Non-qualified mortgages continue to expand their presence in the industry, and most brokers expect this momentum to continue.

Almost 75% of brokers reported growing non-QM volume in their business over the last three years, and just 3.7% said volume decreased, according to AD Mortgage's June survey of 250 brokers. More than 88% of respondents expect activity to increase in the near future, including 56% who anticipate strong growth.

The survey also found 36.1% of brokers cited investor and debt service coverage ratio loans as the leading reason non-QM financing was recommended. Borrowers who did not meet agency lending requirements followed closely at 35.6%, while flexibility at 11.4%, documentation complexity at 10% and faster or more predictable closings at 5.9% were also driving factors. When asked to define non-QM in a single phrase, 36% of brokers selected "flexibility beyond guidelines."

"We are seeing non-QM be used as the starting point rather than the exception, particularly in cases where structure drives the decision," AD Mortgage CEO Max Slyusarchuk said in a press release Tuesday.

DSCR and bank statement loans were the central products shaping the non-QM market, as 89% and 74% of respondents, respectively, pointed to them as products dominating the market, according to the survey.

Brokers also overwhelmingly said that self-employed, at 86.6%, and real estate investors, at 64.4%, were the core non-QM clients. Self-employed was listed as the fastest-growing segment by 44.7% of brokers as well, followed by real estate investors at 32.4%, the survey found.

While brokers expressed optimism surrounding non-QM's future, many still acknowledged the opportunity for growth and innovation. Respondents scored the technology-driven nature of the non-QM process a 6.4 out of 10, compared to 7.2 out of 10 for the broader mortgage industry.

"As the non-QM market continues to expand, technology will play a critical role in helping lenders and brokers deliver a faster, more efficient experience," Slyusarchuk said. "The opportunity isn't simply growth. It's creating a lending process that matches the flexibility of the products themselves."

Heading into the year, Standard & Poor's North American structured finance outlook reported non-QM securitization was on pace to fuel an overall 25% increase in non-agency issuance in 2026, although elevated rates has dampened overall activity thus far. 

"The market still is experiencing some headwinds but we feel like maybe 2026 is going to see some relief for borrowers, primarily in interest rates," said Tom Hutchens, president of non-QM lender Angel Oak Mortgage Solutions, earlier this year.