4 Steps To Build Your Pipeline With Non-QM

With more than $20 billion in Non-QM volume generated in 2019, there continues to be steady borrower interest and ongoing need for these loan products. If you’re serious about growing your pipeline, then adding Non-QM loans to your product offering will open up doors of opportunity letting you serve a wider range of clients — those who are in need of innovative mortgage financing not offered by conforming lenders. These underserved consumers are often excluded from traditional financing options.

The first important point to note is that today’s Non-QM loans are high quality and not high risk. According to Corelogic, “In 2018, the average credit score of homebuyers with Non-QMs was 760, compared to a score of 754 for homebuyers with QMs. Additionally, “The serious delinquency rate for Non-QM loans is slightly lower than the rate for conventional QM loans and government-insured loans in 2018.”

The vast majority of Non-QM candidates have the means to buy a home and to repay a mortgage, yet, they’ve been turned down by conventional lenders because they have a non-traditional income stream, a higher debt-to-income ratio, or because they’re investing in multiple income-producing properties. Non-QM clients range from self-employed (“gig” workers), real estate investors, to anyone who’s paid in a lump-sum for their work, fixed-income retirees, and those who are have bounced back from credit issues. All signs point to the strength of Non-QM as an option for this huge client sector, all of whom are good non-QM candidates.


Ready to grow your Non-QM pipeline? Here are four easy steps to follow:

1. Partner with an experienced Non-QM lender. Not all lenders have the expertise or automated technology that’s required to quickly and efficiently price and work Non-QM loans. Find a lender, such as Sprout Mortgage, that’s not only experienced with Non-QM, but gives you the best resources for business–building.

2. Look for opportunity, everywhere. The refinance boom has homeowners looking for mortgage options. Listen to potential clients and consider how Non-QM can serve them. Work with clients who have scenarios that don’t fit the agency or conventional loan box.

3. Use the best technology: Sprout’s fine-tuned Non-QM technology provides originators with fast, accurate and complete loan scenario information.

- iQualifi: Sprout’s loan program and pricing selector tool provides instant program recommendations and pricing for all loan scenarios.

- ACORN: Sprout’s proprietary Non-QM Automated Underwriting System provides instant, accurate feedback on pricing and program guideline eligibility, and conditions prior to application submission. Accessible via Calyx Point and Encompass, ACORN accelerates underwriting decisions and helps Loan Advisors originate non-QM loans with greater confidence.

4. Marketing makes a difference. Sprout’s Marketing Store provides originators with their own virtual marketing department, including free electronic downloads of personalized flyers.


By following these simple steps it’s easy to tap into this under-served market sector and build your pipeline with Non-QM. Remember, Non-QM clients are looking for you —a lending professional with a “can-do” approach to mortgage lending. Non-QM business is abundant if you’re willing to look past the conventional approach to doing business. Today’s Non-QM loan process is high-tech, automated and streamlined for maximum efficiency. Use it to your advantage and watch your pipeline grow!


Sprout Mortgage is the leading nationwide movement in non-QM residential lending. Additionally, the company’s volume was $2.8 billion in 2019, up 89% from the 2018 yearly figure and more than seven-times the company’s 2017 total. Sprout’s loan programs and products are designed to provide lenders with a range of solutions to solve a wide variety of borrower needs for homeownership. Programs include Alternative Qualification, Moderate Credit, and Real Estate Investor loans. For more information, visit www.sproutwholesale.com or call 844-664-6100.