TY - JOUR T1 - REO-to-Rental Securitization Developments JF - The Journal of Structured Finance SP - 124 LP - 125 DO - 10.3905/jsf.2014.20.1.124 VL - 20 IS - 1 AU - Stacey M. Berger Y1 - 2014/04/30 UR - https://pm-research.com/content/20/1/124.abstract N2 - The panel discussed in detail the potential for the growth in securitization of single-family residential rental properties, as well as issues relevant to investors. The single-family rental securitization market is expected to grow with issuance from sponsors of very large institutionally owned and managed portfolios. The market is expected to expand to transactions composed of newly originated loans contributed by specialty finance companies on smaller portfolios of single-family residential rental properties. A number of lenders are actively pursuing this strategy. Although the single-family rental business has a long history, the aggregation of large portfolios of properties by institutional investors and utilization of capital markets financing is a recent development. These sponsors are developing the infrastructure and systems to address the challenges of leasing, managing, and maintaining the properties. As the market evolves from the initial, large, single-institutional owner/sponsor/manager deals to loans originated to multiple, smaller, owner/managers, a number of new issues and risks are introduced. The cash-flow mechanics, as well as collateral surveillance and reporting, need to be developed. Default management and special servicing for multi-borrower single-family rental loans take on a different character. Smaller sponsors will typically have more limited capabilities and resources.TOPICS: Asset-backed securities (ABS), legal and regulatory issues for structured finance ER -