Brokers are turning to automation, education, and specialization to unlock new volume in the nonagency market
After years in the margins, non‑qualified mortgage (non‑QM) lending has gained renewed urgency. As agency guidelines tighten and interest rates constrain financing, borrowers falling outside conventional underwriting are looking elsewhere, and brokers are seeking lender partners who can keep pace.
Alysse Prosnick (pictured), EVP of Operations at Angel Oak Mortgage Solutions, says the resurgence of non‑QM lending since the financial crisis has opened a path for collaboration. “There are underserved borrowers who are self‑employed or investors that have a need to access credit,” she said. “The two GSEs have been tasked with helping homeownership become a dream for the masses, not just professional investors or gig economy borrowers who require non‑traditional qualification methods.”
Scalability through systems, not headcount
To handle growth without proportionally increasing staff, some lenders are deploying automation that reduces friction in broker workflows. Angel Oak, for instance, has invested in internal tools to streamline tasks such as issuing disclosures and adjusting pricing.
“Previously, a broker would register a loan, request disclosures, then wait for our team to check the boxes and issue them,” Prosnick said. “Now, through automation, that process can be completed within minutes.”
These platforms aim to redirect staff effort toward relationship-building and deal strategy. Features like real‑time price alerts and scenario-based quoting are increasingly common across the non‑QM space and help reduce human error and delay.
Educating the broker base
Many brokers are still building their knowledge of non‑QM products. To bridge that gap, Prosnick says, ongoing training is essential. “We run quarterly webinars, disseminate product updates, and conduct scenario‑based training so brokers stay current on evolving borrower profiles.”
Some lenders also maintain self-service quoting tools: brokers enter basic borrower attributes and instantly see product fits. This helps brokers respond immediately to clients and reduce upfront inquiry friction.
Serving specialized borrower segments
Non‑QM demand is largely driven by borrowers excluded by agency models: self-employed professionals, gig workers, and real‑estate investors. To serve them, lenders are expanding programs like bank statement loans, DSCR (debt service coverage ratio) options, and second-lien HELOC solutions.
“Many borrowers locked into low-rate first mortgages don’t want to refinance, but still need liquidity,” Prosnick said. “Second-lien and HELOC options allow that flexibility.” Lenders are also relaxing reserve requirements and simplifying qualification criteria to reach more clients.
Ensuring clarity and consistency
As product offerings diversify, transparent communication becomes vital to avoid mispricing or fallout. Some lenders offer pipelines that integrate quoting, pricing, and underwriting. If a broker alters terms mid-process, the system flags pricing impacts and allows real-time repricing within the same workflow.
Prosnick described this as giving brokers “control and visibility from start to finish,” which helps maintain speed, reduce surprises, and prevent deal slippage.
Brokers and lenders who prioritize education, clear communication, and process efficiency will be best positioned to meet demand from a growing segment of non-agency borrowers, without compromising speed or certainty.
