Temple View Capital Funding is preparing to sell $250 million in securitized bonds, collateralized by a pool of residential transition loans, one of the industry's growing sectors.
With a closing date scheduled for February 4, TVC Mortgage Trust 2026-RRTL1 consists of a two-year revolving period, during which it will use the proceeds from the issuance to buy 338 residential transition loans (RTLs).
During that time, additional RTLs can be added to the revolving portfolio, if they meet the criteria for series 2026-RRTL1, according to DBRS.
The deal will sell the bonds through four tranches of class A and M notes, according to Morningstar DBRS, the credit rating agency that started assigning ratings to the deals after finalizing its methodology in 2023. After closing, the deal has a legal final maturity of February 2041.
TVC Mortgage's notes, which will be generally interest-only, will repay investors sequentially.
DBRS assigns A, BBB, BB, and B to classes A1, A2, M1 and M2.
Backing the pool are 338 residential transition loans, according to DBRS. At the initial cutoff date of Dec. 31, 2025, the pool was composed of generally first-lien, fixed-rate, and interest-only (IO) ballon loans with original terms to maturity of six to 24 months, primarily, the rating agency said.
RTLs can fund small-balance commercial property loans, but TVC's portfolio focuses on residential properties and they break down into two types, according to DBRS. Fully funded loans have no obligation for further advances to the borrower, or they are structured so a portion of the proceeds allocated to a rehabilitation escrow account for future disbursement to fund construction draw requests.
Partially funded loans have a commitment to fund approved construction, repairs, restoration and protection of the property, DBRS said.
