Fidelis Investors has closed a Residential Transition Loan (RTL) securitization at $143.93 million, underscoring investor enthusiasm for housing, even during a period of economic uncertainty.
The two-year revolver, known as FIDL 2026-RTL1, involved 29 distinct lenders and was led by Fidelis' subsidiary Unitas Funding, LLC. A total of 330 RTls backed the securitization. FIDL 2026-RTL1 includes a mix of new and repeat investors.
Jefferies is acting as the bookruner and lead manager on the deal.
The move, which marks Fidelis' third RTL closing, speaks to the faith that investors have in the long-term fundamentals in the housing rehabilitation financing sector, according to the New York-based firm. This matches the need to find "stronger returns" on reliable assets, according to Fidelis.
"The launch of our third RTL securitization demonstrates not just how much faith investors have in this asset class backed by real, tangible assets, but how RTLs have quickly become a more institutionally embraced asset class," Michael Tessitore, managing partner at Fidelis, said in a statement.
"Investors realize just how serious our country's affordable housing shortage is and see the opportunity to support housing rehabilitation financing as one that tackles a national challenge while delivering reliable returns."
The housing shortage in the U.S. varies depending on who you ask. For example, Zillow estimatedthat the deficit reached 4.7 million units by the summer of 2025, with McKinsey projecting the shortfall to be at 8.2 million units in 2023 and possibly increasing to 9.6 million by 2035. But House Republicans are taking it to another level, claiming the gap is already at a staggering 20.1 million units.
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