IMN SFR Series, SFR Securitizations - Grow/Dwyer, Morningstar Credit Ratings

The single-family rental asset class continues to evolve. At least 29 single-family rental deals have come to market, with issuance over $13 billion. Multi-borrower securitization, including single-borrower and single-property loans, will drive the long-term growth in single-family rental issuance.

According to the October 2016 Morningstar Single Family Rental Research report

·       Rents for properties backing single-family rental securitizations rose by 4.6%.

·       Vacancy rates across single-borrower, single-family rental transactions edged up 5.0% in September.

·       Houston had the highest vacancy rate at 7.4%.

·       Some Florida MSAs have shown recent upticks in vacancy.

·       Average retention rates for full-term leases stayed in the mid-70s.

·       Morningstar is currently monitoring 25 single family deals that include over 97,000 properties.

Joining the podcast today to discuss single family rental securitizations is one of the authors of the report, Brian Grow, Head of Residential mortgage-backed security ratings at Morningstar

Also joining is

Kevin Dwyer, Senior Vice President of Morningstar Structed Credit Ratings.  Kevin rates RMBS and Single Family Rental transactions