Non-agency Alert: Non-QM Conference Recap: Fumbo-Jumbo

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Non-agency Alert: Non-QM Conference Recap: Fumbo-Jumbo

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Non-agency Alert

Non-QM Conference Recap: Fumbo-Jumbo

Non-QM Conference 18 June 2026

The IMN/Informaconnect Non-QM conference saw record attendance with over 650 Securitized Products Strategy

attendees this week. The record attendance lines up with a record volume projected for United States

this year at $100bn of Non-QM securitizations, and around $175bn originations Pratik K. Gupta

expected. The tone of the conference was constructive with some of the main questions CLO/MBS Strategist

and topics being: BofAS+1 646 855 9146

pratik.gupta@bofa.com

• With record volumes of Non-QM, where are these borrowers really coming Chris Flanagan

from? Some of the answers: Agency creep and jumbo-esque borrowers FI/MBS/CLO Strategist

BofAS

• All originators and issuers claimed top quality underwriting which begets the +1christopher.flanagan@bofa.com646 855 6119

question: who is really responsible for the elevated delinquencies? Andy Fan

CLO/MBS Strategist

• Dealers vs non-dealer shelves – what gives? BofAS

+1 646 855 9145

• Who is driving the demand side of the equation? We think: Insurance. andy.fan3@bofa.com

Akash Bhairav Gupta

• Potential mortgage fraud and risk mitigation. Areas under the scanner: MBS/CLOBofAS Strategist

Baltimore, Philadelphia and Sevierville. akashbhairav.gupta@bofa.com

“Fumbo Loans”

One aspect of the increased volumes within the non-QM securitization channel were

attributed to high quality, jumbo-like mortgages being securitized by some of the

issuers. We do see an increased share of high balance loans being included within Non-

QM deals. For instance, loans with >$1mm and >$1.5mm balance now compose 28%

and 15% of 2026 new originations respectively. This is up from 20% and 10% in 2018.