Newsletter

From our Newsletter: HUD MIP and MAP Guide Changes

Love Funding Q1 2016 Quarterly Newsletter HUD Changes

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It has been a busy couple of weeks for HUD, and we wanted to share with you some recent changes that will impact how we underwrite your loans. The most significant changes include:

  • Lower MIP rates for qualified affordable and energy efficient properties
  • The issuance of the new MAP Guide on January 29

This newly published information will provide savings for many qualified properties. We’ve included an overview below, and please contact your Love Funding originator to learn more.


Reduced MIP Fees For Qualified Properties

For commitments issued or reissued beginning April 1, 2016, many transactions will now qualify for lower MIP rates. Additionally, HUD Deputy Director Dan Sullivan advised that if a loan is in processing (i.e. the loan did not and will not close before April 1), lenders may submit amended Firm Commitment Applications reflecting the new MIP if the lender anticipates closing the loan on or after April 1 and the property and financing terms meet relevant requirements. Continue reading


New Guide for Multifamily Accelerated Processing

HUD released the new MAP (Multifamily Accelerated Processing) Guide, which will take effect on May 28, 2016, and applies to all loans for which an initial application for Firm Commitment is submitted on or after the effective date.

Loans where the Firm Commitment application was submitted before the effective date are subject to the provisions of the MAP Guide published in 2011; however, HUD will accept lender requests to revise Firm Commitment applications already in processing to reflect provisions of the revised Guide that are appropriate for a particular transaction. Similarly, Multifamily Regional Center and Hub Directors may consider requests to amend Firm Commitments already issued but not yet closed; such requests may or may not be approved depending on the specific transaction terms. Continue reading

 

2016-02-02T22:40:11+00:00Newsletter|

From our Newsletter: Power of Love

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Last April, Love Funding celebrated our 30th anniversary by giving back to our communities through volunteer work and charitable donations. This April, we introduced a friendly challenge among Love Funding’s offices to see which team could perform the most acts of “love” by the end of the month. Love Funding employees have been busy walking dogs at animal shelters, calling bingo at assisted living facilities, participating in a community clean-up of the Chesapeake Bay, making donations to St. Jude’s Children’s Research Hospital, local police and fire departments, packing and sending care packages to our troops overseas, and serving breakfast at local food shelters. As we near the finish line, we invite our valued clients and industry partners to join us in this initiative. Drop us a line and let us know how you show the “Power of Love” in your communities throughout the year.

This month also marks operational day one for our merger with Midland States Bank, giving us the strength and backing of a $2.5 billion bank. This new relationship will allow Love Funding to provide more financing options than ever before, including expanded bridge loan capabilities. So give us a call and let us know how we can help you meet your financial goals.

2015-04-29T21:18:58+00:00Love Funding News, Newsletter|

From our Newsletter: Spread the Love

2014-Q3

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On Valentine’s Day, our thoughts turn to commitment, and we’d like to take this opportunity to talk about ours. At Love Funding, we are starting out 2015 by making changes to improve the level of service and products we can offer our existing and new clients. We were recently acquired by Midland States Bank, allowing us to expand our lending capabilities, bring our servicing group in-house and serve as a one stop shop for the very best in FHA financing solutions. We’ve also been busy expanding our originations, underwriting, closing and asset management groups to provide our customers with dedicated, personalized attention through every stage of the finance process. At Love Funding, we deeply value our client relationships and look forward to demonstrating our continued commitment in 2015.

From Our Newsletter: Changes on the Horizon

2014-Q3

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The Love Funding team recently gathered in Boston to celebrate our 30th anniversary and discuss plans for the company’s future. We enjoyed our time together and are proud of where we stand today as a top FHA lender; however, we recognize that our success means nothing without strong client relationships. So as a team, we put our heads together to identify measures to ensure that our clients keep coming back. We are streamlining internal processes, expediting underwriting procedures, simplifying loan documents and building out a loan portal to provide our clients with the very best in customer service.

We are also excited about the many changes happening at HUD, including a new 232 handbook to improve efficiency on the healthcare side and a detailed plan for the multifamily transformation. Stay tuned for more information, and in the meantime, let us know how we can better serve your needs.

From Our Newsletter: 30 Years of Love

2014-Q2

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We are proudly celebrating our 30th anniversary this month at Love Funding. In just three decades, we have grown from a one-location, family-owned mortgage bank to become one of the top FHA lenders in the country with offices nationwide. Through the real estate market’s ebb and flow, Love Funding has remained a consistent and stable source of financing over the years. And we remain today as committed as ever to providing our clients with the best possible service.

Knowledge. Integrity. Results. At Love Funding, our dedicated focus on FHA finance means we have some of the most knowledgeable underwriters, closers and loan originators in the industry. Because we recognize that our 30-year track record means nothing without our valued clients’ continued support, our top priority is closing your loan with the utmost integrity. And we know how to get results. We have 30 years of client success stories to prove it. Join us in celebrating 30 years.

