Trending Thursday: Is the job description “financial press” or “palace guard?”

Trending Thursday: Is the job description “financial press” or “palace guard?”

From the Fed to FannieGate, plus the impact of banking regulations and more

Question remains: When will interest rates start rising?

3 different expert predictions

This is why you can't blame Millennials for low homeownership rates

Stop the blame game
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Investments / The Ticker

Rental market spurs bank competition

Keeps credit lines competitive

money flare
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Gary Beasley, one of the earliest to build a corporate rental-home business amid the U.S. foreclosure crisis, said in a Bloomberg article that the birth of a bond market backed by the properties is compelling banks to lend more cheaply to firms like his.

“It’s nice to have the competition of securitization to make the banks want to keep their credit lines competitive,” said Beasley, co-chief executive officer of Starwood Waypoint Residential Trust.

“We basically went to Citi and said, ‘The market’s changed, we’d be interested in talking to you about getting more proceeds and cutting our rate. If you’re willing to entertain that, we’d love to talk to you about it. If not, we’re interested in perusing a securitization, because it’s just too compelling,’” he said.

On Tuesday, Starwood Waypoint Residential Trust (SWAY) announced it purchased two separate pools of non-performing loans for $218.7 million. The total purchase includes 1,294 non-performing loans and 146 REO homes.

“NPL purchases continue to be a great channel for acquiring single-family homes in our target markets at attractive discounts while enhancing equity returns through alternative resolutions,” Beasley said.

Source: Bloomberg
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