Single-Family Rental Securitization: The Evolution of a New and Growing Asset Class

Abstract

This article discusses the origins of the single-family rental (SFR) securitization market, the dynamics driving its growth, and how that market is continuing to evolve. It describes how foreclosures during the financial crisis created new interest in single-family rental properties from institutional investors; how some leading investors saw the potential for a new institutional asset class; single-borrower securitization transactions over the past two years; the first few multi-borrower securitizations; differences between single- and multiple-borrower deals; and the long-term sustainability of the SFR asset class

TOPICS: MBS and residential mortgage loans, CMBS and commercial mortgage loans