Asked about the risk of acquiring non-QM assets, Davis points to industrywide borrower and collateral characteristics rather than the label. He cites an average 72% loan-to-value ratio, 740 credit scores, and debt-to-income ratios in the low 30s, arguing that borrowers have meaningful equity at stake.

Davis cites an industrywide average loan-to-value ratio of 72%
He cites average credit scores of 740
He places debt-to-income ratios in the low 30s
He argues that roughly 30% equity gives borrowers skin in the game
He says non-QM loans performed during COVID

“the average LTV like a 72 LTV FICO are 740 and DTI are in the low3s”
Tom Davis · 29:00

“they have skin in the game 30% down or 30 you know 30 you know 30% Equity”
Tom Davis · 29:30

#non-qm#credit risk#home equity#underwriting

Hot Take· 1

Hot Take18:00

Davis Expects Private Credit to Fill a Long Bank Retreat

Davis argues that regional-bank stress, low bank credit, and higher capital requirements are reducing bank participation in construction, multifamily, commercial, and other portfolio lending. He expects private credit and non-QM lenders to fill that gap for the next decade or longer.

Davis says bank credit was at a 20-year low
Banks had pulled back from construction and portfolio products
He points to higher capital-ratio requirements such as Basel Endgame
He expects the pullback to persist for 10 to 15 years
He expects private credit to enter the resulting gap

“Bank credit is at a 20-year low so banks have pulled back on a lot of these portfolio products”
Tom Davis · 18:00

“banks are actually pulling back in private credit is coming in that's where we kind of fill that void”
Tom Davis · 18:30

#private credit#bank lending#regulation#non-qm

Explainer· 3

Explainer09:30

Why Davis Sees Non-QM as an Entrepreneur's Mortgage Market

Davis says non-QM relies more on common-sense and manual underwriting than conventional or government channels. He is drawn to it because it can serve self-employed people, immigrants starting businesses, high-income borrowers, and real-estate investors whose circumstances may not fit agency products.

Davis became interested in Deep Haven as it helped create the post-crisis non-QM market
He moved fully into non-QM about three years before the interview
He cites 18 million self-employed people connected to 33 million businesses
He describes immigrants as a significant entrepreneurial borrower group
He cites investors as 26% of the prior year's purchase transactions

“nqm it's more common sense underwriting manual underwriting”
Tom Davis · 09:30

“I just love the product because you're serving entrepreneurial spirited borrowers”
Tom Davis · 11:30

#non-qm#self-employed#investors#mortgages

Explainer16:30

Two Lending Routes That Can Add Housing Supply

Davis connects the housing shortage with financing for new construction and rehabilitation. He says new construction had grown to 30% of purchase transactions because existing owners were reluctant to sell, while transition loans could return uninhabitable homes to the market.

Davis cites roughly one million existing units for sale
He cites a national housing undersupply of five million to seven million homes
New construction had risen from 15% to 30% of purchase transactions in two years
Low-rate existing owners were reluctant to sell
Fix-and-flip, bridge, and ground-up construction products can help add usable stock

“one way Originators could really take advantage of the market and differentiate themselves outside of the non-qm space is by helping bring housing stock to…”
Tom Davis · 16:30

“new construction is now 30% of purchase transactions today 30% two years ago was only 15%”
Tom Davis · 17:00

#housing supply#construction lending#rehabilitation#real estate

Explainer24:30

The In-House Capital Structure Behind Deep Haven

Davis attributes Deep Haven's position to long experience, in-house capabilities, and multiple ways to exit a loan investment. The company can securitize loans or place whole loans into funds managed by its parent, reducing dependence on a single capital-markets route.

Deep Haven had focused on the space for more than 12 years
Its parent managed more than $50 billion in assets
The wider platform included servicing and construction or renovation capabilities
Davis says the components are handled in-house rather than through third parties
The business can use securitization or whole-loan portfolio execution

“everything's done inhouse and all the components to to to our platform are inhouse we don't use third parties”
Tom Davis · 25:30

#deep haven#capital markets#securitization#mortgages

Story· 4

Story02:30

The W-2 Fax That Triggered Tom Davis's Mortgage Career

Soon after college, Davis asked a wholesale account executive to fax him a W-2 and current pay stub before considering the same career. He decided he could earn twice as much, flew from Ohio to Fort Lauderdale for an interview, and was hired on the spot while his wife was pregnant.

Davis began with degrees in finance and management
He validated the income opportunity with payroll evidence
He set a personal target of earning twice the producer's income
The move took place while his wife was pregnant
His first wholesale employer hired him during the interview

“this fax me is W2 and his current pay stub”
Tom Davis · 03:00

“if this guy's making X right I'm going to make two x”
Tom Davis · 04:30

#career change#mortgage sales#income validation

Story05:00

How a USDA Niche Carried Davis Through the Financial Crisis

When non-agency products disappeared during the financial crisis, Davis joined a small rural-housing division at JP Morgan Chase. He specialized in USDA loans for eight years and says he bought more of them than anyone else in the country, giving him a needed product in a slow market.

