The Rise of Non-QM: Why Flexibility Is Now the Key to Lending Success

Non-QM lending has transitioned from a niche segment to a critical driver of growth within the mortgage industry. According to the latest data from the Mortgage Bankers Association (MBA) and industry reports presented at the 2025 MBA Annual Conference, non-QM originations surged from just 3% of total mortgage volume in 2020 to approximately 5% in 2024, a trajectory expected to accelerate further in 2025.

This rapid expansion reflects broader industry shifts: evolving borrower profiles, increased investor appetite, and a landscape where traditional criteria no longer suffice. The modern borrower, ranging from self-employed professionals and gig economy workers to investors seeking flexible financing—demands innovative, non-agency solutions. As home prices continue to climb and credit standards adapt, the need for flexible, efficient non-QM products is more pressing than ever.

But Growth Brings Operational Challenges

With this burgeoning market comes a host of operational complexities. Many lenders still rely on legacy workflows designed for simpler, agency-backed loans. Paper-intensive processes, siloed systems, and inconsistent documentation are now significant bottlenecks, hindering scalability and responsiveness.

Manual workflows lead to delays, elevate compliance risks, and limit the ability to meet evolving borrower expectations. As non-QM volume increases, these inefficiencies threaten to impede growth rather than support it.

Use Calyx Path to Modernize Non-QM Origination

Calyx’s cloud-based Loan Origination System, Path, offers a solution tailored for lenders navigating the complexities of the expanding non-QM market. Built for agility and automation, Path replaces manual, time-consuming tasks with intelligent, streamlined workflows, reducing paperwork, minimizing errors, and accelerating the journey from application to closing.

Recent industry panels at the 2025 MBA conference emphasized the importance of digital transformation in mortgage origination, with many lenders prioritizing automation to stay competitive. Path enables lenders to:

• Digitize and automate end-to-end workflows
• Centralize operations with real-time pipeline visibility
• Adapt swiftly to changing regulations and guidelines
• Maintain compliance with Fair Lending, Regulation B, and other regulatory standards
• Make faster, more accurate credit decisions

Empower Your Team and Accelerate Growth

By reducing reliance on manual processes and paper files, Path allows your team to focus on what truly matters: serving more borrowers with confidence and clarity. As industry reports highlight, lenders leveraging automation see faster decision times, improved compliance, and increased capacity to handle complex borrower profiles.

Don’t Let Paperwork Limit Your Potential

The expanding non-QM market offers significant opportunities, provided your technology infrastructure can keep pace. Path empowers lenders to scale efficiently, stay compliant, and deliver an exceptional borrower experience without being overwhelmed by paperwork.

If you're ready to modernize your origination process and seize the full potential of non-QM lending, Path is your strategic next step.

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