Ready Capital Announces Strong Q2 Results for Freddie Mac SBL & Small Bridge Business

Rhea-AI Summary

Ready Capital reported a robust performance in Q2 2021, closing 72 loans totaling $223 million, marking a 36% increase from Q1. The firm holds a strong pipeline of about $130 million for Q3. Total funding for the year reached approximately $1.6 billion across all products. Notable geographic activity included significant transactions in California, Texas, and Illinois. With over $7 billion in originated loans, Ready Capital remains a key player in the commercial real estate financing sector.

Positive

• Closed 72 loans totaling $223 million in Q2 2021, a 36% increase from Q1.
• Maintained a strong pipeline of $130 million entering Q3.
• Year-to-date funding reached approximately $1.6 billion across all lending products.
• Geographic diversification with transactions across 20 states, including major markets.

Negative

• None.

Commercial Lender Builds on Q1 2021 Results with Funded and Firm in excess of $500MM

NEW YORK, June 28, 2021 (GLOBE NEWSWIRE) -- Ready Capital announced growth in deal volume for its Freddie Mac Small Balance Loan (SBL) and small multifamily Bridge-to-Agency businesses in the second quarter of 2021, with an increase of more than 36% over the first quarter’s strong results. During the second quarter of 2021, Ready Capital closed 72 Freddie Mac SBL and small multifamily Bridge-to-Agency loans totaling $223 million in funding, with a firm pipeline going into the third quarter of approximately $130 million. The recent quarter’s result builds on the company’s success during the first quarter, during which Ready Capital, an Optigo lender, had closed 62 Freddie Mac SBL and small multifamily Bridge-to-Agency loans totaling $164 million in funding.

“The tailwinds of a strong market continued into Q2 with approximately $1.6 billion in funding across all of our commercial real estate lending products year-to-date,” said Anuj Gupta, President of Ready Capital Commercial. “Our success this quarter was once again attributable to the hard work of our origination, production, underwriting and closing teams as they delivered solutions for sponsors across a diverse range of deals.”

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 second quarter of 2021, the company funded a significant volume of transactions in California, Texas, Illinois, and closed additional deals in 17 more states.

Premier Transactions Second Quarter 2021

Ready Capital closed $223 million during the second quarter of 2021, following a strong Q1 2021 where over $160 million was closed in Freddie Mac SBL and small multifamily Bridge-to-Agency loans. During the second quarter, Ready Capital closed ten portfolio deals totaling over $77 million.   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 63.35 across deals 72 deals.  

Portfolio name	Number of deals in portfolio	Sum of balance (millions)		Notes
Portfolio 1	5	$19.2		Cash Out Refinance Partial IO, 10 year term LA area
Portfolio 2	2	$10.5		Cash out Refinance Amortizing, 10 year term Chicago area
Portfolio 3	2	$9.3		Cash Out Refinance Amortizing, 5 year term Greater NYC
Portfolio 4	2	$7.7		Cash out refinance Amortizing, 5 year term Southern California
Portfolio 5	2	$7.6		Cash out refinance Partial IO, 10 year term Houston area

Large Balance Deals	Balance (millions)		Notes
Loan 1	$6.3		Cash out refinance Partial IO, 7 year term Dallas area
Loan 2	$5.9		Purchase Amortizing, 5 year term Small market Texas
Loan 3	$5.7		Cash out refinance Amortizing, 10 year term Chicago area
Loan 4	$5.3		Cash out refinance Partial IO, 10 year term LA metro area
Loan 5	$5.0		Cash out refinance Amortizing, 5 year New York City area

Small Multifamily Bridge to Agency	Balance (millions)		Notes
Loan 1	$7.3		Purchase Full IO, 2 year term New Jersey, Top Market
Loan 2	$4.9		Purchase Full IO, 3 year term South Carolina, Standard Market
Loan 3	$4.7		Cash out Refinance Full IO, 1 year term California, Top Market

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. The company lends on multi-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 provides residential mortgage lending through its wholly-owned subsidiary, GMFS Inc. Headquartered in New York, New York, the Company 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