Genesis Capital has issued more than $1 billion in rated residential transition loan securitizations since Morningstar DBRS started rating the securitizations in March.

Morningstar DBRS created rating criteria for securitizations of home equity investments in mid-2023. Since then, issuance has blossomed, and the sky’s the limit, according to industry participants.

The housing environment and new rating methodology have led to an improving securitization market for business purpose loans.