In July alone, 6,144 people registered as self-employed incorporated, meaning they were employees of their own business, according to Federal Reserve Economic Data (FRED).
Hutchens said: “It’s very apparent that the number of self-employed borrowers is going to continue to rise, maybe at a faster pace.
“Non-QM is the solution for self-employed borrowers; and those self-employed borrowers that have made it through the pandemic are probably in a really nice position now as the economy continues to reopen.”
He said previous concerns surrounding non-QM loans had vanished, as the product had overcome stress tests, a global pandemic and an economic shutdown.
He said: “Now that we’ve gotten through the pandemic, the performance of the non-QM loans has stood the test of time and everything else that occurred in 2020. If anyone had a hesitation, due to their concern about the quality of the loans, those concerns are gone.