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, is significant for the real estate and property industry. The model was trained on a substantial $87 billion universe of loan data, providing a robust tool for lenders and investors to assess credit risk in this sector. Non-QM loans, which don't conform to traditional mortgage standards, have seen a surge in issuance, with a 97% increase to $20.9 billion in the third quarter of 2025.
This development matters for the lease industry as it indicates a growing appetite for alternative mortgage products. As non-QM loans become more prevalent, accurate credit risk modeling is crucial for lenders to make informed decisions. RiskSpan's model, with its extensive training data, can help mitigate potential risks associated with these loans. For lease professionals, understanding the creditworthiness of borrowers and the performance of non-QM loans can inform their own lending and investment strategies.
Looking ahead, it's essential to watch how the non-QM market continues to evolve and whether RiskSpan's Credit Model 7.1 becomes a standard tool for industry players. As the lease industry often intersects with mortgage markets, staying informed about trends and innovations in credit risk modeling can help professionals navigate potential opportunities and challenges. The next key indicator to monitor will be the performance of non-QM loans in various market conditions and how effectively RiskSpan's model helps lenders manage credit risk.
Originally reported by housingwire.com. LeaseNews adds analysis for real estate & property readers.