Mortgage Calculator also specializes in non-qualified mortgage (non-QM) products for borrowers who do not meet traditional lending criteria. These loans include options for borrowers to use alternative income documents, such as bank statements or income statements, as well as specialized loans for investors.
Despite fluctuations in mortgage rates, the non-QM sector has experienced significant growth. Demand for non-QM products, including second mortgages and home equity lines of credit (HELOCs), surged more than 20% in the third quarter of 2024, according to a recent MCT Trading report.
This growth reflects insurance companies and other investors aggressively expanding their portfolios and institutional investors’ increasing interest in alternative financing products.
Read next: Why 2025 could be a big year for non-QM lending
The fair value of non-QM mortgage servicing rights (MSRs) currently ranges from 3.65x to 4.125x servicing fees, while the fair value of second mortgages and HELOCs ranges from 2.30x to 2.85x servicing fees.
