Deutsche Bank is divulging into the REO-to-rental lending business, adding to it existing US commercial mortgage-backed securities (CMBS) conduit platform, according to an article in Reuters.

The articles explained that Deutsche’s first priority is getting the first REO-to-rental securitization off the ground, with the first deal appearing this year. 

REO-to-rental lending to smaller investors and mom-and-pop outfits is viewed as a natural fit with the bank’s CMBS conduit business. Loans would be in the US$10m to US$50m range, and as an exit strategy, they would eventually be pooled for securitization.