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I'd bet more on the European carry trade, with various financial firms attempt to arbitrage the difference between negative interest rates in Europe and positive rates in the U.S. That creates a natural demand for short-term dollar loans:

https://news.ycombinator.com/item?id=21478251

is this to support specifically the emerging non-QM product ($20-ish BN so far in 2019) sector?

Wow. This is an interesting take.

I didn't know higher risk firms like hedge funds, PE firms, and REITs are borrowing so heavily in the repo market.

So basically, this is the Fed just handing out cheap money to these firms. It's socialism for the super-rich.