No longer a fringe product, Non-QM lending is a critical growth channel shaping today’s housing finance landscape. As borrower needs diversify and investor activity remains strong, business-purpose loans are playing an increasingly central role.
In two recent media interviews, Cornerstone Servicing’s Stacy Speas, Senior Vice President of Operations, shared insights with Scotsman Guide and HousingWire on how these segments are evolving and what lenders, investors, and subservicers should be paying attention to as the market moves forward.
Non-QM’s Expanding Role in Today’s Market
In a recent Scotsman Guide feature on the surge in Non-QM lending, Stacy discussed what’s driving increased adoption and why demand continues to accelerate across borrower profiles. Drawing on Cornerstone’s subservicing portfolio, she noted a healthy mix of investor and non-investor loans, with consistent performance across both.
“Borrowers are really dictating the kinds of loans that they need in the market.”
–Stacy Speas, SVP of Operations
Debt-service coverage ratio (DSCR) loans have surged in popularity for financing rental properties, the article explains, while residential transition loans (RTLs) help to finance renovation and resale projects, also known as fix-and-flips.
As the market evolves, so must servicing strategies. Stacy notes non-QM loans present distinct challenges and pain points compared to agency loans, with loss of income being the largest driver of owner-occupied non-QM distress and loss of rental payments for business-purpose borrowers. Tailoring communications and default servicing operations to proactively solve pain points unique to these product types shows to boost the performance of non-QM servicing portfolios.
Performance, borrower experience, and operational flexibility all play a role in supporting this growing segment at scale.
DSCR Lending: Built for What’s Next
Stacy also weighed in on the momentum behind business-purpose DSCR loans in a recent HousingWire interview, highlighting how investor-focused lending continues to expand and why that growth is expected to continue into the new year.
With housing affordability challenges persisting and rental demand remaining strong, DSCR loans have become a key tool for real estate investors. From a servicing standpoint, that growth underscores the importance of specialized expertise, strong compliance frameworks, and customer-centric execution.
A Common Thread: Borrower-Driven Growth
While DSCR and broader Non-QM loans serve different use cases, the underlying theme is the same: borrowers and investors are driving demand for more flexible, purpose-built lending solutions, and servicers must be equipped to support them.
These conversations reinforce Cornerstone’s commitment to servicing innovation, operational excellence, and delivering consistent performance across complex loan products.
Read the full interviews to learn more:
- Scotsman Guide: Stacy Speas on the surge in Non-QM lending
- HousingWire: Stacy Speas on the continued growth of DSCR and business-purpose loans