US regulators launch probe into property bonds sold using overvalued assessments

New York

US SECURITIES regulators are investigating whether bonds backed by single-family rental homes and sold by Wall Street's biggest residential landlords used overvalued property assessments.

Radian Group's Green River Capital unit is one of the market participants that received a request for information from the Securities and Exchange Commission in March about broker price opinions, or BPOs, the company said in a regulatory filing late on Friday. Green River provides BPOs that are used to value real estate in securitisations.

The agency has been looking at whether BPOs were wrongly inflated, and similar letters were sent to other companies, potentially serving as a…