As the banking landscape faces turbulence, mortgage non-QM lenders have benefited from fleeing mortgage originators. This has enabled a larger portion of the market share, leading to bigger profits for lenders.

However, the added mortgage volume has also caused secondary-market pricing pressure, erasing profit margins and making it difficult to obtain liquidity. As a result, non-QM lenders must navigate around these challenges and assess the potential for future success.

It is clear that the non-QM lending market holds considerable potential for success. However, lenders must confront challenges like liquidity woes, profit-margin issues, and secondary-market pricing pressure in order to compete and remain profitable. The current situation provides unique insight into the future of banking and non-QM lender viability.

Key Points:
• Non-QM lenders have benefited from the pullback from the origination market, gaining market share and bigger profits
• However, this has caused increased secondary-market pricing pressure, reducing profit margins and making liquidity more difficult to access
• Non-QM lenders must confront these challenges while assessing the potential for future success

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