The REO-to-rent sector has attracted capital and interest from several meaningful REITS, according to a recent Keefe, Bruyette & Woods report.

Colony Financial and Two Harbors are examples of two mortgage REITs that have actively invested in this sector so far. To date, these companies have invested approximately 15% and 5% of their respective equity in the sector. This equates to roughly $300 million of capital but over $700 million including investments by affiliates, according to the KBW report.

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