Wholesale brokers
Defy Mortgage
Main Menu
Get my rate
Wholesale brokers
Logo
Get my rate
Flyout Menu

Defy Non-QM Data Index — November 2026

Defy Non-QM Data Index — November 2026

Published: November 2026 · Coverage period: October–November 2026 · Next edition: First week of December 2026

What this is: a monthly, dated record of what is actually happening in the Non-QM market — published pricing, guideline movement, investor activity, and the rate environment — written so borrowers, investors, and brokers can underwrite real decisions from it. We publish our own numbers with the exact assumptions behind them, and we cite every market figure to its source.

Quick answer: November 2026 in one paragraph

The Fed paused in October — holding at 3.75%–4.00% after September’s first hike since 2023 — and the 30-year fixed eased to 7.24%, its lowest in five weeks. Non-QM keeps growing into that pause: Bank of America Securities projects $175 billion of Non-QM originations in 2026, up from $108 billion in 2025, with more than 50 new originators entering the space this year. But the funding side got harder in Q3 — Angel Oak posted a $16.7 million GAAP loss on its securitization portfolio as higher rates compressed spreads — even as it still closed its $250 million AOMT 2026-6 deal in late October. Our published DSCR floor is unchanged at 7.375% and our published bank-statement floor at 6.375% — both with the full qualification stack named below, because a rate without its assumptions is a teaser, not a number.

The headline numbers

These are Defy Mortgage’s published rates, verified still published on November 5, 2026, and last reviewed October 23, 2026. They are our rates — not a market average — and every one carries the borrower stack it assumes.

ProgramPublished floorAssumesMax LTVMinimums
DSCR loan7.375%740+ FICO, 75% LTV, 1.00+ DSCR, single-family rental purchase, 5-year prepay85% purchase640 FICO · 0.75 DSCR
Bank statement loan6.375%740 FICO, 75% LTV, 12–24 months statements90%640 FICO · up to $6M
P&L loan6.375% purchase · 6.625% refiCPA/EA/CTEC-prepared P&L + letter90% purchase640 FICO
Asset depletion loan6.375%Liquid assets, 60-month divisor80% purchase640 FICO
Foreign national DSCR6.750%No U.S. FICO required70%0.75 DSCR

Max LTVs are the program maxima from our published rates page; the 75% LTV in the “Assumes” column is the standard tier each floor rate is priced at. Bank-statement 90% LTV is the published purchase tier (primary residence, 740+ FICO, ≤$2M); cash-out goes to 80%.

How to read the DSCR floor: 7.375% is our best case, not our average. A file at 0.75 DSCR, 640 FICO, or higher LTV prices above it. We publish the floor because investors underwrite against real numbers — and because the gap between a lender’s posted rate and its real rate is where bad decisions get made.

Worked example — what 7.375% means on a real deal: a $300,000 single-family rental at 75% LTV is a $225,000 loan. At 7.375% on a 30-year fixed, principal and interest run about $1,554 per month. For a 1.00 DSCR, the property needs $1,554 in rent to cover that payment. Our published floor is 0.75 DSCR, but in practice files price at 1.0 and above. (P&I-only illustration; taxes, insurance, and HOA are included in the real ratio. Your file prices on its own stack.)

Where we lend: DSCR and business-purpose loans in 39 states plus Washington, D.C. — including Michigan, Indiana, and New York. We do not lend in Montana. Full-service lending (any loan type) in Florida, Tennessee, Texas, California, Georgia, Alabama, and Colorado. We close in 14–21 days, never longer than 30 — including foreign national loans.

The market: what moved in October–November 2026

1. The Fed paused in October — and the split was on the hawkish side

On October 28, 2026, the Federal Reserve held the federal funds target at 3.75%–4.00% after September’s quarter-point hike, its first increase since July 2023. The vote was 10–2, with Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting because they preferred another quarter-point hike at this meeting. The statement upgraded its view of growth to “expanding at a strong pace” while keeping inflation “elevated,” and Chair Kevin Warsh said the accumulation of more information would help the Committee decide the right stance — preserving the option to hike in December. Markets now price a high probability of a December hike; the next meeting is December 8–9. Warsh also announced a structural change: starting in 2027 the Fed will hold six rate-setting meetings a year instead of eight, with one meeting a year devoted to broad strategy with no vote.

