Wall Street may sell more than $20 billion a year of bonds backed by rental homes as investors become comfortable buying securities tied to loans to small landlords, according to Ryan Stark, a director who runs mortgage finance at Deutsche Bank.
“The numbers could be fairly staggering,” Stark said at a Structured Finance Industry Group conference in Las Vegas. “This could be a $15 billion or $20 billion-plus-a-year kind of an asset class. Certainly if those smaller shops get more volume, you’re going to see even more in growth in that area.”
