Ellington Financial plans to increase non-agency issuance. The real estate investment trust last month issued its first non-QM MBS in over a year.

The real estate investment trust originates non-qualified mortgage, home equity and agency loans through its NewRez unit, and funds residential transition loans through its Genesis Capital affiliate.

Rithm Capital closed a $500.0 million MBS backed by rated residential transition loans through its Genesis Capital shelf. The deal is the second RTL securitization to receive a rating from Morningstar DBRS.

A challenging market for fix-and-flip homes has led more investors to seek financing on their projects.

The deal received a preliminary A rating from Morningstar.

Ratings for MBS with residential transition loans are helping to increase investor demand.

Insurance companies and European investors have shown a growing interest in MBS backed by expanded-credit mortgages. However, there is not enough supply to meet demand.

Morningstar DBRS assigned a preliminary A rating to the deal that includes 370 short-term loans with a principal balance of $158.4 million.

Fix-and-Flip lender Kiavi says it has already seen a boost in its pipeline in the first six weeks of the year.

Expanded-credit securitization is heating up and prime non-agency MBS issuers are also active.