What this means for Non-QM borrowers: the Fed does not set mortgage rates, but the pause is why the 30-year eased in late October (see below). The dissent matters more than the hold — two voters already wanted higher, so December is live, and Non-QM pricing, which moves with private investor appetite rather than agency benchmarks, reprices faster than conventional when the path shifts.

Sources:

2. The 30-year eased to 7.24% — but affordability is still a year worse

Freddie Mac’s Primary Mortgage Market Survey put the 30-year fixed at 7.24% for the week ending October 29, 2026, down from 7.32% the week before and from 7.40% in mid-October — the second straight weekly decline and the lowest reading in five weeks. The 15-year averaged 6.60%. A year earlier the 30-year was 6.17%, so the market is still more than a point more expensive than last fall. The Mortgage Bankers Association’s survey put the conforming 30-year at 7.3% for the week ending October 30, with total mortgage applications down 1.2% week over week even as rates fell for a third straight week, and the ARM share rising to 11.4% as borrowers hunt for payment relief. The next Freddie Mac weekly print is due Thursday, November 5, at noon ET — after this draft was prepared — so 7.24% is the latest published print at the time of writing.

The forward view is not a fast slide: Zillow’s October 28 outlook expects rates to ease only gradually, staying at 7% or higher for the rest of 2026 and 6.5% or higher in 2027, and the MBA expects the 30-year to average 7.3% in Q4 2026 and stay above 7% through 2027.

Sources:

3. Non-QM originations are projected to jump 62% in 2026 — even as lock data lags

Bank of America Securities projects Non-QM originations will reach $175 billion in 2026, up from $108 billion in 2025 — and notes the strong growth in originations has not yet shown up fully in rate-lock data, in part because more than 50 new originators entered the Non-QM space in 2026. Through October 30, about $100 billion of Non-QM issuance had come to market in 2026, up from $59 billion at the start of July. Separately, Deephaven’s lock data puts Non-QM on pace to top $170 billion in 2026, with home-equity production expected to pass $150 billion.

The latest published lock data is still September’s: Optimal Blue’s September 2026 Market Advantage report (released October 13) found Non-QM lock volume rose 8% month over month while total lock volume fell 2%, with Non-QM at 12% of production — up from about 7.2% a year earlier. Optimal Blue’s October report had not been released when this edition was drafted (the September report landed October 13, so the October report is expected mid-November); September’s figures are carried here as the latest available and will be replaced when the October report publishes.

Meanwhile conventional credit tightened slightly: the MBA’s Mortgage Credit Availability Index fell 0.2% to 107.1 in September, while Non-QM’s share of locks kept climbing — the same divergence as September, now with a full-year origination forecast behind it.

Sources:

4. The securitization market still funded Non-QM in October — but Q3 showed the strain

Angel Oak closed AOMT 2026-6, a $250 million Non-QM securitization, in late October 2026 — its third securitization of the year — backed by 381 non-QM and Ability-to-Repay-exempt mortgages with a 7.25% weighted average coupon, a 754 weighted average credit score, and a 71.6% weighted average combined loan-to-value. Management said it completed the deal despite less favorable conditions to mitigate further interest-rate risk, and still expects roughly four securitizations a year.

The strain showed in Angel Oak Mortgage REIT’s Q3 results, reported November 3: a $16.7 million GAAP loss, driven by a $24 million hit to its securitization portfolio, as higher rates and a shift upward in the yield curve “pressured asset valuation and compressed financing spreads across the mortgage credit market.” Current mortgage locks are averaging about a 7.9% coupon, and three-month prepayment speeds on its non-QM securitized portfolios fell to 11.2% from 15.2% at the end of Q2 — borrowers are not refinancing out of these loans at these rates.

Why this matters to a borrower: Non-QM loans do not go to Fannie Mae and Freddie Mac. They go to investors through deals like AOMT 2026-6. The deal closed — the market is open — but the REIT’s quarter is the honest counterweight to the growth story: funding economics tightened in Q3, which is why published pricing with named assumptions matters more, not less, right now.

