Securitization underwriter FeatherStone Investment is structuring its first rental income securitization.
The securitization should be complete within the next 120 days.
"This is a huge structural achievement for FeatherStone Investment Group," says FIG General Counsel Scott Manson. "This also opens our other two securitization structures to the public."
There is no word on how large the pioneering deal will be, but FeatherStone will own 50% of the investment.
Manson states that they can now underwrite, structure, package and negotiate portfolios as a placement agent in the course of its business to special purpose entities in a manner that qualifies as a "true sale".
The FeatherStone private mortgage division provides funds to acquire or refinance rental income properties nationwide for borrowers.
FIG is also looking for equity participation deals.
"Through our rental income securitization, and property management expertise, investors can participate in a large-scale project without having to own the properties themselves," explains the FIG website. "At the same time, investors that want to participate in a U.S. housing market recovery can get involved in the rental market without having to deal with the hassles of the actual property management."