Merchants Capital Executes Credit Risk Transfer on $543+ Million Multifamily Bridge Loans
Rhea-AI Summary
Merchants Capital (Nasdaq: MBIN) has executed a $543.5 million Credit Risk Transfer (CRT) secured by 41 performing multifamily bridge loans. This marks the company's second multifamily CRT and third overall, bringing their total securitizations to nearly $4 billion. The transaction, structured as a Credit Default Swap (CDS), includes $76 million in credit protection from a large institutional investor.
The portfolio comprises 53 properties with 7,040 units across 14 states, primarily concentrated in Indiana, South Carolina, and Illinois. This CRT supports Merchants Capital's production, which reached nearly $7 billion in 2023. Evan Gibson, EVP of Capital Markets, highlighted the platform's growth and efficiency in providing capital relief, enabling additional loan growth for the company.
Positive
- Executed a $543.5 million Credit Risk Transfer (CRT) on multifamily bridge loans
- Secured $76 million in credit protection from a large institutional investor
- Completed nearly $4 billion in securitizations through Capital Markets platform
- Achieved production of nearly $7 billion in 2023
Negative
- None.
News Market Reaction
On the day this news was published, MBIN declined 4.76%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
The transaction, which closed in March, was structured as a Credit Default Swap (CDS), with
"The Capital Markets team continues to add value, demonstrate innovation and fuel lending across Merchants Capital," said Evan Gibson, Executive Vice President, Capital Markets at Merchants Capital. "We are very pleased with the growth of our platform and efficiency in providing capital relief, which provides Merchants Capital with capacity for additional loan growth."
The transactions led by Merchants' Capital Markets platform, including this CRT, support Merchants Capital's production, which totaled nearly
To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
ABOUT MERCHANTS BANCORP
Ranked as a top performing
ABOUT MERCHANTS CAPITAL
With more than 30 years of success built on putting people first, Merchants Capital is a proven leader in financing for multifamily housing nationwide. Our licenses with Fannie Mae, Freddie Mac and HUD/FHA, in addition to our bank's balance sheet products, allow us to offer custom solutions with agility and ease of execution, expanding access to housing in meaningful and impactful ways. Recognized as a top five affordable lender, Merchants Capital pairs our comprehensive debt offerings with in-house tax credit equity to provide a one-stop-shop for developers and owners. To learn more about Merchants Capital, visit www.merchantscapital.com.
Forward-Looking Statements
This press release contains forward-looking statements which reflect Merchants Bancorp's current views with respect to, among other things, future events and financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control, such as the potential impacts of the COVID-19 pandemic. Accordingly, management cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although the Merchants Bancorp believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated in these forward-looking statements, including the impacts of the COVID-19 pandemic, such as the severity, magnitude, duration and businesses' and governments' responses thereto, on the Merchants Bancorp's operations and personnel, and on activity and demand across its businesses, and other factors identified in "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Merchants Bancorp's Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission. Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
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SOURCE Merchants Bancorp
FAQ
What is the value of the Credit Risk Transfer (CRT) executed by Merchants Capital?
How many properties and units are included in the MBIN CRT portfolio?
What was Merchants Capital's (MBIN) production value in 2023?
How much credit protection did Merchants Capital (MBIN) secure in this CRT transaction?
