New York Mortgage Trust Enhances Portfolio with Strategic Acquisition
New York Mortgage Trust Expands Its Business Purpose Lending
New York Mortgage Trust, Inc. (Nasdaq: NYMT) has taken a significant step forward in enhancing its business purpose lending strategy by acquiring the remaining 50% ownership interest in Constructive Loans, LLC. This all-cash transaction, finalized through a subsidiary of the company, marks a key milestone in NYMT's mission to diversify its earnings and strengthen its operational platform in the mortgage industry.
Significance of the Acquisition
The purchase of Constructive Loans is a natural progression following NYMT’s initial investment in the company in 2021. This acquisition not only underscores NYMT’s confidence in Constructive’s capacity for growth but also emphasizes its strategic importance in the residential credit market. With this transaction, NYMT significantly expands its access to Constructive’s innovative origination channels and a wide network for third-party distribution.
Constructive's Performance and Future
Founded in 2017, Constructive Loans has shown consistent profitability and strong performance. As of mid-2025, they have originated over $1.7 billion in business purpose loans. Importantly, Constructive will continue to operate independently as a subsidiary of NYMT, ensuring that its experienced leadership team remains intact and focused on driving future success.
Leadership Insights
Jason Serrano, CEO of NYMT, expressed enthusiasm regarding this acquisition, stating, “We are excited to take the next steps in our partnership with the talented team at Constructive. This acquisition represents an advancement in diversifying our recurring income.” He highlighted that this move significantly enhances NYMT's footprint in the residential credit markets.
Commitment to Credit Underwriting
Nicholas Mah, President of NYMT, welcomed the Constructive team, stating, “Constructive has effectively balanced strong loan performance with rising origination volume, positioning itself to address the financing needs of single-family investors.” Both companies share a dedication to rigorous credit underwriting, fostering optimism for future growth together.
Constructive's Value Proposition
Ben Fertig, President of Constructive, noted the strengths of joining NYMT, emphasizing its expertise and significant presence in capital markets. He stated, “We are thrilled to join forces with NYMT as we look to enhance our origination of top-tier business purpose loans, delivering exceptional value to our clients.” This partnership is poised to open new avenues for growth and service enhancement.
Expert Guidance and Legal Support
As part of the transaction, NYMT collaborated with several key advisers. BTIG, LLC acted as the exclusive financial advisor, while Mayer Brown LLP provided M&A counsel. Vinson & Elkins LLP supported NYMT in tax and employment matters connected to the transaction.
About New York Mortgage Trust
New York Mortgage Trust, Inc. operates as a real estate investment trust, focusing on the acquisition, investment, financing, and management of mortgage-related residential assets. This strategic approach allows NYMT to adapt and thrive within the constantly evolving market.
About Constructive Loans, LLC
Constructive Loans, LLC specializes in providing business purpose loans, particularly for rental and transitional purposes aimed at real estate investors. With headquarters in Oakbrook Terrace, Illinois, Constructive currently employs 165 people and offers services across 48 states and Washington D.C. In 2024, it received accolades as the NPLA Conference Private Lender of the Year, solidifying its position as a leader in the industry.
Frequently Asked Questions
What is the main focus of New York Mortgage Trust?
New York Mortgage Trust primarily focuses on acquiring and managing mortgage-related residential assets to enhance its investment strategy.
How has Constructive Loans performed since its inception?
Constructive Loans has exhibited strong profitability and has originated over $1.7 billion in business purpose loans, indicating solid growth and performance.
What are the projected benefits of this acquisition?
The acquisition is expected to improve NYMT's income diversification, strengthen its presence in the residential credit markets, and enhance access to unique origination channels.
Who are the key executives involved in this transaction?
Key executives include Jason Serrano (CEO of NYMT), Nicholas Mah (President of NYMT), and Ben Fertig (President of Constructive Loans), all of whom have expressed optimism about the future of this partnership.
Which organizations provided support for the acquisition?
BTIG, LLC served as the exclusive financial advisor, while Mayer Brown LLP and Vinson & Elkins LLP provided legal counsel in various aspects of the transaction.
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