In a high(er) rate environment, non-QM (non-qualified mortgage) lending continues to play an increasingly pivotal role. To explore how Acra Lending has adapted to these shifts, we sat down with Ryan Barrus, a key player in the company’s non-QM division. In this conversation, Ryan shares Acra Lending’s blueprint for broker growth, including insights on how Acra Lending navigated the pandemic, built relationships with referral partners, and developed tools that help brokers streamline non-QM loans.
HousingWire: Non-QM lending thrives in high-rate environments, especially during and after the pandemic. How has demand for non-QM products evolved, and how has Acra Lending adapted to these changes?
Ryan Barrus: We’ve always seen an uptick in activity when rates increase. After the initial surge in traditional mortgage demand wore off post-pandemic, brokers were eager to replace that volume, and many turned to non-QM products as a solution. What’s changed is the broker community itself. Non-QM lending is much more mainstream now compared to ten years ago, and brokers are more open to learning how it works.
For some brokers, there can be a short learning curve on their first Non-QM loan. But once a broker closes their first non-QM deal, the next ones are much easier, and the broker feels safer to sell the products, which helps snowball Non-QM demand.
HW: Non-QM customers often include self-employed individuals, investors, and foreign nationals. Could you share a success story of how Acra Lending has helped these unique borrowers?
RB: Absolutely. We recently closed a $3.3 million loan for a borrower in Colorado who had sold his business for $8 million. He was essentially retired, with plenty of cash, but traditional loan options weren’t available to him. We closed the loan in about three weeks.
Another success story involves a recent divorcee who received a lump sum settlement but didn’t have the income or alimony to qualify for a traditional loan. We did an ATR (Ability-to-Repay) in full loan for her. Similarly, we helped an ITIN borrower in Jackson Hole, Wyoming, close a $1.8 million owner-occupied loan using deposits from his counter-top business instead of relying on tax returns.
My advice to the broker community is call your AE with every deal you have, even if you think its impossible. A lot of folks don’t see a solution on a website or rate sheet but decide to call anyway and by asking the right questions we can often find a solution that wasn’t obvious.
HW: Referral partners, such as wealth planners and CPAs, are essential in the non-QM space. What strategies have you found effective for building these relationships?
RB: One of my most successful loan officers opened checking accounts at three different regional banks just to get in front of their loan officers. This gave him the chance to ask, “What do you do with your turn-downs?” The bank loan officers were thrilled to refer clients they couldn’t help, knowing that our loan officer wasn’t going to compete for the banking relationship.
That’s one specific example, but the general strategy is to get out in the community and put yourself in front of other professionals, like CPAs and divorce attorneys, who aren’t typically used to being courted for mortgage referrals.
HW: Non-QM products like bank statement loans and DSCR loans have become increasingly valuable in today’s high-rate market. How do you position these products to brokers and borrowers?
RB: Most of the time, when a broker contacts us for the first time, they panic because they have a fallout deal they thought would go conforming. They’re often just looking for a quick solution to that specific problem.
However, once we help them close that first non-QM deal, they become curious about what else we can offer. That curiosity often leads to strategy meetings, where we proactively discuss how to originate non-QM volume. We also show them how to pre-qualify bank statement loans before the borrower is even under contract or what the rent survey needs to come back at on a DSCR loan.
HW: Acra Lending recently launched its Glide portal. How does this tool help brokers streamline the non-QM loan process?
RB: Our Glide portal has been a game-changer. Brokers can now log in, get their bank statements analyzed ahead of time, submit an entire loan whenever they want, and track the progress from submission through funding—all in one place.
Since launching the portal earlier this year, we’ve seen a noticeable increase in pull-through rates and overall fundings. It’s made the process more efficient, cutting down on days to close, and it has improved broker retention.
HW: Looking ahead, what trends or challenges do you foresee in non-QM lending, and how is Acra Lending preparing to stay competitive in the evolving mortgage landscape?
RB: I don’t expect rates to drop dramatically anytime soon, and I think we’re in a “higher for longer” rate environment. That being said, non-QM lending is still growing despite higher rates.
We meet twice a week with our CEO and President to discuss trends and opportunities in the market. For example, we’ve launched P&L, No Ratio DSCR and 1099-only programs based on broker feedback. We’re nimble in creating new solutions as needed, and that has kept us ahead of the curve.
Looking at the bigger picture, non-QM lending has grown exponentially. Over the past ten years, Acra’s funding volume has increased by 30 times. While I can’t guarantee another 30x increase in the next decade, I think the trend will continue.
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