NQM Funding in the 2025 HMDA File: 2,542 Loans, $1.58 Billion, and Zero on Investment Property (DSCR)

The count that matters for a DSCR borrower: zero

Searches for “NQM Funding DSCR” come from investors and brokers deciding where to send a rental-property loan. Elsewhere we recounted lenders such as Kind Lending from the same federal file and found thousands of investment-property loans (see our Kind Lending HMDA 2025 page, 3,991 loans). We downloaded the loan-level file for NQM Funding's Legal Entity Identifier, with every action taken, and applied each filter we use on the other lender pages.

That is a result, not a gap in our download: the file has 4,063 rows and 2,549004Z576VEJBK3N72 is the only LEI the FFIEC 2025 and 2024 filer lists return for a name containing “NQM”. We do not know why investment-property loans are absent. The company's own pages describe DSCR programs, so either those loans are reported under a different institution's identifier, or they are not in this institution's file for another reason. HMDA does not say which, and we have not seen the company explain it. What we can say is narrower: nothing in the public federal file lets you measure NQM Funding's DSCR pricing, loan sizes or states, and any page that claims HMDA numbers for “NQM Funding DSCR loans” is not reading this file.

What the company says about its DSCR program

The company's website is written for mortgage brokers; the footer says the information is “intended for the exclusive use of licensed real estate and mortgage lending professionals”. The footer lists NMLS# 75597 and state licences including an Arizona mortgage banker licence, a Delaware lender licence and an Illinois residential mortgage licence. We did not open NMLS Consumer Access, so we have not verified that register. The pages we read do not state a headquarters address, so we do not give one.

On its DSCR program, the page of November 7, 2026 lists these features:

The products page lists several DSCR lines. It describes DSCR Supreme as “our most competitively priced DSCR option that caters specifically to the highly credit qualified investor for their business purpose loan needs”, alongside an Investor DSCR program, a DSCR Multi program for “borrowers with 1+ years of experience in owning and managing either a commercial or residential real estate property”, and a Foreign National program. These are marketing statements to brokers. We have not seen a rate sheet or guideline, and the pages give no rates. For how these terms compare with the market, see our DSCR loan requirements page.

What the file does show: a primary-residence non-QM book

If you are a broker or a borrower with a primary residence or second home, the 2025 file is informative. If you are an investor, treat it as context for the lender's size and pricing behavior, not as DSCR evidence.

Dollars grew faster than loans (18.3% against 11.7%) because the median loan rose by $40,000 (our arithmetic). The file reports note rates a thousandth below the usual quote, for example 7.374% where a rate sheet would say 7.375%; we use the file's values. Rates by purpose in 2025 were 7.374% on purchases and 7.375% on refinancings (7.624% and 7.874% in 2024). The lowest rate in the file in each year is 0.0%, which we treat as a reporting artifact on a few loans.

A worked example (our arithmetic). A $465,000 loan, 30 years fully amortizing, has a monthly principal and interest payment of $3,054.41 at 6.874%, $3,211.32 at 7.374% and $3,371.25 at 7.874%: the middle half of 2025 rates spans $316.84 a month at that loan size. These are closed-loan note rates, not a quote.

Products and structure

Every loan is closed-end and none is a reverse mortgage. 2,447 loans (96.3%) are one-unit properties, 84 two-unit, 8 three-unit and 3 four-unit; 10 are manufactured homes. The prepayment-penalty field reads NA on all 2,542 originated loans in both years, and the file does not define NA, so do not read “no penalty” into it. The jump in loans with zero reported loan costs (616 against 87) is a reporting change we cannot explain from the file. 1,980 loans (77.9%) show an automated-underwriting code of “not applicable”, 464 Desktop Underwriter and 97 Loan Prospector, which fits a book that is mostly outside agency automated underwriting (our reading).

Who bought the loans, and who submitted them

In 2025, 2,061 loans (81.1%) went to purchaser code 9, “other type of purchaser”, 416 to credit unions, mortgage companies or finance companies, 37 to commercial or savings banks, and 28 to Fannie Mae. In 2024 the figures were 1,788 (78.6%), 431, 26, 26 and 5 to Freddie Mac. Code 9 is a catch-all, so the file does not tell you whether those loans went to securitizers, investors or affiliates.

