CMBS/RMBS: U.S. Single-Family Rental Securitization Methodology

Executive Summary

This document describes KBRA’s methodology for rating Single-Family Rental (SFR) securitizations. These transactions have generally taken two forms to date. The first is transactions collateralized by a single loan made to a single borrower that are secured by multiple SFR properties, often numbering in the thousands, which are referred to as single-borrower SFR securitizations. The second is multi-borrower SFR transactions, which are collateralized by a pool of loans to numerous discrete borrowers, although it is not uncommon for securitizations to include one or more loans that share a related borrower. In regard to the latter transaction type, loans may vary considerably in size and be secured by a few properties or hundreds of assets. The methodology is intended for use in both the initial rating assignment and ongoing monitoring process for securities that pay principal and interest or only principal. Securities that pay only interest in these transactions are…