New York Mortgage Trust Acquires Constructive Loans, Expanding Business Purpose Lending Strategy

New York Mortgage Trust (NYMT) has acquired the remaining 50% stake in Constructive Loans, LLC, expanding its business purpose lending strategy. The acquisition provides access to over $1.7 billion in business purpose loans originated by Constructive in the past year. Constructive will continue as an independent subsidiary, retaining its leadership team. The acquisition aligns with NYMT's strategy to diversify and scale its earnings through enhanced origination capabilities and expanded access to proprietary origination channels.

New York Mortgage Trust, Inc. (NYMT) has acquired the remaining 50% stake in Constructive Loans, LLC, further cementing its position in the business purpose lending (BPL) market. The all-cash transaction, completed through a wholly owned subsidiary of NYMT, represents a significant milestone in the company's ongoing strategy to diversify and scale its recurring earnings through top operating platforms [1].

Constructive Loans, a leading originator in BPL for residential real estate investors, has demonstrated solid profitability and performance since its founding in 2017. Over the last twelve months ending June 30, 2025, Constructive has originated more than $1.7 billion in business purpose loans [1]. This acquisition provides NYMT with direct access to this substantial origination volume, establishing a more predictable revenue stream.

The acquisition aligns with NYMT's core strategy of investing in business purpose loans, supporting its expansion into the growing BPL market. By acquiring the remaining stake in Constructive, NYMT strengthens its presence within residential credit markets and enhances access to Constructive's proprietary origination channels and third-party distribution network [1].

Constructive will continue operating as an independent subsidiary under NYMT, with its experienced leadership team remaining in place. This operational continuity ensures that NYMT can leverage Constructive's established market position and expertise in BPL. The move is also expected to diversify NYMT's income sources beyond traditional mortgage investments, potentially reducing earnings volatility [2].

The acquisition is part of NYMT's broader strategy to leverage its mortgage credit expertise and capital market access to expand its footprint in residential credit markets. This vertical integration move secures both origination capabilities and distribution networks, potentially creating synergies between portfolio strategy and origination capabilities [2].

For NYMT shareholders, this represents a pivot toward more sustainable recurring revenue through operational business ownership rather than purely portfolio investments. The transaction underscores NYMT's commitment to strategic growth and diversification, positioning it well for future market opportunities.

References:

[1] https://finance.yahoo.com/news/york-mortgage-trust-inc-acquires-211000625.html
[2] https://www.stocktitan.net/news/NYMT/new-york-mortgage-trust-inc-acquires-remaining-interest-in-d6780z33y86l.html