It’s time to take a look at the top non-QM lenders of 2022.
Recently, there have been a lot of headwinds in the mortgage industry.
The main culprit has been significantly higher mortgage rates.
We’re talking a 30-year fixed that is more than double what it was in early 2022.
At last glance, the 30-year fixed was priced around 7%, per Mortgage News Daily.
In the beginning of 2022, it was priced closer to 3.25%. That’s a staggering 115% increase.
Even worse, non-QM mortgage rates tend to be higher to account for increased risk and uncertainty.
So it’s likely been even more difficult to qualify and close non-QM loans.
But alas, many billions in non-QM volume still made its way to the funding table during the year 2022.
Let’s take a look at the biggest non-QM players at the moment.
Top Non-QM Lenders of 2022
| Ranking | Lender Name | 2022 Non-QM Loan Volume |
| 1. | Change Lending | $4.1 billion |
| 2. | Fairway Independent | $3.5 billion |
| 3. | Angel Oak | $3.4 billion |
| 4. | A&D Mortgage | $3.2 billion |
| 5. | NexBank | $2.6 billion |
| 6. | Acra Lending | $2.1 billion |
| 7. | American Pacific | $1.5 billion |
| 8. | Newrez/Caliber | $1.4 billion |
| 9. | CrossCountry | $1.3 billion |
| 10. | Guaranteed Rate | $1.3 billion |
Leading the way was Anaheim, CA-based Change Lending with $4.1 billion in non-QM loan volume.
They are one of just 1,000 Community Development Financial Institution (CDFIs) operating in the United States.
That distinction allows them to operate outside the ability-to-repay rules that apply to most other banks and mortgage lenders.
This could explain why about 70% of their total loan volume was non-QM.
In second was Fairway Independent Mortgage out of Madison, Wisconsin. They closed about $3.5 billion in non-QM loans during the year.
But their non-QM share represented only about 8% of overall volume. They were the top non-QM lender in 2021.
In third place was Atlanta-based Angel Oak Mortgage Solutions with $3.3 billion. The company has had struggles lately, including layoffs and the sale of their retail division.
Fourth and fifth went to Hollywood, FL-based A&D Mortgage and Dallas-based NexBank, which funded $3.2 billion and $2.6 billion in non-QMs, respectively.
Check out the rest of the top non-QM lenders in the table above, based on data from Scotsman Guide.
Three other lender narrowly missed the top-10, including LoanStream Mortgage, First National Bank of America (MI), and Oaktree Funding.
They all funded about $1.2 billion each as well.
(photo: Sonja und Jens)