Mayer Brown advised EJF on landmark CRT securitization

Mayer Brown acted as counsel to EJF Capital LLC and its affiliates in connection with a first of its kind and Third Coast Bank’s first securitization of a $200 million commercial real estate loan made to one of America's largest private investment firms focused on real estate development.   

Third Coast Bank originated the loan, which is secured by interests in a portfolio of eleven Residential Master Planned Communities under development in Texas. Following the origination, Third Coast Bank created participation interests in the loan, one of which was sold to EJF CRT 2025-1 Depositor LLC (the "Depositor"), who subsequently sold that participation interest to EJF CRT 2025-1 LLC (the "Issuer"). The Bank retained the participation interests not sold to the Depositor.

It is expected that these transactions will reduce Third Coast Bank's risk-weighted assets as calculated under current risk-based capital rules. It is also expected that these transactions will reduce the ratio of loans for construction, land development and other land to the bank's total capital, a measure used by the bank's regulators to inform their supervisory approach to possible loan concentration risk. These transactions are expected to improve the diversity of the bank's on-balance sheet loan portfolio. This structure can be readily replicated for other banks.

Mayer Brown is one of the go-to firms in the United States for CRT Transactions and in particular for cutting edge and first of its kind transactions.

The Mayer Brown team was led by partners Tameem Zainulbhai, Matthew Bisanz, and Darius Horton.

Read the full press release here. 

 

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