FundLoans’ push to embrace increasingly sophisticated technology is all part of its bespoke approach to lending, spurred on by the increasing popularity of non-QM lending.
According to the Structured Finance Association (SFA) research corner, non-QM issuance reached a record $22 billion in 2019 before dropping off in 2020, during the height of the COVID pandemic.
However, ‘normal service has been resumed’, and this year market analyst S&P Global predicts that non-QM issuance is expected to hit $25 billion, surpassing the previous record set in 2019.
Furthermore, some non-QM lenders believe that the market’s potential is far greater and could grow to as much as $300 billion annually.
Maddux echoed the positive mood surrounding non-QM, saying FundLoans “had definitely seen an upwards trend” and an uptick in loan submissions, particularly now that refinances were starting to dry up amid higher interest rates.