As interest rates continue to fall and borrower confidence rebuilds, originators operate in a market that requires both adaptability and creativity.
To better understand how mortgage professionals are approaching today’s environment, I asked four experienced originators to share how they are guiding clients, leveraging non-qualified mortgage solutions (non-QM), and refining their playbooks to stay competitive. What emerged was a shared message of optimism and resilience, as well as a renewed focus on customer education and relationships, two cornerstones of long-term success in our business.
How to approach borrowers in the current environment as interest rates start to fall
Two 25 basis point rate cuts this fall, plus broad expectations of at least one more rate cut until early 2026, have sparked optimism among both lenders and borrowers. New homebuyers are finally seeing interest rates drop to the 6% mark, which feels more comfortable now than even a few months ago. For existing homeowners looking for ways to lower their monthly payments or consolidate higher-interest debt, this shift has reopened the door to refinancing conversations. Interest rates haven’t returned to the historic lows of 2020 or 2021, but the decline is enough to reignite momentum and bring new energy back into the market.
Kimber White, a partner at RE Financial Services and president of the National Association of Mortgage Brokers, said, “People are starting to adjust now. They’re comfortable in the sixes, and FHA loans are in the fives. I’ve been busy; my volume is probably up 30% to 40% in the last 60 days. I think the market is picking up again. Now more than ever, we’re seeing great opportunities, whether it’s non-QM or conventional.” If the interest rate fluctuates around six and a quarter, everything will be fine.”
White’s perspective reflects what many originators are seeing as buyers return to the market: That momentum is accompanied by a growing sense of realism among borrowers, said Nancy Aguirre, CEO of and mortgage advisor at Your Better Mortgage. “There is a level of acceptance of this interest rate environment that we have been in for the last few years. People are realizing that sitting on the sidelines, hoping for a further dip or lower prices, that doesn’t quite happen,” she said.
How originators are adapting their playbooks to stay ahead of the competition
Even as interest rates change and market sentiment fluctuates, the most successful originators focus on what they can control. For example, many are refining operations, strengthening referral relationships and doubling down on customer education. The consistent message shared by the initiators is that sustainable growth comes from discipline, adaptability and a long-term perspective on business.
Tom Ahles, Chief Growth Officer at Edge Home Finance, said, “I have no control over what the market will do, whether it goes up or down. I want to make sure we are still gaining and capturing market share, which is the biggest opportunity for us as brokers. There is still potential to grow and provide superior value to broker partners and referral partners no matter what the market does. Our model is to empower each of our loan officers to be the CEO of their own company. Keep our heads down and Being focused on what we can do today, regardless of interest rates, is the most important thing for me.”
Staying competitive in this environment means staying proactive and staying abreast of market trends. This early easing cycle is a valuable time for originators to educate borrowers about long-term planning rather than short-term interest rate changes. Originators would also be wise to use this period to expand their product offerings and expand their operations to serve a broader range of borrowers, including through non-QM capabilities.
The role that non-QM plays in the current housing market
While traditional lending continues to serve most borrowers, non-QM products are increasingly meeting the needs of customers who fall outside conventional guidelines. Whether for self-employed borrowers with complex income streams or investors looking to access their equity, non-QM solutions have become an essential part of the originator’s toolkit.
Eric Lieberman, owner and broker at Palm Beach First Financial and Mortgage Co., said, “I’ve seen a huge increase in non-QM products. When I first got into the industry, it was maybe 10% of my sales. Now I’m probably 80% non-QM, 20% conventional. A lot more people are leaning toward non-QM products. They may have been hesitant before and thought they would pay a much higher rate, but someday if I let them do the comparison they realize that the rates are very competitive.”
White echoed Lieberman’s comments, emphasizing the importance of originators learning more about non-QM so they can confidently address the surge in borrower interest in this type of mortgage. “The non-QM market is picking up, but there is still a lack of education. Many brokers and lenders are not trained in non-QM, and you can’t just throw non-QM against the wall. You have to know the product,” he said.
As awareness and education about non-QM continues to grow, more and more brokers are recognizing the value of non-QM programs as a means to reach once-overlooked borrowers. Aguirre added that the non-QM space is a source of untapped potential. “There are so many opportunities. They are so underutilized,” she said. “Even now that we can offer lines of credit or bank statement products, most homeowners are at 50% equity. Imagine not being able to take advantage of that and reinvest it in another purchase or renovation, or use it to consolidate debt.”
Together, these insights highlight how non-QM has evolved from a niche option to a key driver of growth in the modern mortgage market.
Renewed momentum ahead
As the sector continues to adapt to the new interest rate environment, the outlook remains positive. Originators are finding new ways to connect with borrowers, diversify their offerings and strengthen relationships that will take them to the next phase of growth. Through continued education, adaptability and innovation, 2026 will be a year of renewed momentum and opportunity in the mortgage market.
Tom Hutchens is the president of Angel Oak Mortgage Solutions.
This column does not necessarily reflect the opinion of HousingWire’s editorial staff and its owners. To contact the editor responsible for this piece: [email protected].
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