Cerberus CapitalManagement LP is closing down the U.S. rental-home financing businessof its FirstKey Holdings unit, Bloomberg News reported May 10, citing "peoplewith knowledge of the matter."
The business was not pulling enough loan volume to justify itsinfrastructure costs, according to the report. Shutting down the business will leadto 30 people losing their jobs.
The news outlet reported that FirstKey is still on the lookoutfor opportunities to make large investor loans. Its attention will be on its remaininginvestments, including investing on modified home loans, as it exits U.S. rental-homefinancing.
Cerberus Capital Management and FirstKey Holdings did not immediatelyrespond to S&P Global Market Intelligence's request for confirmation.