Originations of residential transition loans saw little growth at the start of this year, while debt service coverage ratio loan volume increased.

Speakers at the Mortgage Bankers Association’s servicing solutions conference discussed what makes a good non-agency servicer.

The overall levels of delinquencies, though, vary on a nominal and age-equivalent basis.

Investors are showing strong demand for non-agency MBS, leaving leaders of issuers optimistic.

With the potential for interest rates to decline further, originators in the RTL and DSCR space have varying strategies for dealing with volume changes.

Industry participants recently warned against common types of fraud involving DSCR mortgages and residential transition loans.

At a recent conference, lenders discussed what makes a good RTL and DSCR borrower, as well as common mistakes borrowers make taking out investor loans.

Investors in the secondary market are showing strong demand for debt service coverage ratio mortgages, even with delinquencies ticking up.

Players in the non-agency market are touting the benefits of thoughtfully using artificial intelligence for debt service coverage ratio loans and residential transition loans.

Morningstar DBRS has rated 30 securitizations involving residential transition loans since introducing rating criteria for the asset class in August 2023.