GMAC-RFC's acquisition of Dynex Residential, the model housing division of Dynex Capital, might set the stage for a model home lease-backed securitization program for RFC, pending an evaluation of financing options, said sources at the company.
"We have, over the years, explored this product," said Terry Farley of RFC. "If securitization proves to be the appropriate option, then absolutely, we will consider securitizing [model home leases]."
However, there are no immediate plans, Farley said.
RFC will continue to keep Dynex Residential's program in place, explained Mark Iverson, director of corporate marketing at RFC. Additionally, GMAC-RFC's strength will allow the Dynex Residential's lending operation to provide more working capital to the model homebuilder, increasing the receivable portfolio.
In related news, Dynex Capital recently announced that it executed a nonbinding letter of intent with an undisclosed buyer for the sale of its manufactured housing arm Dynex Financial.