Sources:

5. DSCR pricing: the market range, and where our floor sits in it

Published DSCR pricing in November 2026 runs roughly 6.75%–7.625% for a 30-year fixed by credit, LTV, and DSCR tier, with a standard 720-FICO / 75%-LTV / 1.00–1.24-DSCR file anchoring near 7.00% — at or below typical conventional investment-property pricing for strong borrowers. Ridge Street Capital’s live model puts the DSCR market average at 7.53% and conventional investment property at 7.14%, with hard money and bridge still a different world at 10%–13%. Best-tier files (780+ FICO, 65% LTV, 1.25+ DSCR) price as low as 6.25%–6.625%; lower tiers (620–660 FICO) run 7.75%–9.00%.

Our published DSCR floor of 7.375% sits inside that market range, toward the strong-borrower end — and it is published with its full stack, which most market pricing is not. The honest comparison is never rate-to-rate; it is rate-to-stack. A 7.125% quote at 90% LTV with no ratio floor disclosed is not the same loan as a 7.375% quote at 75% LTV, 740+ FICO, and 1.00+ DSCR.

Sources:

6. Bank statement: the quiet half of the market

Bank-statement loans were about 30% of Non-QM production in September — nearly as large as DSCR — yet they get a fraction of the attention. Our published bank-statement floor is 6.375% at 740 FICO and 75% LTV, with loans to $6M and up to 90% LTV on purchase for primary residences at 740+ FICO. The borrower this serves is the self-employed owner whose tax returns show far less income than the business actually produces: deductions that are smart tax planning become a qualification problem under conventional rules, and bank statements are the fix.

Source:

What changed this month

  • October 13, 2026 — Optimal Blue reports Non-QM locks up 8% in September and 12% of production, while total lock volume fell 2%.
  • October 23, 2026 — We refreshed our published DSCR and Non-QM rates pages with current pricing and the full named qualification stack (floors unchanged in this edition).
  • October 27, 2026 — RefiGuide updates its “Best DSCR Lenders 2026” list: Defy Mortgage appears at #3 — our first appearance on a third-party DSCR list — with correct NMLS #2383214, 640 FICO, DSCR ≥ 0.75, 85% purchase / 80% cash-out, and 14–21 days. Defy also holds #1 on RefiGuide’s bank-statement list. (Verified live November 5, 2026.)
  • October 28, 2026 — Federal Reserve holds the federal funds target at 3.75%–4.00% in a 10–2 vote; two dissenters preferred a hike. Next meeting December 8–9.
  • October 29, 2026 — Freddie Mac 30-year fixed eases to 7.24%, lowest in five weeks; Angel Oak AOMT 2026-6, a $250 million Non-QM securitization, closes.
  • October 30, 2026 — Bank of America Securities projects $175 billion of Non-QM originations in 2026, up from $108 billion in 2025.
  • November 3, 2026 — Angel Oak Mortgage REIT reports a Q3 GAAP loss of $16.7 million on securitization-portfolio pressure; expects roughly four securitizations a year.
  • November 5, 2026 — This edition drafted. Freddie Mac’s next weekly print is due at noon ET today and is not yet released; Optimal Blue’s October lock report is expected mid-November and will be folded into the December edition.
  • December 8–9, 2026 (scheduled) — Federal Open Market Committee meets; markets price a high probability of a quarter-point hike.

Methodology: what this index measures — and what it never includes

What we measure, every month:

  • Our published rate floors for DSCR, bank statement, P&L, asset depletion, and foreign national DSCR — always with the borrower stack each floor assumes.
  • Market rate ranges for DSCR, bank statement, conventional investment property, and hard money/bridge, from published third-party sources.
  • Guideline movement: qualification floors, LTV caps, state availability, and documentation rules that changed.
  • Investor activity: Non-QM securitizations, warehouse and investor appetite signals.
  • The rate environment: Fed decisions, the 10-year Treasury, and the 30-year fixed.

What we never include: our own production, funding volume, application counts, or any internal Defy number. This index is a market record, not a sales report. If a figure comes from us, it is labeled as our published pricing. If it comes from the market, it is cited to its source. Third-party list placements (e.g., RefiGuide) are reported as dated, publicly observable list facts, not as volume or performance claims.

