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Home » Store » Ratings » Rating Services Differ on Risks Posed by Rent-to- Own Securitization as First Deal Comes to Market

Rating Services Differ on Risks Posed by Rent-to- Own Securitization as First Deal Comes to Market

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The first security backed by proceeds from properties that have “rent-to-own” agreements has caused some divergence among rating services. Home Partners of America is preparing to issue a $508.88 million deal, which received preliminary AAA ratings from two firms. Moody’s Investors Service and Morningstar Credit Ratings issued presale reports on Home Partners of America 2016-1 last week. Kroll Bond Rating Agency followed with a warning that rent-to-own deals present more risks than single-family rental securitizations. The collateral for the security is...
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