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The MReport Webcast: Wednesday 6/8/2016

A drop in first-time homeownership in the U.S., due to the lack of affordable housing, has given single-family rental securitizations a credit positive boost. Moody's Investors Service said in a report that housing affordability for first-time homebuyers has been decreasing since 2000. This phenomenon has, in turn, provided a higher demand for rentals in the market.

 

The U.S. Census Bureau reported that the rental vacancy is now at 7 percent, down from 11 percent in 2009. Moody's believes that the drop in vacancy bodes well for the SFRs that we rate, especially regarding anticipated future enhanced rental revenue as Gen Y renters are a large component of SFR renters. This also portends higher liquidation proceeds on potential sales of SFR properties.

 

Rep. Jeb Hensarling, Republican from Texas and Chairman of the House Financial Services Committee, on Tuesday morning announced the GOP’s much-anticipated and much-talked about proposed alternative to Dodd-Frank, entitled the Financial CHOICE Act. Hensarling and other Republicans have been outspoken critics of the controversial Wall Street reform legislation. Dodd-Frank’s critics accuse the law of using a one size fits all approach that was meant to reform Wall Street but instead has adversely affected Main Street.

About Author: Seth Welborn

Seth Welborn is a Harding University graduate with a degree in English and a minor in writing. He is a contributing writer for MReport. An East Texas Native, he has studied abroad in Athens, Greece and works part-time as a photographer.
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