ARMs accounted for 12.1% of total residential mortgage originations in the first quarter of 2025, down more than a full percentage point compared with the previous quarter. Still, production of the loans was up from the first quarter of 2024. (Includes data table.)

Non-qualified mortgages require extensive manual processes, but technology is now helping streamline originations.

eResi integrated with Intercontinental Exchange’s Encompass Investor Connect platform, looking to deliver non-qualified mortgages to investors.

In the luxury home space, 31% of repeat buyers are using cash, keeping all-cash purchases strong. Also, younger buyers who fit into the move-up buyer category are beginning to flood the luxury market.

The digital lending platform is expanding one year after its founding.

Impairment rate on securitized non-QMs rises in May; Rocket offering bridge loans; architecture firm to acquire non-QM lender; Chimera unit aggregating HEIs for securitization.

Leaders in the non-qualified mortgage space see promise in artificial intelligence, ample liquidity and the need for better marketing.

Players in the non-QM market believe the sector is lacking in awareness and education.

Short-term mortgages track residential transition loans and fix-and-flip loans. Last year, originations were up 34.6% compared with 2023. (Includes data table.)

Industry attorneys stress that there are steps mortgage lenders can take to avoid running into legal issues with originating business-purpose loans.