Non-QM Moves From Backup Plan To Broker Strategy

One of the nation’s leading wholesale lenders, A&D Mortgage, released findings from its latest broker survey, Non-QM Fuels Mortgage Industry in 2026, showing that Non-QM lending continues to gain traction across broker pipelines.

The headline: 74.5% of brokers report growing Non-QM volume in their business today, while 88.4% expect volume to increase over the next 12 to 24 months.

A&D Mortgage surveyed more than 250 brokers in June 2026 to get a clearer picture of how originators see the Non-QM market today. The report explores the products they use most, the borrowers they serve, and the trends shaping Non-QM in 2026.

Here’s a breakdown of today’s Non-Qm market:

• Investor and DSCR loans are the top reason brokers recommend Non-QM (36.1%)
• Loans outside agency guidelines ranked second (35.6%)
• "Flexibility beyond guidelines" was the most selected definition of Non-QM (36.0%)
• Brokers rated Non-QM technology at 6.4/10 versus 7.2/10 for the broader mortgage industry

Where Is Non-QM Growth Coming From?

Today’s Non-QM market is being driven largely by investor and DSCR activity. Brokers most often recommend Non-QM for investor or DSCR scenarios, cited by 36.1% of respondents, followed closely by loans that do not meet agency requirements, at 35.6%. Other drivers include structuring flexibility, documentation complexity, and faster or more predictable closings.

Self-employed borrowers and real estate investors remain the core Non-QM clients. According to the report, 86.3% of brokers cited self-employed borrowers as a common Non-QM borrower type, while 64.4% cited real estate investors. Those segments are also leading growth, with self-employed borrowers accounting for 44.7% of growth and real estate investors accounting for 32.4%.

Additionally, a separate 7.1% share of responses came from brokers who do not work with agency loans, indicating that Non-QM is not always a conversion path from agency lending. For some, it is the primary execution channel.

Operations Have Room For Improvement

While the Non-Qm market shows plenty of promise, the survey found that workflow is still operating below overall industry technology standards. The gap between broker and broader industry technology ratings highlights a more manual and variable execution environment, exposing the need for further standardization and digital alignment.

“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,” said CEO of A&D Mortgage Max Slyusarchuk. “The opportunity isn't simply growth. It's creating a lending process that matches the flexibility of the products themselves.”

Borrower documentation remains central to the Non-QM process, with experiences varying across files. The report found that 33.8% of brokers describe documentation as clear and well-organized, while 26.7% report incomplete or missing documents. Another 21.8% note that files often require heavy assistance or guidance, and 17.8% describe them as inconsistent but ultimately complete.

“As a Non-QM leader, we improve execution by developing new products that solve real challenges in the market,” said Slyusarchuk. “Non-QM AUS is one of the key breakthroughs in this area, and we continue to advance technology that supports brokers in their daily workflow.”

The Bottom Line

Non-QM is gaining ground not just because more borrowers are falling outside the agency box, but because brokers increasingly need products built around income complexity, investor strategies, and documentation flexibility. While opportunity grows so does the need for cleaner execution.