Ready Capital Announces Strong Q1 Results for Freddie Mac Business
05/10/2021

Commercial Lender Builds on Outstanding 2020 Results

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 nameNumber of deals in portfolioSum of balance (millions)Notes
Portfolio 112$40.0Cash Out Refinance

Partial IO, 7 Year term

Southern California

Portfolio 23$15.5Purchase

Amortizing, 10 Year term

Chicago and suburbs

Portfolio 32$4.4Cash Out Refinance

Partial IO, 10 Year term

San Diego area

Portfolio 42$2.4Purchase

Amortizing, 10 Year term

San Diego area

Portfolio 52$2.5Purchase and Cash Out Refinance

Amortizing, 10 Year term

Greater Seattle

 

 

Large Balance DealsBalance (millions)Notes
Loan 1$5.0Purchase

Amortizing, 10 Year term

Arizona, very small market

Loan 2$4.2Purchase

Partial IO, 10 Year term

Dallas area

Loan 3$3.5Cash Out Refinance

Amortizing 7 Year term

Portland, Oregon region