Kroll Bond Rating Agency projects that issuance involving residential transition loans will decline by 12% on an annual basis this year, continuing the sector’s uneven yearly output.

June’s growth follows a period of stagnation as bridge lending volume flattened out at the end of 2025 and into early 2026.

Kroll Bond Rating Agency last week assigned ratings on a $191.5 million deal of residential transition loans from Fidelis Investors.

Figure expects to benefit from acquiring technology as well as business-purpose loan production.

Although the growth curve flattened a bit in 2025, production of loans with terms of two years or less increased by 15% last year. (Includes one data table.)

More extensive rehab projects and growing investor demand have pushed some lenders to consider getting more lenient with some standards for residential transition loans.

Demand from insurance companies is helping fuel originations of mortgages underwritten with debt service coverage ratios.

The residential debt platform launched this week. It is led by a former executive at Fidelis Investors.

To thrive in the non-agency space, many lenders point to diversification, particularly in home equity products.

The Federal Deposit Insurance Corp. has announced a board meeting for March 19 to discuss two proposals to adjust capital requirements for banks.