Castlelake Prices $261.3M Residential Transition Loan Securitization, Castlelake Residential Mortgage Trust 2026-RTL1

At issuance, the initial collateral pool is comprised of 327 loans with an aggregated unpaid principal balance of $223.0 million, diversified across 23 states. The initial pool has a non-zero weighted-average (NZ WA) loan-to-as-repaired value ratio of 63.9%, NZ WA loan-to-cost ratio of 60.8% and a NZ WA FICO score of 742. The loans in the portfolio generally consist of first-lien, fixed-rate, interest-only balloon RTLs with original terms to maturity of 12 to 24 months. During the 24-month revolving period, the collateral pool will be subject to various eligibility criteria and concentration limits, including a minimum NZ WA FICO score of 730, a maximum NZ WA loan-to-as-is value ratio of 75% and a maximum NZ WA loan-to-cost ratio of 75%.

"This RMBS issuance represents an important milestone for Castlelake's capital markets program and our residential transition loan strategy," said Armin Rothauser, Partner and Head of Capital Markets at Castlelake. "We believe CLRES 2026-RTL1 demonstrates the strength of Castlelake's structuring capabilities, investor relationships and experience managing asset-backed securitizations and their underlying assets across market cycles."

"Demand for flexible private lending solutions remains strong as residential real estate investors seek capital to acquire, improve and bring housing inventory back to market," added Lucas Jackson, Managing Director, Head of Global Residential Mortgage Finance at Castlelake. "This transaction demonstrates Castlelake's ability to connect that demand with institutional investor appetite for differentiated, asset-backed credit opportunities."

CLRES 2026-RTL1 consists of four rated note classes: $213.4 million of Class A1 Notes rated A (low) (sf) by Morningstar DBRS, with initial credit enhancement of 22.40% and a fixed coupon of 5.682%; $19.0 million of Class A2 Notes rated BBB (low) (sf) by Morningstar DBRS, with initial credit enhancement of 15.50% and a fixed coupon of 6.184%; $17.1 million of Class M1 Notes rated BB (low) (sf) by Morningstar DBRS, with initial credit enhancement of 9.30% and a fixed coupon of 7.157%; and $11.8 million of Class M2 Notes rated B (low) (sf) by Morningstar DBRS with initial credit enhancement of 5.00% and a fixed coupon of 6.500%. Castlelake will retain $13.75 million of unrated Class XS Notes, representing a 5% horizontal residual interest in the aggregate fair value of the securities, aligning its interest with third-party investors in the capital structure.

Resfin Partners LLC ("Resfin"), a specialty real estate lender that provides bridge and term loan products to residential real estate investors and is majority owned by Castlelake, will serve as servicer and loan administrator for the transaction. Castlelake acquired a majority stake in Resfin in 2026 following a multi-year relationship with the platform. Through Resfin's correspondent origination channel, Eastview, and direct origination channel, Lendmarq, Castlelake-managed funds and accounts have acquired more than 3,400 senior structured loans representing over $1.6 billion of funded volume. Castlelake has structured investments in ResFin-sourced residential transition loans (RTLs), single-family rental/debt service coverage ratio (SFR/DSCR) loans, ground-up construction loans, and multifamily bridge loans.

With the completion of CLRES 2026-RTL1, funds and investment accounts managed by Castlelake will have issued approximately $9.8 billion in ABS since 2014. 

Deutsche Bank Securities is acting as sole structuring agent and joint lead bookrunner, alongside Goldman Sachs. Computershare is acting as the indenture trustee, paying agent, custodian, note registrar and certificate registrar. Mayer Brown provided legal counsel to Castlelake and KPMG provided tax guidance.

Important Notice Regarding Forward Looking Statements

Information herein includes forward-looking statements such as estimates, projections, forecasts, targets, and other similar information. These statements are based on the expectations of Castlelake using information, judgments, and assumptions believed to be reasonable in the circumstances. There can be no assurance that any forward-looking statement, estimate, projection, forecast, target, or other similar information will prove accurate.  Actual events or conditions may differ materially.

About Castlelake

Castlelake, L.P. is a global alternative investment manager specializing in asset-based private credit. Founded in 2005, Castlelake manages approximately $40 billion of assets on behalf of a diversified global investor base and is a strategic partner of Brookfield Asset Management Ltd., a leading global alternative investment manager with over $1 trillion of assets under management. The Castlelake team comprises approximately 260 experienced professionals, including 90 investment professionals, across eight offices in North America, Europe, the Middle East and Asia. For more information, please visit https://www.castlelake.com/.  

Contact

Castlelake Media Relations

media.relations@castlelake.com

Prosek Partners for Castlelake

Josh Clarkson/Remy Marin

+1 212 279 3115

jclarkson@prosek.com / rmarin@prosek.com 

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SOURCE Castlelake