All 2,542 originated loans and 4,060 of the 4,063 records are coded “submitted directly” (code 1). For a lender that tells brokers to “become an approved broker”, that coding does not measure the broker share; it records how the application reached the institution that reports it. We would not read the channel field as showing whether you will deal with a broker.

Where the loans are

Florida was 25.2% of loans in 2025 (640 of 2,542) against 25.7% in 2024 (585 of 2,276); New York rose from 11.6% to 13.5% (our arithmetic). South Carolina, where the company's DSCR article is aimed, had 32 loans in 2025 and 31 in 2024. For the investor side of these states use our DSCR loan Florida page, which covers lenders that do report investor loans.

Denials: 691 in 2025

HMDA lets us compute a denial rate from the file's own action codes. We use denied applications divided by originated, approved-not-accepted and denied (withdrawn and incomplete files excluded). That gives 19.4% in 2025 (691 of 3,569) and 17.0% in 2024 (501 of 2,947). By occupancy, 644 of the 2025 denials were on principal residences and 47 on second homes.

Collateral led both years, 25.2% of 2025 denials (174 of 691, our arithmetic). A record can list up to four reasons: collateral appears in 188 of the 2025 denials and debt-to-income in 144. Because the file has no investment-property records, none of these denials is a DSCR denial; for denial patterns on rental loans see our DSCR loan denied page.

What the file cannot tell you

• Anything about DSCR loans. No investment-property records exist for this LEI, and HMDA has no DSCR flag even where they do.
• Credit score, rent, coverage ratio or program. Not public.
• Prepayment penalty and fees. The prepayment field reads NA on every originated loan.
• Current pricing. These are closed loans from 2025, not a rate sheet.
• Broker share. The submission field reads “direct” on every loan.

Complaints and records

On November 7, 2026 we queried the CFPB Consumer Complaint Database for “NQM Funding” in the company field: 20 complaints, all under “NQM Funding, LLC”. Eighteen are mortgage complaints, one is credit reporting and one debt collection; 3 were received in 2026, 1 in 2025 and 1 in 2024 (4 each in 2020 and 2021). All 20 show the company response “Closed with explanation”. Twenty complaints against a lender of this size says little by itself; the database lists complaints, not findings, and a wholesale lender draws complaints to brokers and servicers. We did not search state regulators or court dockets and we did not open NMLS Consumer Access, so this is not a clean-record statement. We used no consumer-review sites.

What a reader can do with this

1. If you are an investor looking at DSCR lenders, do not use this lender's HMDA numbers as evidence: there are none for investment property. Ask the broker for the program guideline and a current rate sheet, in writing, and for the prepayment clause in months and dollars.
2. Compare with lenders whose investor loans are public. Our Kind Lending page shows 3,991 investor loans, with median rate and income-0 loans, and our DSCR lenders ranked by loans page ranks lenders by 2025 volume. Use the same filter (occupancy_type 3) on any lender you consider.
3. Check the company's own claims. The 660 minimum FICO, 80% loan-to-value and 0.75 DSCR threshold are marketing statements for brokers; a floor of 0.75 means rent covers 75% of the payment, so expect more equity, reserves and a higher rate at that end (our reading, not a statement from the company).
4. Check the licence for your state. Use NMLS ID 75597 on NMLS Consumer Access and your state regulator, and confirm the legal name on your documents.
5. If you want a lender that markets directly to investors, the box below lists purchase, rehab and rental lenders. Kiavi pays us a referral fee when a loan closes through the button. NQM Funding is not an affiliate, and the counts above are the same either way.

FAQ

Related reads: Kind Lending HMDA 2025, DSCR lenders ranked by loans, DSCR loan Florida, DSCR loan requirements and non-QM loans.

Sources: loan-level data from the FFIEC HMDA Data Browser, 2025 and 2024 files for LEI 2549004Z576VEJBK3N72 (every action taken, no filter), downloaded November 7, 2026 through the public API; the FFIEC filer lists for 2025 and 2024; the FFIEC public loan application register data-field list (codes for occupancy, purpose, purchaser type, business purpose, submission and prepayment term); the NQM Funding website nqmf.com (home, products and DSCR pages, read November 7, 2026, quoted as the company's own statements); the CFPB Consumer Complaint Database API, queried November 7, 2026. The recount script and its output are in sources/. All percentages, differences and “our arithmetic” figures are calculated by us. We did not access NMLS Consumer Access. This is analysis of public documents, not investment, legal or tax advice. Compiled by CrowdfundedWealth on November 7, 2026.