By Amanda Callaghan, VP, Sales and Business Development, Class Valuation 

The lending environment is shifting: Refinance activity has cooled, and originators are increasingly leaning into purchase loans and alternative products like non-qualified mortgage (Non-QM) loans to maintain volume. 

These loans are attractive for borrowers with unique financial situations, such as self-employed professionals, real estate investors or those with inconsistent income streams. While offering lucrative opportunities for lenders, Non-QM loans also introduce nuanced complexity, and that’s where Class Valuation steps in. 

Class Valuation helps mitigate that risk by prioritizing quality control. With an internal audit process that reviews 100% of appraisals and leverages real-time feedback loops, Class Valuation minimizes revision requests and curtails delays. That consistency allows lenders to explore more flexible loan products without fearing the compliance pitfalls often accompanying Non-QM scenarios.

Understanding the Non-QM Appraisal Landscape 

Non-QM loans fall outside the lending guidelines set by Fannie Mae and Freddie Mac. As such, they often require more thorough documentation and a deeper, more nuanced understanding of the subject property and borrower profile. 

Appraising for Non-QM loans means venturing into territory that doesn’t always conform to the “check the box” processes appraisers are used to. This includes assessing unique property types and varied investor scenarios. The risk is higher, and so is the need for trusted appraisal professionals who can deliver consistency in a less standardized framework. 

For originators, having a reliable valuation partner who understands these nuances is more than a convenience; it’s a competitive advantage. 

How Class Valuation Supports Non-QM Lenders 

 Class Valuation is the nation’s largest Appraisal Management Company (AMC). Many of our staff appraisers handle Non-QM appraisals, meaning they fully understand the ins and outs of Fannie Mae Form 1007 (also known as the Single-Family Comparable Rent Schedule). 

 In addition, Class Valuation stands out for appraisal support in the Non-QM space for its: 

• Ongoing training—We invest in ongoing education and training to ensure our staff appraisers are compliant. This includes exposure to appraisal scenarios specific to Non-QM loans such as investment property valuations, multi-unit rentals, fix-and-flip projects and properties with limited comparable sales. Through this training, Class Valuation ensures that every report aligns with lender expectations, investor risk thresholds and regulatory standards, without compromising speed or quality.

• Advanced Technology and Data Tools — At the heart of Class Valuation’s value proposition is its investment in technology. From AI-assisted quality control to innovative analytics platforms, Class Valuation equips its appraisers with tools that accelerate workflow and reduce human error. These tech tools are especially critical in Non-QM scenarios, where appraisers must often reconcile property conditions with unconventional market data. Rather than relying solely on public records and MLS data, Class Valuation enhances appraiser accuracy through integrations with alternative data sources and proprietary models.

• Hands-On Client Support and Consultation — When a Non-QM deal is on the line, timely communication and problem-solving can make all the difference. Class Valuation offers a concierge-style client support system, ensuring originators can speak directly with review teams, escalate concerns and gain real-time insights into report status or property red flags. This high-touch approach removes friction from the appraisal process.

Giving Originators a Competitive Edge 

As market headwinds push lenders to explore more non-conventional avenues, Non-QM loans represent a necessity and a growth channel. However, the stakes are high. A delayed or low-quality appraisal can derail a deal, increase costs, and erode borrower trust. 

That’s why Class Valuation isn’t just delivering reports; it’s helping originators win deals. 

Whether you're working with a foreign national buying an investment condo, a self-employed tech entrepreneur or a seasoned house flipper, you need an appraisal partner who can assess value outside the Fannie/Freddie box. With Class Valuation, originators gain that level of confidence, turning challenging files into closed loans. 

By giving our appraisers the tools, training and support they need to thrive in a Non-QM environment, Class Valuation helps originators close loans and grow their pipelines, expand their borrower base and build reputations as flexible, forward-thinking lenders. 

Lenders that partner with Class Valuation report faster appraisals and gain peace of mind.  Class Valuation places a premium on the relationships among originators, appraisers and its internal review team, creating an ecosystem where trust drives performance. In today’s market — where every deal counts — that level of reliability is essential. 

With Class Valuation, you’re not taking a risk in entering the Non-QM space — you’re taking the lead.