The Home Partners of America Trust platform is preparing for its third securitization of 2021, issuing a total of $ 902.2 million in certificates secured by a single loan, itself secured by a pool of 2,729 senior residential mortgages.
Home Partners of America 2021-3 Trust will issue the tickets from a pool of single-family rental properties (SFRs) and 139 townhouses, according to DBRS Morningstar, which noted that $ 833.2 million of the tickets will be valued. .
Morgan Stanley and Citigroup Global Markets are the primary managers of the deal, which will issue notes at seven tiers and under a sequential compensation structure. Subordination improves credit cash flow, DBRS said.
Home Partners, 2021-3, will pay interest on the $ 435 million, Class A certificates first, followed by payments from principal until distribution until principal is fully paid, then everything. amount of realized loss applied not reimbursed. The trust will repeat this distribution process for each class via the $ 64.9 million F certificates.
Midland Loan Services will provide the certificates service, and DBRS plans to assign ratings ranging from “AAA” to “BBB”, according to a pre-sale document.
The deal is expected to be finalized on December 22, DBRS said.
Home Partners Holdings, has leased some of the properties under its Purchase Right to Buy (RTP) program. During the first three to five years of the leases, occupants can purchase the properties, as long as the homes are in approved communities. Of 817 of the underlying properties, brokerage valuations exceed current RTP prices by approximately $ 33.2 million.
Monthly rents range from $ 1,250 to $ 3,530, with average monthly rents of $ 2,292, DBRS said. The average term of the leases is 12.2 months, of which around half remains to be run.
DBRS assumes a benchmark Net Cash Flow (FNC) of approximately $ 32.6 million, which is approximately 34.6% less than $ 49.9 million, which is the issuer’s underwritten NCF.
The underlying properties are spread across 21 states, with Colorado representing the portfolio’s largest concentration at 16.5%, according to brokers’ valuation. Georgia follows with a representation of 14.6%; then Florida, with 12.7%; Washington with 10%; and Texas, which represents 9.3% of the portfolio, completes the top five states by BPO.