With the private-label RMBS market currently stalled and the number of foreclosed homes and distressed borrowers at or close to record highs, Fitch Ratings said that investor, lender, and government agency interest is “clearly strong” for converting single-family real-estate-owned (REO) inventory into rental properties and securitizing the cash flow streams.

Fitch said today that it believes that REO-to-rental securitizations might have “some staying power,” although the product is still evolving from its current infant stage.

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