"Business purpose lending is experiencing a period of accelerated change. Rising securitization activity, new entrants, tighter regulatory expectations, and increased investor scrutiny are helping to reshape lenders' thinking about RTL and DSCR products. As we move toward 2026, the industry is examining both new opportunities and new pressures, prompting many to rethink efficiency, quality, and systems that support long-term scalability."
"Interest in business purpose lending, RTL and DSCR specifically, has grown meaningfully, especially following RREM's first publicly rated RTL securitization last year. That milestone drew new attention to the space, and we expect momentum to continue into 2026 and beyond as both RTL and DSCR are attractive products with tailwinds for future growth. While fix-and-flip lending has been around a long time, RTL as an asset class is still relatively young in public securitization takeouts."
Business purpose lending is undergoing accelerated change driven by rising securitization activity, new market entrants, tighter regulatory expectations, and increased investor scrutiny. Residential Transition Lending (RTL) and Debt Service Coverage Ratio (DSCR) products are experiencing growing investor demand, supported by recent publicly rated RTL securitizations and renewed interest in single-family rental property exposure. RTL remains relatively young in public securitization markets while DSCR loans were historically mixed with non-QM residential deals. The market focus includes creating housing inventory through rehabs, improving operational efficiency and loan quality, modernizing workflows, adopting hybrid valuation models, and strengthening oversight to enable scalable growth into 2026.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]