ReadyCap to Originate Multifamily Small Balance Loans through Freddie Mac’s Recently Launched SBL Offering
Irvine, CA –ReadyCap Commercial, LLC (“ReadyCap”), a leader in small balance commercial real estate mortgage lending, today announced it has entered into a Seller / Servicer agreement with Freddie Mac to originate small balance multifamily loans in its newly launched Small Balance Loan (“SBL”) offering. The loans will be originated nationwide and will range from $1,000,000 to $5,000,000 in size and offer both hybrid ARMs and fixed-rate loan types.
“We are excited that Freddie Mac is making a commitment to the small balance market, particularly in the multifamily sector.” said ReadyCap’s CEO, Jim Going. “Nearly 40% percent of ReadyCap’s customers have benefitted from financing of their multifamily properties. The Freddie Mac SBL offering will enable additional borrowers to benefit from new products and favorable pricing.”
Freddie Mac SBLs are defined as loans on multifamily properties with five units or more ranging from $1 to $5 million. The securitization of SBLs will be similar to that of a standard Freddie Mac securitization structure, the K-deal, in which Freddie Mac transfers the first loss risk to private capital. Unlike the K-deal execution with the subordinate B-piece immediately sold to third-party investors, ReadyCap will be obligated to purchase the B-pieces secured by its underlying loans.
About ReadyCap Commercial LLC
ReadyCap Commercial (www.readycapcommercial.com), headquartered in Orange County, CA, is a non-bank, direct portfolio lender offering financing for small-balance commercial investment, multifamily and bridge loan programs nationwide. ReadyCap and its affiliates have offices in Irvine, CA, Austin, TX, Dallas, TX, Chicago, IL, Miami, FL, Charlotte, NC and New York City, NY. Available financing ranges from $750,000 to $10 million. Founded in 2012, ReadyCap is a wholly owned indirect subsidiary of Sutherland Partners, L.P., the general partner of which is Sutherland Asset Management Corporation (“Sutherland”). Sutherland, a REIT, is a real estate finance company that acquires, originates, manages and finances commercial real estate loans, and to a lesser extent, asset-backed securities where the underlying pool of assets consists primarily of commercial real estate loans and other real estate-related investments.
About Freddie Mac
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com. Twitter: @FreddieMac