Certiphy's mission is to transform Non-QM lending by bringing QM-level credit quality standards to every Non-QM loan. We envision a market where Non-QM loans are as reliable and trusted as their QM counterparts, enabling broader market participation and sustainable growth.
Today, Non-QM loans show delinquency rates between 3% and 5%, compared to just 0.7% for QM loans backed by Fannie Mae. This gap represents not just a challenge, but an opportunity to revolutionize the Non-QM market through systematic quality improvement and standardization.
Non-QM loans serve a vital market need, providing financing solutions for creditworthy borrowers who don't fit traditional lending criteria. However, these loans face persistent challenges that hamper market growth and efficiency:
Certiphy aims to eliminate these inefficiencies by ensuring every Non-QM loan meets investor-specific requirements before closing. This transformation will:
Deficient loans represent a significant financial and operational burden within the Non-QM market, incurring total costs of $1.18 billion in 2024. Approximately 15% of all originated Non-QM loans have deficiencies, creating substantial inefficiencies throughout the lending ecosystem.