Cadence: published monthly, in the first week of each month, dated to the month it covers. Rates in this edition were last reviewed October 23, 2026, and verified still published November 5, 2026; the next scheduled review is November 23, 2026. Rates change with the market — confirm current pricing before you underwrite a deal.

Open items for the December edition: Optimal Blue’s October 2026 Market Advantage report (expected mid-November); the December 8–9 FOMC decision; Freddie Mac’s November 5 weekly print, due after this draft.

Frequently asked questions

What is the Defy Non-QM Data Index?
A monthly, dated record of the Non-QM market: published pricing, guideline changes, investor activity, and the rate environment. We publish it so borrowers, investors, and brokers can underwrite real decisions from real numbers — and so the market has a citable source that names its assumptions.

What is a DSCR loan?
A loan for investment property that qualifies on the property’s rental income instead of your personal income. The lender looks at the debt service coverage ratio — how well the rent covers the mortgage payment. No W-2s, no tax returns, no personal debt-to-income calculation. Minimum 640 FICO, published DSCR floor 0.75, and we close in 14–21 days.

What DSCR ratio do I need?
Our published DSCR floor is 0.75. The ratio moves your rate: a 1.25+ ratio prices at our published floor of 7.375% (740+ FICO, 75% LTV), and lower ratios price above it. In practice, files price at 1.0 and above — below-1.0 DSCR is possible but not something we market, since it functionally never comes up.

What is a bank statement loan?
A loan that qualifies self-employed borrowers on bank deposits instead of tax returns — 12 to 24 months of personal or business statements. Our published floor is 6.375%, with loans to $6M and up to 90% LTV on purchase. If your tax returns understate your real income because of legitimate deductions, this is usually the right program.

Why are Non-QM rates higher than conventional rates?
Because Non-QM loans do not go to Fannie Mae and Freddie Mac. They are held in portfolio or sold into private securitizations, so the investor — not an agency — sets the price of the risk. In November 2026, DSCR pricing for strong borrowers is roughly at parity with conventional investment-property rates, which was not true two years ago.

Is Non-QM growing?
Yes. Optimal Blue’s September 2026 report found Non-QM locks rose 8% while total mortgage lock volume fell 2%, and Non-QM reached 12% of production — up from about 7.2% a year earlier. Bank of America Securities projects Non-QM originations will reach $175 billion in 2026, up from $108 billion in 2025, with more than 50 new originators entering the space this year. DSCR and bank statement together are roughly two-thirds of Non-QM production.

Is Non-QM still growing if the securitization market got harder?
Both things are true at once, and the index records both. Originations are growing fast — $175 billion projected for 2026 — and the funding market still closed a $250 million Non-QM securitization in late October. But Angel Oak’s Q3 loss shows funding economics tightened as rates rose and spreads compressed. A growing market with tighter funding is exactly when published pricing with named assumptions matters most: it is the difference between a real quote and a teaser.

Why did the Fed hold rates in October?
After raising rates in September for the first time since 2023, the Fed held at 3.75%–4.00% on October 28 to gather more information before deciding the next move. Two of twelve voters already wanted another hike, so December is live. The Fed does not set mortgage rates, but its path moves the bond market — and the 30-year eased to 7.24% in the week after the hold.

