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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 38 December 2025 F E A T U R E S T O R Y of manually reviewing 24 months of statements, advanced systems can iden- tify business revenue, separate it from transfers and one-time deposits, and calculate qualifying income in hours, not weeks. This isn't the exception. It's the new status quo. But technology isn't just about speed; it's about accuracy and accessibil- ity. Modern non-QM underwriting can identify patterns that human underwrit- ers might miss. From seasonal busi- nesses and irregular income patterns to multiple revenue streams, artificial intelligence can analyze these complex scenarios and provide an accurate risk assessment that actually reflects a bor- rower's ability to pay. The real game-changer? Direct bank verification systems. With borrower per- mission, lenders can now pull bank data directly, eliminating the tedious process of gathering, scanning, and uploading months of statements. This reduces fraud risk, speeds processing, and most importantly, gets borrowers to closing faster. In a market where speed wins deals, this technology gives non-QM brokers a serious competitive advantage. Capital Markets: The Engine Behind Innovation T he secondary market's embrace of non-QM has fundamentally changed what's possible in mortgage lending. Non-QM loans made up about 5% of total mortgage originations in 2024, the highest share on record for this alternative sector. Per Scotsman Guide, citing S&P Global predictions, non-QM loans will represent nearly 30% of non-agency mortgage-backed securities in 2025, a signal of strong and growing demand from institutional investors and the secondary market. This expansion is underpinned by robust loan perfor- mance and an increased appetite from banks and insurers alike, positioning non-QM as a key growth driver for the coming years. Although credit performance has softened since its post-pandemic highs, the resilience of non-QM lending and its capacity for strong risk segmentation con- tinue to attract institutional capital and fuel growth in the secondary market. What does this mean for brokers? More products, better pricing, and faster execution. Foreign national programs have expanded dramatically, serving international buyers without a U.S. credit history. Asset depletion loans now let retirees with substantial savings, but no traditional income, to qualify for mortgages. P&L programs accept CPA-prepared profit and loss statements instead of tax returns. Each product solves a specific problem for borrowers that conventional lending can't serve. The standardization of non-QM guidelines has also reduced the learning curve. While each lender has nuances, core products like DSCR, bank statement, and asset depletion loans now follow rela- tively consistent frameworks. This means brokers can build expertise that transfers across multiple lending partners, increas- ing efficiency and closing rates. Your Revenue Roadmap for Late 2025 A s we navigate the remainder of 2025, non-QM lending offers the clearest path to increased production and revenue. The National Association of Realtors forecasts modest growth in purchase activity, but with rates stabilizing, the refinance boom won't return anytime soon. Success requires capturing more of the available mar- ket—and that means serving borrowers that conventional lending ignores. The numbers are compelling. Research from Statista projects that as many as 90.1 million U.S. workers will participate in freelancing by 2028, ac- counting for more than half of the U.S. labor force. Add small business owners, real estate investors, retirees, and foreign nationals, and you're looking at a mas- sive portion of the potential mortgage market underserved by conventional lending. These aren't subprime borrow- ers—they're stable, often high-net-worth individuals with excellent credit who simply don't fit the W-2 mold. The numbers are compelling. Research from Statista projects that as many as 90.1 million U.S. workers will participate in freelancing by 2028, accounting for more than half of the U.S. labor force.