Ready Capital Announces Strong Q1 Results for Freddie Mac Business

Ready Capital reported robust performance in its Freddie Mac Small Balance Loan (SBL) business for Q1 2021, closing 62 loans worth $164 million and maintaining a pipeline exceeding $225 million.

Rhea-AI Summary

Ready Capital reported robust performance in its Freddie Mac Small Balance Loan (SBL) business for Q1 2021, closing 62 loans worth $164 million and maintaining a pipeline exceeding $225 million. This follows a successful 2020, during which $545 million was funded across 192 loans. Demand remains strong, with borrowing requests around $1.4 billion despite pandemic challenges. Notably, 71% of production aligns with affordability housing goals, showcasing the company’s commitment to mission-driven lending.

Positive

• Closed 62 Freddie Mac SBL and small multifamily Bridge-to-Agency loans worth $164 million in Q1 2021.
• Total funding reached $545 million through 192 loans in 2020.
• Strong market demand with approximately $1.4 billion in financing requests.
• 71% of current production supports mission-driven, affordability housing.

Negative

• None.

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Commercial Lender Builds on Outstanding 2020 Results

NEW YORK, May 10, 2021 (GLOBE NEWSWIRE) -- Ready Capital announced strong results for its Freddie Mac Small Balance Loan (SBL) business during the first quarter, extending into 2021 the increased volume of deals seen by the company in 2020. During the first quarter of 2021, Ready Capital closed 62 Freddie Mac SBL and small multifamily Bridge-to-Agency loans totaling $164 million in funding, with a pipeline of over $225 million. The recent quarter’s result builds on the company’s success during calendar year 2020, during which Ready Capital had closed 192 Freddie Mac SBL and small multifamily Bridge-to-Agency loans totaling $545 million in funding.

“The market demand for the Freddie Mac SBL product continued to be elevated into the first quarter of 2021 with approximately $1.4 billion in permanent and small multifamily bridge financing requests, capping off a strong 2020 despite headwinds from the pandemic,” said Anuj Gupta, President of Commercial Real Estate Lending at Ready Capital. “Furthermore approximately 71% of our production to date meets the criteria for mission-driven, affordability housing, aligning us with the long-term goals of the Agencies.”

In addition to announcing the volume of transactions, Ready Capital also highlighted the geographic diversification of the deals closed by its national lending team. During the first quarter of 2021, the company funded a significant volume of transactions in California, Illinois, Texas, and Colorado and closed additional deals in 10 more states.

Premier Transactions

Ready Capital closed $164 million during the first quarter of 2021 and $545 million during 2020 in Freddie Mac SBL and small multifamily Bridge-to-Agency loans. Individual deals ranged in size from $1 million to $7.5 million with terms ranging from 1 years to 20 years. Average LTV for the Freddie Mac SBL loans was approximately 65.  

Portfolio name	Number of deals in portfolio	Sum of balance (millions)		Notes
Portfolio 1	12	$40.0		Cash Out Refinance Partial IO, 7 Year term Southern California
Portfolio 2	3	$15.5		Purchase Amortizing, 10 Year term Chicago and suburbs
Portfolio 3	2	$4.4		Cash Out Refinance Partial IO, 10 Year term San Diego area
Portfolio 4	2	$2.4		Purchase Amortizing, 10 Year term San Diego area
Portfolio 5	2	$2.5		Purchase and Cash Out Refinance Amortizing, 10 Year term Greater Seattle

Large Balance Deals	Balance (millions)		Notes
Loan 1	$5.0		Purchase Amortizing, 10 Year term Arizona, very small market
Loan 2	$4.2		Purchase Partial IO, 10 Year term Dallas area
Loan 3	$3.5		Cash Out Refinance Amortizing 7 Year term Portland, Oregon region

About Ready Capital

Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services small to medium balance commercial loans. “Ready Capital” is a trade name encompassing ReadyCap Lending, LLC, ReadyCap Commercial, LLC, and other businesses operated by Ready Capital Corporation. Ready Capital lends on multi-family housing and commercial real estate, delivering value-add bridge loans and fixed rate financings for stabilized assets. Ready Capital is a non-bank lender that has originated over $7 billion in commercial real estate loans nationwide. Ready Capital is an approved Freddie Mac Small Balance Loan (“SBL”) lender, an SBA Preferred Lender and Ready Capital Corporation provides residential mortgage lending through its wholly-owned subsidiary, GMFS Inc. Headquartered in New York, New York, Ready Capital Corporation employs over 400 lending professionals nationwide. The Company is externally managed and advised by Waterfall Asset Management, LLC.

Mario Favetta
Executive Director, Marketing
Ready Capital
200 Connell Drive, Suite 4000, Berkeley Heights, NJ 07922
(862) 444-1557
mario.favetta@readycapital.com

FAQ

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What were Ready Capital's loan results in Q1 2021?

Ready Capital closed 62 Freddie Mac SBL and small multifamily loans totaling $164 million in Q1 2021.

How much did Ready Capital fund in 2020?

In 2020, Ready Capital funded $545 million across 192 Freddie Mac SBL and small multifamily Bridge-to-Agency loans.

What is the pipeline for Ready Capital's loans as of Q1 2021?

Ready Capital's loan pipeline in Q1 2021 exceeded $225 million.

What percentage of Ready Capital's production supports affordable housing?

Approximately 71% of Ready Capital's production meets affordability housing criteria.

What is Ready Capital's market demand for SBL products?

The market demand for Freddie Mac SBL products has reached about $1.4 billion in financing requests.