Capital allocated to legacy investments reduced by 17% since March 31, 2025.
Core segment's earnings available for distribution (EAD) was $25 million or $0.18 per share, with a 14.5% annualized ROE, compared to $28 million or $0.20 per share in Q1.
CoreVest Mortgage Banking achieved $6 million segment net income and a 34% annualized EAD ROE.
GAAP book value per share declined to $7.49 at June 30, 2025, from $8.39 at March 31, 2025.
Legacy investments recorded a $104 million loss, driven by negative fair value adjustments and accelerated asset sales.
Mortgage banking platforms delivered combined returns exceeding 20% and gain on sale margins above target for the fourth consecutive quarter.
Redwood reported a GAAP net loss of $100.2 million or $0.76 per share for Q2 2025, primarily due to accelerated wind down of legacy portfolio and associated fair value changes.
Sequoia Mortgage Banking generated $22 million segment net income with a 19% annualized ROE; Aspire loan volumes tripled sequentially to $330 million.
Strategic Expansion into Residential Business Purpose Lending via Constructive Acquisition
NYMT completed the full acquisition of Constructive on July 15, marking a milestone in expanding into residential business purpose loans.
Constructive's origination of over $5.2 billion in loans across 48 states, with a focus on high-quality, diversified portfolio including 93% rental loans and 7% bridge loans.
The acquisition is expected to be immediately accretive to EAD and will enhance recurring earnings and gain on sale income.
Management emphasized the long-term growth potential of the platform, with plans to scale origination volume and expand geographic footprint, aiming for a 15% annual equity return.
Dafinchi