Residential Mortgage Banking Overview slide image

Residential Mortgage Banking Overview

Diversified Investment Strategy READY CAPITAL. Capital allocated opportunistically to highest ROE Operating Company across economic cycle Products: Strategy: Target Return: History: SBC LENDING AND ACQUISITIONS Investor SBC lending across 9 products (ground-up to stabilized properties, including middle-market construction lending and tax-exempt affordable housing) & portfolio acquisitions NIM from retained SBC portfolio supplemented by gain on sale income from Agency production and originations to borrowers 6-10%(1) Distressed acquisitions (2008), direct lending launch (2013), 1 of 12 Freddie Mac SBL license holders (2014), acquired bank bridge lending team (2015), affordable housing (2021), construction lending (2022) SMALL BUSINESS LENDING RESIDENTIAL MORTGAGE BANKING Owner occupied SBC lending through SBA 7(a), USDA & unsecured small business. 1 of 17 non-Bank 7(a) SBA lenders Revenue from gain on secondary market sale, net interest income and servicing fees on retained interest Prime +200-275bps Acquired in 2014 from CIT with originations beginning in 2015 Residential mortgage loan originations and servicing focused on agency market Revenue from gain on sale of production and servicing fees from retained MSR 100-175bps Acquired in 2016 as part of the Company's acquisition of ZAIS Financial Corp 1. Targeted unlevered return 4
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