Ready Capital Corporation (RC.PR.E)

Overview

Ready Capital Corporation, originally established in 2007 and headquartered in New York, New York, is a significant player in the U.S. real estate finance industry. Initially known as Sutherland Asset Management Corporation, the company underwent a rebranding in September 2018, adopting its current name to better reflect its expanded services and market reach. As a real estate investment trust (REIT), Ready Capital Corporation specializes in a comprehensive array of financing solutions, focusing primarily on small balance commercial (SBC) loans, small business administration (SBA) loans, residential mortgage loans, and investments related to these financial instruments. The organization is structured around four core segments: Loan Acquisitions, SBC Originations, SBA Originations, Acquisitions and Servicing, and Residential Mortgage Banking. This strategic segmentation allows it to cater to a diverse client base, providing tailored financing solutions across different real estate categories. By distributing at least 90% of its taxable income to stockholders, the company enjoys the status of a real estate investment trust, offering it substantial tax benefits under federal law.

Products and Services

• Loan Acquisitions:

  This segment of Ready Capital focuses on acquiring both performing and non-performing small balance commercial (SBC) loans. The aim is to diversify the investment options and mitigate risks by incorporating a variety of loan performances within the portfolio.

• SBC Originations:

  Ready Capital originates SBC loans that are secured by stabilized or transitional investor properties. The process involves utilizing various origination channels to ensure a broad market reach. Additionally, the company specializes in originating and servicing multi-family loan products, catering to the specific financing needs of multi-family real estate investors.

• SBA Originations, Acquisitions and Servicing:

  Within this segment, Ready Capital acquires, originates, and services loans that are guaranteed by the small business administration (SBA) and are intended for owner-occupied properties. This ensures support for small businesses in need of financing solutions that come with the backing of a government guarantee, thereby reducing the risk involved for both the lender and the borrowers.

• Residential Mortgage Banking:

  The company originates residential mortgage loans through a variety of channels, including retail, correspondent, and broker. This versatility in loan origination methods allows Ready Capital to reach a wide demographic of borrowers, catering to their varied needs in securing home financing.