Benzinga | Jun 28, 2021 05:16PM EDT

Ready Capital Reports Growth In Deal Volume For Freddie Mac Small Balance Loan, Small Multifamily Bridge-To-Agency Units In Q2

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



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



Small Multifamily Balance NotesBridge to Agency (millions) PurchaseLoan 1 $7.3 Full IO, 2 year term New Jersey, Top Market PurchaseLoan 2 $4.9 Full IO, 3 year term South Carolina, Standard Market Cash out RefinanceLoan 3 $4.7 Full IO, 1 year term California, Top Market

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