Firms that offer loans to small-time landlords have been slow to tap the securitization market. So far there has only been one transaction with a public credit rating, in December 2016. Yet bundling these loans into collateral for bonds provides attractive financing.
Lima One Capital, which originated much of the mortgages backing the $114 million RCO 2016-SFR1 Trust, is passing the lower funding costs along to borrowers. The company is cutting the base rate on its rental product by nearly 2.41 basis points, to 4.99% from 7.4%