Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

The digital journey starts at acquisition

Download this white paper to learn how to build a tech-enabled acquisition strategy that will directly contribute to a lender’s ability to maximize profitability and remain competitive.

IPO / M&AMortgageReal Estate

Ready Capital merging with Owens Realty Mortgage

Companies say combination will help grow commercial lending operations

Ready Capital, a real estate finance company that originates, acquires, finances and services small- to medium-sized balance commercial loans, including agency multifamily, investor and bridge, is set to grow its lending platform through a merger with Owens Realty Mortgage.

Owens Realty Mortgage focuses on the origination, investment, and management of commercial real estate mortgage loans, and now the two companies will be operating under the same umbrella.

According to the two companies, the deal will be a stock-for-stock merger. Under the terms of the deal, each Owens Realty share will be converted into 1.441 Ready Capital shares.

Upon completion of the deal, Ready Capital stockholders are expected to own approximately 72% of the combined company’s stock, while Owens Realty Mortgage stockholders are expected to own approximately 28%.

The combined company will operate under the Ready Capital name and is expected to have pro forma equity capital of more than $750 million.

The companies say the combination will “enhance shareholder liquidity and provide for operating leverage across the larger equity base.”

The companies also state one of the benefits of the deal will be more capital on hand to support the continued growth of Realty Capital’s lending platform.

Upon completion of the deal, Ready Capital Chairman and CEO Thomas Capasse will lead the combined company, while Frederick Herbst, Ready Capital chief financial officer, will remain in that role.

“This merger highlights our continued commitment to driving shareholder value and liquidity. We believe the transaction raises incremental capital with minimal tangible book value dilution and is accretive to forward looking earnings per share,” Capasse said in a statement. “The combined company will be in a stronger position to execute our business plan, improve operating and cost efficiencies and continue growth in a profitable manner.”

The deal is expected to close by the end of the first quarter of 2019, the companies said.

“We are excited to have reached an agreement for the sale of Owens Realty Mortgage to Ready Capital and believe that our shareholders will benefit from the better access to financing, larger size and greater resources of the combined company,” ORM President Bryan Draper said.

Most Popular Articles

Fannie Mae, and the housing market’s inflation problem

Another month of steadily increasing home prices and insatiable demand led Fannie Mae’s Economic and Strategic Research Group to alter many of its 2021 predictions – in particular, its outlook on the symbiotic relationship between the housing market and inflation measures.

Jun 16, 2021 By

Latest Articles

Doug Duncan and the housing market’s supply conundrum

The housing market has suffered due to high material prices, spend-anything buyers & a lack of supply. A return to normalcy will require big changes. HW+ Premium Content

Jun 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please