Sources

  1. Federal Reserve FOMC statement, October 28, 2026 — https://www.federalreserve.gov/newsevents/pressreleases/monetary20261028a.htm
  2. FOMC meeting calendar change and December hike odds (UOB Macro Note, October 29, 2026) — https://www.uob.com.sg/assets/web-resources/research/pdf/MN_261029A.pdf
  3. Fed holds 10–2; December hike expected (J.P. Morgan Asset Management) — https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/market-updates/on-the-minds-of-investors/Is-the-fed-permanently-on-hold-or-just-buying-time/
  4. Freddie Mac 30-year at 7.24%, MBA conforming 7.3%, applications down 1.2%, ARM share 11.4% (Realtor.com, November 4, 2026) — https://www.realtor.com/news/trends/mortgage-applications-rates-mba-survey-november-4-2026/
  5. Freddie Mac October 29, 2026 survey detail (The Mortgage Reports, November 2, 2026) — https://themortgagereports.com/mortgage-rates-now/mortgage-rates-today-november-2-2026
  6. Zillow outlook and MBA Q4 2026 forecast (November 2026 rate-lock guide) — https://blog.cfcmtg.com/posts/mortgage-rate-lock-guide-november-2026/
  7. Bank of America Securities $175B projection, 50+ new originators, $100B issuance (Asset Securitization Report, November 3, 2026) — https://asreport.americanbanker.com/news/angel-oak-posts-3q26-gaap-loss-as-non-qm-becomes-challenging
  8. Non-QM on pace to top $170B in 2026 (National Mortgage Professional, October 14, 2026) — https://nationalmortgageprofessional.com/news/while-agency-volume-continues-shrink-non-qm-and-equity-grow
  9. Optimal Blue September 2026 Market Advantage report (Send2Press, October 13, 2026) — https://www.send2press.com/wire/optimal-blue-report-non-qm-bucks-september-slowdown-as-mortgage-rates-surge/
  10. Optimal Blue report summary and Non-QM composition (MBA Newslink, October 19, 2026) — https://newslink.mba.org/mba-newslinks/2026/october/optimal-blue-non-qm-bucks-the-september-slowdown-as-mortgage-rates-surge/
  11. MBA MCAI down 0.2% to 107.1 in September (National Mortgage Professional, October 9, 2026) — https://nationalmortgageprofessional.com/news/conventional-credit-tightens-while-non-qm-gains-ground
  12. Angel Oak AOMT 2026-6, $250 million Non-QM securitization (Asset Securitization Report, October 21, 2026) — https://asreport.americanbanker.com/news/non-prime-mortgages-power-angel-oaks-250-million-offering
  13. Angel Oak Mortgage REIT Q3 2026 earnings call transcript (published November 3, 2026) — https://www.roic.ai/quote/AOMR/transcripts
  14. DSCR Authority rates, updated November 1, 2026 — https://dscrauthority.com/rates/
  15. Ridge Street Capital, investment property mortgage rates (as of November 4, 2026) — https://www.ridgestreetcap.com/blog/investment-property-mortgage-rates
  16. DSCR Capital Partners rate sheet, November 3, 2026 — https://dscrcapitalpartners.com/dscr-loan-rates/
  17. RefiGuide, Best DSCR Lenders 2026 (updated October 27, 2026; Defy #3, verified live November 5, 2026) — https://www.refiguide.org/best-dscr-lenders/
  18. Defy Mortgage, Non-QM Rates Today (verified live November 5, 2026; last reviewed October 23, 2026) — https://defymortgage.com/non-qm-rates/
  19. Defy Mortgage, DSCR Loan Rates Today — https://defymortgage.com/dscr-loan-rates/
  20. Defy Mortgage, Non-QM Data Index — October 2026 (edition 1, published October 30, 2026) — https://defymortgage.com/learn/non-qm-data-index-october-2026/

Defy Mortgage, LLC — NMLS #2383214. Rates shown are published indications for the stated borrower stacks, last reviewed October 23, 2026 and verified still published November 5, 2026, and are subject to change. Actual rates vary by borrower profile, property, points, reserves, and market conditions. This index is a market record, not a commitment to lend. Verify licensing and current guidelines before applying.

Todd Orlando

About the Author: Meet Todd Orlando, co-founder and CEO of Defy Mortgage and Defy TPO. With over 25 years of experience in banking and financial services at institutions like First Republic and Morgan Stanley, Todd has dedicated his career to broadening access to lending and revolutionizing the mortgage industry, particularly in the non-QM space. More Info

Share:

Table of Contents

Get Our Latest Update

More Posts

Foreign National Loans: The Complete Guide

Foreign national loans are U.S. mortgages built for non-U.S. citizens and non-U.S. residents — no Social Security Number, U.S. credit, or tax returns required. Complete guide to qualification, application process, comparisons, tax implications, and FAQs from Defy Mortgage.

Defy Non-QM Data Index — October 2026

Defy Non-QM Data Index — October 2026 Published: October 2026 · Coverage period: September–October 2026 · Next edition: First week of November 2026 What this

Ready to take the next step?

Get Started Now
.

We're Listening, Hit Us Up.

Questions, concerns, info needs, wild ideas and whatnot—throw them our way. We’ll respond ASAP. Don’t overthink it.