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.

After significant increases in securitization of residential transition loans in recent years, volume could decline this year.

Backflip closed its first residential transition loan securitization last week, a $95 million deal.

Cardinal Capital Group and Ellington Financial separately issued their first residential transition loan securitizations.

The $274.5 million issuance of residential transition loans was oversubscribed nearly five times.

The lawsuit alleges that PML engaged in a fraud scheme over four years that allowed it to sell loans multiple times.

Both lenders’ inaugural deals were oversubscribed, helping to diversify the companies’ capital sources.

Knock has issued a $100 million bond backed exclusively by bridge loan products.