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2011 December

Market Forecast for 2012

December 22, 2011

The rollercoaster ride that the bond market strapped itself to in 2011 may continue in 2012. The question is will it be a ride of thrills or full-blown nausea?
 
The yield on the 10-year note is below 2%, and there does not seem to be any momentum in the market to push rates higher in the near term. In fact, we’re seeing the opposite. Some technical factors point to the 10-year yield dropping to 1.70% during the first quarter of 2012. The US economy is growing at a very anemic rate, and unemployment remains at an uncomfortably high level. These two points will likely entice the Federal Reserve to begin a third round of quantitative easing (QE3) in which they will buy treasuries and mortgage-backed securities to keep rates low.
Continued…

Rise in home construction suggests a turnaround

December 20, 2011

By DEREK KRAVITZ

The depressed housing market has held the economy back for four years.

No longer.

Home construction has finally begun a gradual comeback and should add to the nation’s economic growth in 2011, a turning point in the recovery from the Great Recession.

The main reason appears to be a positive consequence of the weak economy: Apartments are being built almost twice as fast as two years ago. Renting is the only option for many people who have lost their jobs, their homes or both…
Continued…

Love Funding Hires James Vanar as Senior Director – Originations

December 19, 2011

Washington, DC – Dec. 19, 2011 – Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced that it has hired James Vanar as senior director of originations.
 
Vanar will be based in Mission Viejo, California, and focus on arranging multifamily and healthcare loans through the U.S. Department of Housing and Urban Development mortgage insurance programs. He joins the company from Amerisphere Mortgage Finance LLC, where he was FHA national production manager. In previous positions, Vanar managed the financing and acquisition of apartment and senior housing developments.
 
“James was a natural fit for Love Funding given his extensive HUD experience and geographic focus on the U.S. West Coast,” said Love Funding President Mark Dellonte. “We’re very pleased and excited to have James join the Love Funding team. He will be a great addition to our team of experienced originators.”

Deal Insider: Orchard Park at Murphy

December 16, 2011

Originator: Joshua Hausfeld

Challenge: This Section 232 new construction project was one of the first to go through HUD’s new modified firm application process, which allows the borrower to submit a firm application without including architectural deal plans, specifications and final construction costs.

Solution: Hausfeld worked with the client to ensure they would have those final requirements ready when HUD signed off on the firm commitment, allowing them to move right into the closing queue and reducing their total processing time by as much as five months. The client committed to these significant costs ahead of receiving the firm commitment because of the confidence they had that Hausfeld and Love Funding would be able to execute the transaction successfully.

Deal Insider provides insights into Love Funding’s recent loan closings, with an emphasis on how the originator helped the client address a specific challenge.

FHA Hopes To Speed Up Tax Credit Deals Through Pilot Program

December 16, 2011

Click link below to read the full article on MFE.comThe Federal Housing Administration (FHA) will start a new pilot program in the spring charged with getting affordable housing deals done much more quickly.

The Tax Credit Pilot Program was originally mandated more than three years ago by the Housing and Economic Recovery Act (HERA) of 2008. But a change in administrations, and several bureaucratic hold-ups, have delayed its implementation. The program, modeled on the LEAN program for healthcare loans, will expedite the processing of deals using low-income housing tax credits (LIHTCs).

The FHA has made many programmatic strides in its desire to do more LIHTC deals—essentially making its process and requirements more borrower-friendly over the past three years. The agency even included a chapter on tax credit deals for the first time in its latest revision of the Multifamily Accelerated Processing (MAP) guide.

Read the full article on MFE Online.

Reprinted with permission from Multifamily Executive, a publication of Hanley Wood © December 2011

Calendar

Eastern Lenders Association Conference

Love Funding is sponsoring the Eastern Lenders Association Conference held March 5 – 7 at the Marriott Marquis Hotel in New York. Don’t miss ELA President and Love Funding Senior Vice President Jonathan S. Camps‘ welcoming remarks on Tuesday morning.

Mass Senior Care 2012 Spring Conference

Love Funding Senior Director Leonard A. Lucas will attend the Mass Senior Care 2012 Spring Conference & Trade Show held on Thursday, March 22nd at the Holiday Inn in Boxborough Woods.

NIC Skilled Nursing Investment Forum

Love Funding Originators Leonard A. Lucas, Joshua Hausfeld and Laura Saull-Smith will attend the NIC Skilled Nursing Investment Forum held March 25 – 27 at the Boca Raton Resort in Boca Raton, Florida. Don’t miss the panel discussion with Len Lucas on Monday, “Connecting Quality Care to Key Financial Indicators.” Click here for more information.

HFMA Region 5 Dixie Institute

Join Love Funding Senior Director of Hospital Finance Steven Hunt at the annual Region V Dixie Institute in Greensboro, GA, held February 21-24, 2012 at the Ritz Carlton Lodge Lake Oconee.

Market Commentary

Q1 2012 Market Commentary
The December nonfarm payroll report showed an unexpected increase of 200,000 jobs and a drop in the unemployment rate to 8.5 percent, the lowest level since 2009. Normally, this kind of good economic news would push rates up as bondholders sold their positions. Yet, this was not how things worked out...
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