Small banks reduced the share of non-qualified mortgages they originated in 2016, but some nonbanks are expected to significantly increase their activity in the sector. Non-QMs accounted for 9.0 percent of the mortgages originated by participants in the American Bankers Association’s annual real-estate lending survey. Some 159 banks were surveyed by the trade group and about 76.0 percent of the participating institutions had assets of less than $1.0 billion. In 2015 ...