Top Non-QM Lenders of 2022

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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

RankingLender Name2022 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)

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