Setpoint Facilitates Diligence for $209 Million Landmark Rated Securitization of Residential Transition Loans

Historic RTL Securitization Highlights Setpoint's Industry-Leading Diligence and Technology

Setpoint, a leader in capital markets technology proudly announces its participation as the third-party review provider of a NYMT Loan Trust $209mm landmark rated Residential Transition Loan (RTL) securitization (NYMT 2024-BPL2) in May 2024. This significant achievement represents the first rated RTL securitization facilitated by Setpoint, and one of the earliest RTL transactions ever completed in the market. The transaction was rated by Morningstar DBRS, which notably became the first Nationally Recognized Statistical Rating Organization to finalize a methodology for RTL securitizations in October 2023.

The demand for housing in the United States continues to outstrip supply, driving the need for modernized and refurbished legacy homes. An industry of home flippers has emerged to satisfy this demand, supported by a responsive credit market. Since the first large RTL securitization in 2018, the asset class has seen significant growth, with total origination volumes approaching $10 billion in 2022.

For Setpoint, this transaction validates the company's robust diligence processes and cutting-edge capital markets technology platform. Setpoint’s expertise in asset-level reviews and precise calculations ensures that every value is independently verified according to the loan agreement terms reflected in their platform. This meticulous approach was integral to securing approval from rating agencies, the issuer, and the book runners involved in this transaction.

"We are excited to announce the successful closing of this rated RTL securitization," said Stuart Wall, CEO at Setpoint. "This milestone is a testament to our rigorous diligence and technological excellence, which ensure the accuracy and reliability of every securitization we undertake. Being named on a rated transaction requires passing stringent scrutiny, and this accomplishment highlights our capability to meet the highest industry standards."

About Setpoint

Setpoint is a leading fintech that aims to streamline the hidden, cumbersome processes behind billions in daily financial transactions. Backed by a16z, Setpoint is pioneering the transformation of capital markets workflows from outdated manual systems to efficient, automated solutions, significantly reducing costs and enhancing speed for both borrowers and lenders. Founded in 2021, Setpoint’s capital and technology platform (Asset OS and Capital OS) enables auto, consumer, SMB, real estate and other asset-backed borrowers to grow profitably. Setpoint’s platform helps originators and lenders save time, reduce risk, and optimize for capital efficiency. To learn more, visit setpoint.io.

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"Being named on a rated transaction requires passing stringent scrutiny, and this accomplishment highlights our capability to meet the highest industry standards," said Stuart Wall, CEO of Setpoint.