RiskSpan Releases Specialized NonQM Credit Model
RiskSpan has launched Credit Model 7.1, a new credit risk model designed for NonQM loans and structured finance investors. The model integrates into the RiskSpan Platform and offers detailed analysis categorized by documentation type.
RiskSpan announced the general availability of Credit Model 7.1, a purpose-built NonQM credit risk model delivered within the RiskSpan Platform. This release complements RiskSpan's existing NonQM prepayment model, establishing the company as a sole vendor offering a comprehensive suite of prepay and credit models for NonQM loans, integrated with a tape-to-cashflow workflow.
The launch coincides with significant growth in the NonQM market. NonQM RMBS issuance nearly doubled year-over-year in Q3 2025, reaching $20.9 billion, according to Morningstar DBRS. This surge follows an 800% increase in Fitch Ratings' rated Non-QM/Non-Prime RMBS portfolio between 2020 and 2023. However, this rapid expansion has outpaced available analytical tools, leaving investors and issuers underserved by legacy models not designed for NonQM's specific characteristics.
Credit Model 7.1 introduces a full transition-state credit model for NonQM collateral, with estimated transitions for Bank Statement, DSCR, Full Doc, and Other documentation types. The model incorporates ten loan- and borrower-level factors, including FICO and LTV, alongside three macroeconomic drivers. It was trained on approximately $87 billion in UPB across roughly 226,000 NonQM loans. The release also includes AI-powered data analysis tools and API access.
RiskSpan offers Credit Model 7.1 as a comprehensive solution that combines NonQM-specific prepayment and credit models, workflow tools, and proprietary historical data within a single platform. The model is now available to existing RiskSpan Platform and Loans Module clients.