With few foreclosed homes left to pick up on the cheap, the biggest landlords are buying, or building, new single-family homes to pad their portfolios; mortgages on these properties could show up as collateral in rental bonds.
Most of the collateral was acquired over the past year; that’s in contrast with the sponsor’s previous two transactions, in which a portion of the collateral was seasoned and refinanced from earlier transactions.
Mortgage servicers should approach efforts to overhaul their compensated structure with caution, as changes to the status quo "could have ripple effects across the entire real estate finance industry," warned Mortgage Bankers Association Chairman David Motley.
A group led by the National Fair Housing Alliance is suing Deutsche Bank, Ocwen Financial Corp. and Altisource Portfolio Solutions, alleging real estate owned properties in minority communities do not receive the same level of upkeep and maintenance as REO houses in white neighborhoods.
The Blackstone affiliate is cashing out over $200 million of home price appreciation in the process, resulting in a loan-to-value ratio that is unchanged from the original Colony American Homes transactions.