Investors are looking for higher yields, and nonconforming mortgages are increasingly filling the bill.

"Not all homeowners have the credit history to permit a conventional refinancing, even though they may have substantial equity in their homes," said Robert C. Mercer Jr., president of American Financial Corporation of Tampa.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.