RiskSpan releases credit risk model built for non-QM loans
RiskSpan launched Credit Model 7.1 for non-QM loans, trained on $87B UPB, as Q3 2025 issuance rose 97% to $20.9B.
RiskSpan's release of Credit Model 7.1, specifically designed for non-qualified mortgage (non-QM) loans, marks a significant development in the mortgage industry. The model was trained on an impressive $87 billion in unpaid principal balance (UPB), indicating a robust foundation for assessing credit risk in this sector. Non-QM loans, which don't conform to traditional mortgage standards, have been gaining traction, and the need for sophisticated risk assessment tools is growing.
The timing of this release is noteworthy, as Q3 2025 saw a remarkable 97% increase in non-QM loan issuance, reaching $20.9 billion. This surge underscores the increasing importance of non-QM loans in the mortgage market and the need for lenders and investors to manage associated credit risks effectively. By providing a more accurate and reliable credit risk model, RiskSpan aims to support informed decision-making in this expanding market segment.
As the non-QM loan market continues to grow, it's essential to watch how lenders, investors, and regulators respond to the increased availability of sophisticated risk assessment tools like RiskSpan's Credit Model 7.1. The model's adoption and impact on lending practices, as well as its potential to mitigate credit risks, will be crucial to monitor. Additionally, industry stakeholders should keep an eye on regulatory developments and how they might influence the non-QM loan market and the use of advanced credit risk models.
Originally reported by housingwire.com. ASIDNews adds analysis for real estate & property readers.