![]() Those transactions were also structured as interest-only loans, which KBRA describes as riskier because unlike amortizing loans they do not deleverage throughout the life of the loan.Ĭreated in 2015, FKH has significant experience in the SFR arena, indirectly owning and managing a portfolio of more than 24,600 homes across 23 markets and 15 states. KBRA points out that the FKH 2020-SFR1 loan has an loan-to-value of 90%, significantly higher than the average leverage of 77.5% for 18 comparable transactions. Nevertheless, “It remains to be seen what the overall impact of the COVID-19 pandemic will have on home prices and rental rates,” the report says. A total of 48 SFR securitizations rated by KBRA have been issued since 2013, including the current transaction, and so far none have experienced delinquencies and 24 have repaid in full prior to maturity. We are committed to helping renters find a home that has the space they need, the privacy they want and the peace of mind they deserve, with more than 50,000 homes in 25 desirable U.S. KBRA also notes that the securitization of single-borrower loans secured by SFR properties is a relatively new asset class in the U.S., and that the business model for large-scale institutional ownership and management of such properties is currently being tested for the first time through a recessionary period. Start your real estate search the right way by finding the best agent to work with in your area. We are FirstKey Homes, a leading and growing provider of well-kept single-family rental homes nationwide. Find real estate agency First Key Homes, LLC in INDIANAPOLIS, IN on. In its report the rating agency describes temporary rent relief that FKH has provided to renters and other factors potentially impacting cash flow and its rating analysis, and that “resulted in lower KBRA recoveries than what could have been achieved had the COVID-19 pandemic not occurred.” 6982 HILLSDALE CT, INDIANAPOLIS, IN, 46250. All three have seen COVID-19-related infection and mortality rates rise significantly in recent weeks. The nations premier home leasing company, provides professionally managed, updated homes for rent in desirable neighborhoods for a more inviting life. Kroll Bond Rating Agency’s presale report notes that the three largest state exposures, representing 57.3% of the portfolio, comprise Florida (24.9%), North Carolina (20.5%) and Arizona (11.9%).
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