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 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 |