The financial crisis removed many mortgage products
Davis moved into Chase's rural-housing division
USDA loans offered 100% financing with no money down
He spent eight years building expertise in the niche
He says down markets have been periods of strong performance for him

“the riches are in the niches”
Tom Davis · 05:30

“in down markets is where I really Excel because it's in down markets you have to hustle out hustle everyone else”
Tom Davis · 05:30

#usda loans#financial crisis#career resilience

Story06:00

The Family Experience Behind Davis's Drive

Davis was born in Cuba to an American father and Cuban mother, then came to the United States. Watching his mother work multiple jobs made a lasting impression, and he began mowing lawns and selling candy at 13 because he never wanted to feel the same lack.

Davis was born in Cuba and later came to the United States
His father worked in the US government
His mother worked multiple jobs
He began earning money at age 13
His early work included mowing lawns and selling candy

“I was actually born in Cuba”
Tom Davis · 06:00

“my mother's who's really driven me”
Tom Davis · 07:00

#family#immigration#entrepreneurship#motivation

Story07:30

A Sixth-Grade Teacher Started Davis Investing

A middle-school math teacher who also advised local educators introduced Davis to mutual funds in sixth grade. The teacher met his parents, helped him begin investing, and shaped his early interest in finance and the value of giving money time to grow.

The teacher asked which students wanted to become millionaires
A small group stayed after class to learn about mutual funds
The teacher met Davis's parents before helping him invest
Davis began investing while in sixth grade
He later opened mutual funds for both children soon after they were born

“he started teaching us about mutual funds in sixth grade”
Tom Davis · 08:00

“since sixth grade I started investing money”
Tom Davis · 08:30

#financial literacy#mutual funds#early investing

Q&A· 4

Q&A22:00

Why Davis Still Grinds After Becoming Successful

Davis says his family, children, and sales team sustain his motivation. He sees the work ethic reflected in his children and describes his relationship with the team as service: they do not work for him; he works for them.

Davis says he works every day for his family and children
His daughter goes to the gym with him
His son was entering college to study finance
He says his team works intensely throughout the week
He frames leadership as working for the team

“I work every day for my family and my kids”
Tom Davis · 22:00

“they don't work for me I work for them”
Tom Davis · 22:30

#motivation#family#servant leadership

Q&A33:30

Davis's Approach to Raising Driven Children

Davis emphasizes education, sport, extra mathematics, parental example, and repeated conversations about effort. He supports his children but tells them that he will not simply give them what they want; they must go out and earn it themselves.

Davis prioritizes education
Sports introduced competition
Extra mathematics built discipline and helped his children academically
His children see how hard he works
He promises support without promising to provide every desired outcome
He urges parents to show love and give advice consistently

“if you want something you got to go out there and get it like dad's not going to give it to you you got to…”
Tom Davis · 34:30

“I'll support you I'm behind your back I always will be there”
Tom Davis · 34:30

#parenting#grit#education#discipline

Q&A37:30

How Davis Would Build Wealth Again at Age 20

If he were 20 again, Davis says he would buy more real estate and invest more money across the market for long-term compounding. He views property as an inflation hedge amid housing undersupply and says he would replace spending on unnecessary items with asset purchases.

Davis would buy more real estate
He would invest more money in the market
He sees property as a hedge against inflation
He expects housing undersupply to support appreciation and rent growth
He recommends building financial literacy and investing over long periods

“instead of wasting or spending my money on stupid stuff i' I'd invested in assets”
Tom Davis · 38:30

“work on your financial literacy”
Tom Davis · 38:30

#wealth building#real estate#investing#financial literacy

Q&A39:00

Davis: College Depends on the Goal, but Mentors Always Matter

Davis supports college when the degree fits the person's intended path, using his son's finance degree as an example. He also says people can become highly successful without college and recommends surrounding yourself with accomplished mentors for career and business advice.

Davis believes college remains important for the right person
He connects the value of a degree to what the student wants to do
He knows highly successful people who did not attend college
He recommends directly asking accomplished people for mentorship
He has relied on mentors throughout his own career

“it depends on what you're going to school or what you want to do in life”
Tom Davis · 39:00

“surround yourself with mentors and and and lean on them and ask them for the advice”
Tom Davis · 39:30

#college#education#mentorship#career

Takeaway· 1

Takeaway35:30

The 'Wake Up Broke' Prompt Davis Uses to Stay Hungry

A successful mentor sends Davis an early-morning prompt that asks how he feels. Davis answers that he feels broke, using the exchange as a deliberate cue to work with urgency despite prior success.

The phrase came from a highly successful friend and mentor
The mentor sometimes texts at four in the morning
Davis answers that he feels broke
The ritual is intended to preserve urgency and effort

“wake up broke if you wake up broke you'll never be broke”
Tom Davis · 36:00

“hustle as if you're broke every day and you'll never be broke”
Tom Davis · 36:00

#motivation#mentorship#work ethic

Frameworks in this episode

Investor-Share Under-Index Audit

Product-Expert Advisor Positioning

Top-5% Realtor Referral Targeting

Insights & moments

⚡Myth Buster· 1

Davis Rejects the Idea That Non-QM Automatically Means High Risk

◆Hot Take· 1