The tariff war blew a hole in non-QM profits last week, but a turnaround is underway.

Proponents of the non-agency market see GSE reform as an opportunity to take steps to increase the non-agency share of activity in the secondary market. The Trump administration’s plans for the secondary market remain unclear.

A new bill sets exemptions for secondary market participants after a state regulator established deeply unpopular licensing requirements at the beginning of the year.

Carrington is expanding its guidelines and offering competitive pricing for non-QMs in the correspondent channel, aiming to gain market share. The company also works to help correspondent sellers mitigate risks on non-QM sales.

Castlelake plans to invest in up to $2 billion of newly originated residential mortgages sourced from Invictus Capital Partners.

Beeline Financial started operations in 2020 and has yet to turn a profit. The company is now publicly traded thanks to a transaction involving a distillery, with plans to boost non-QM lending by leaning on technology.

Moody’s affirms assessments on Redwood; Deephaven loosens DSCR underwriting; Dan Perl update; ARDRI acquires expanded-credit lender; new proprietary reverse mortgages from Mutual of Omaha Mortgage.

Brian O’Shaughnessy, the former co-CEO of Rama Capital Partners, launched ARDRI to provide a mix of the latest technology and customer-focused operations for non-QM mortgage brokers.

A change in FHA lending requirements could lead to more non-permanent residents using non-QM options.

Toorak Connect is an underwriting platform that uses artificial intelligence and machine learning to score loans based on risk. It has been used to underwrite more than $5 billion in business-purpose loans since its launch in 2022.