Panel Recap: The State of the DSCR & RTL Market: What’s Changed and What’s Next?
IMN RTL & DSCR Conference | Aventura, FL
At the IMN RTL & DSCR Conference in Aventura, FL, Roc Capital Co-Founder, Eric Abramovich joined a panel of industry leaders from private lending, asset management, and credit rating agencies to discuss the direction where residential investor lending is headed amid continued macroeconomic uncertainty. This discussion emphasized the durability of the RTL and DSCR markets, the accelerating role of institutional capital, and the operational standards required to scale responsibly as the asset class matures.
Across the panel, speakers emphasized that while capital remains abundant, it is increasingly selective, rewarding lenders that pair disciplined underwriting with operational excellence, data-driven risk management, and repeatable execution. These themes align with Roc Capital’s approach as the market continues to evolve.
Key Takeaways for our Clients and Partners
1. Operational strength directly impacts deal execution
Institutional capital is prioritizing lenders with disciplined underwriting and strong operational controls, but for lenders and third party originators, this shows up in faster approvals, fewer last-minute changes, and smoother closings. Panelists emphasized the importance of clear draw processes, disciplined extensions, accurate valuations, and transparency throughout the loan lifecycle.
TPO Takeaway: Working with lenders that have institutional-grade operations helps reduce friction, protect timelines, and improve borrower outcomes, especially on complex or time-sensitive deals.
2. RTL liquidity remains deep and dependable
The continued growth and normalization of rated RTL securitizations signals market stability and long-term capital support. Rather than constraining lending, these structures are helping ensure consistent liquidity across market cycles.
TPO Takeaway: Capital is abundant for responsible originations.
3. Market-specific underwriting is now the standard
With inventory increasing in certain regions and insurance costs becoming more volatile, lenders are underwriting more granularly at the market and property level. Broad, one-size-fits-all assumptions are giving way to real-time, location-specific credit decisions.
TPO Takeaway: Deals that are positioned with strong local market context, realistic exit assumptions, and accurate insurance considerations are more likely to move efficiently through the credit process.
4. Sponsor experience drives leverage and flexibility
Panelists reinforced that leverage alone does not define deal quality. Repeat sponsors with proven execution histories continue to access higher leverage and more flexible structures, even in transitional or higher-volatility markets.
TPO takeaway: Clearly presenting borrower experience, execution capability, and historical performance upfront can materially improve approval outcomes, leverage, and speed to close.
5. Structural housing undersupply continues to support investor demand
Despite short-term economic uncertainty, long-term housing undersupply remains a key driver of residential investor activity. These structural dynamics continue to support demand for both RTL and DSCR financing.
TPO takeaway: Residential investor lending remains an active, opportunity-rich space for originators aligned with well-capitalized platforms built to perform across market cycles.
