Morgan Stanley Prepares $327.1M Business-Purpose RMBS Transaction
Morgan Stanley is preparing a $327.1 million business-purpose RMBS transaction, Morgan Stanley Residential Mortgage Loan Trust 2026-DSC3. The pool includes fixed- and adjustable-rate prime and nonprime mortgages underwritten to business-purpose guidelines, which DBRS Morningstar says are exempt from CFPB ability-to-repay and TILA/RESPA integrated disclosure rules. Newrez, Selene Finance, and Select Portfolio Servicing will manage most loan servicing, with sequential-pay cash flows and performance triggers tied to delinquencies and losses.