Tag Archives: Morningstar Credit Ratings

While delinquency rates were low, lease expirations trended higher; what effect did this have on vacancy rates in single-family rental securitizations?

What does the January data show about trends in delinquencies, vacancies, and turnover rate in the single-borrower, single-family rental class?

Why have property managers in SFR securitizations been steadily increasing rents more for renewals than for new tenants for vacant properties over the past two years?

The revival of jumbo RMBS issuance will drive the rejuvenation of the private-label RMBS market, but is such a revival is likely to happen soon?

While existing home sales experienced a major month-over-month decline in November above what was expected due to seasonality, the single-family rental market was alive and well during the month.

It has been slightly more than two years since the first single-family rental securitization closed. What has been driving the strong performances of SFR securitizations as of late?

October 2015 marks the two-year anniversary since the first SFR securitization, IH 2013-SFR1 (Invitation Homes), in October 2013. Since then, total issuance for 25 single-family securitizations in two years have amounted to $13.08 billion backed by loans on nearly 100,000 homes, according to Morningstar.

According to Morningstar, the retention rate for month-to-month leases improved for most of the transactions in July after dropping in 15 out of 17 transactions in June. The retention rates of scheduled lease expirations remained within Morningstar's expectations for July, in the mid-70s. 

Even with the higher-trending vacancy rates, monthly retention rates stayed within Morningstar's expectations, in the mid-70s to low-80s range.

Vacancy rates among single-family rental securitizations remained relatively flat month-over-month despite a general trend of a rising number of lease expirations, according to data reported by Morningstar Credit Ratings in its June 2015 Single-Family Research: Performance Summary Covering All Morningstar Rated Securitizations released Monday.