutions.

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