Morningstar DBRS has proposed loosening its rating criteria for residential MBS, given the strong performance of loans originated after 2008.

SEC proposes to exempt MBS, ABS from Rule 15c2-11; Amherst offering single-family rental securitization; Morningstar offers “bring your own loan” rating analysis; subprime MBS from 1999 downgraded.

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

Securitizations of residential property assessed clean energy transactions stopped in 2025, while commercial PACE deals surged.

The request came from the CRE Finance Council, the Mortgage Bankers Association and the Securities Industry and Financial Markets Association. The groups said the disclosure requirements have negatively impacted the commercial MBS market.

Feeder funds can ease the barrier of entry for investors into the residential mortgage loan market. Fitch set new rating criteria for the asset.

Fitch Ratings revised its rating outlook for Select Portfolio Servicing from negative to stable, citing a new owner for the nonprime servicer and other factors.

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

The criteria are looser than Fitch’s previous standards. The updates include higher penalty on mortgages with DSCR below 0.75x and an expanded modification outcome scenario to derive total loss severities to second-lien collateral.

Rocket is set to issue its second consumer loan ABS; Golub Capital issues rare long-duration CLO; large jumbo MBS from Chase; ratings performing as expected.