Mayer Brown Advised EJF On Landmark CRT Securitization
Mayer Brown Advised EJF On Landmark CRT Securitization
Mayer Brown advised 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.
These transactions are expected to:
- reduce Third Coast Bank's risk-weighted assets as calculated under current risk-based capital rules;
- lower the ratio of loans for construction, land development and other land to the bank's total capital—a key regulatory measure of loan concentration risk;
- improve the diversity of the bank's on-balance sheet loan portfolio;
- and serve as a readily replicable structure for other banks.
Mayer Brown is recognised as a go-to firm in the United States for CRT transactions, particularly those that are cutting-edge or first of their kind.
The Mayer Brown team was led by Tameem Zainulbhai (Partner), Matthew Bisanz (Partner), and Darius Horton (Partner).
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