Rating criteria for securitizations of residential transition loans has helped boost investor participation in the sector, according to officials at Morningstar DBRS.

Conforming jumbo business at the GSEs fell 14.4% on an annual basis to $31.85 billion in 2025.

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

The conservative-majority justices appeared critical of the arguments from Trump’s Solicitor General D. John Sauer and expressed concern that Trump’s move could “shatter” the Fed’s independence.

The Supreme Court heard oral arguments this week in the case involving whether President Trump can fire Federal Reserve Governor Lisa Cook. Many of the justices appeared to oppose Trump’s effort.

Industry participants discussed factors that led to debt service coverage ratio loans becoming commonplace last week at a conference.

Amit Siroya, managing director of residential investments, asset-based finance, at Barings, said RTL originations could slow in certain pockets that are seeing volatility in home prices.

Non-agency lenders are expecting an increase in originations following the Trump administration’s announcement that the GSEs will add $200 billion to their MBS holdings.

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

Deliveries of conforming jumbos to the GSEs increased during the fourth quarter of 2025, though volume was down for the full year. (Includes data table.)