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2014-04-01T23:36:22+00:00Love Funding News, Newsletter|

From Our Newsletter: A Very Happy New Year

2014-Q1

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I think we are all happy to see the new year arrive! Last year was a challenging one for our industry, but I’m proud of the way our company and our clients weathered a number of headwinds. Together, we faced down the fiscal cliff, the government shutdown, a spike in rates as investors got ahead of the Fed’s tapering announcement, and then HUD ran out of commitment authority before the end of the fiscal year.

Coming into 2014, I think it’s fair to say that conditions are stabilizing across the board. We have a new Fed chairperson who is widely expected to go slow in withdrawing monetary stimulus. We’re seeing rates hold steady as the fixed-income market realizes it got ahead of itself last year. And we’re looking forward to the mid-term elections and the fresh energy a new Congress will bring.

On top of that, we’re seeing high demand for multifamily and healthcare construction. HUD is committed as ever to maintaining a strong supply of affordable multifamily and healthcare properties across the country. In fact, Multifamily Deputy Assistant Secretary Ben Metcalf recently said the agency is focused on the jobs-creating potential of the 221(d)(4) construction-financing program in particular.

Hopefully, more of those outside the industry will soon realize how meaningful these programs are not just for economic development, but for local communities as well. I’m proud of the role we play every day to help deliver those wide-reaching benefits, and you should be, too. Call us to see how we can work together in 2014.

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2014-01-14T23:51:33+00:00Love Funding News, Newsletter|

From Our Newsletter: Onward and Upward

2013-Q4

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It has certainly been a wild ride this past month. HUD exhausted its loan commitment authority from Congress, the government shut down for two weeks, and the nation dabbled dangerously close to defaulting on its financial obligations.

Despite all of this, Love Funding was able to move our business forward. Throughout the government shutdown, our experienced finance team continued to process, underwrite and service loans, and we stand as ready as ever to take on new business.

Though none of us care to relive the events of the past month, I am proud of the way our team embraced the challenges and committed anew to helping our clients realize their financing goals. At Love Funding, we are always open and always available to answer your questions. Give us a call.

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2013-10-31T23:56:59+00:00Love Funding News, Newsletter|

From Our Newsletter: An Historical Perspective on Interest Rates

2013-Q3

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Rates are Still Low
While we have seen a little run up in our rates over the past month or so, our rates still remain historically low. Let’s put some perspective on rates.

Looking back at interest rates from 1965 to 2003 – a period spanning almost 40 years – you’ll see that rates never went lower than 5.23%. Today, sub-5% interest rates still prevail, and the smart developers and owners are taking advantage of these historically low rates. Demand for rental housing remains strong and many underserved markets remain. In short, opportunity still abounds for our clients.

Short of asking the Chairman of the Federal Reserve to stay off television, there is little we can do to control the dramatic volatility we have witnessed of late. However, it is important to recognize that it was the severity of the recent rise in rates that was unsettling – not where rates have since settled. At least for now, rates have stopped their ascent, stabilizing at sub-4% for permanent loans and sub-5% for 40-year construction loans. So while the spike in rates took everyone by surprise, more normal market conditions now prevail.

What is in our control as a trusted lender is how we manage our clients’ transactions while remaining true to our mission statement: “To provide outstanding results for each one of our clients.” We’re proud to live up to that mission every single day, and we’re ready to help you execute on these historically low rates while they last.
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2013-07-25T01:04:23+00:00Love Funding News, Newsletter|

From Our Newsletter: Business as Usual

2013-Q2

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What in the world is going on? With all of the talk about sequestration, the debt ceiling, GSE reform and general market turmoil, you would think that any company doing business with the federal government is in dire straits. Certainly, a lot of what is happening on Capitol Hill has a ripple effect on our FHA business. But let’s be clear about something: Ripples aren’t waves.

While these changes will affect a few of our friends at HUD, it will not have any impact on our ability to do business with HUD. Congress has passed a continuing resolution to keep the government open for business. In addition, HUD has been allocated the full commitment authority it was granted for fiscal year 2013. This means business as usual for the foreseeable future.
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2013-04-09T15:50:22+00:00Industry News, Newsletter|

From Our Newsletter: Record-Breaking Results

2013-Q1

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Last year was a record-breaking year for Love Funding, and I would like to express my sincere appreciation to all of our repeat and new clients for the trust you have placed in our team to handle your financing needs in 2012.

We know that when selecting an FHA lender, your choice depends on more than just pricing – knowledge, integrity and results are of the utmost importance and essential to the way we do business. These key values enabled Love Funding to arrange and finance over 109 transactions in 2012, for a total transaction volume of $1.23 billion. We closed 107 FHA insured mortgages for $834 million and arranged for a $30 million bridge loan for one client.

We are very proud that we were selected by the state of South Carolina to assist them in modifying their FHA-insured mortgage for Medical University Hospital Authority. Through our team’s efforts we were successful in modifying the $361 million mortgage to gain a 38% reduction on the interest rate. The debt service savings will help the hospital manage the expected reductions in Medicare and Medicaid reimbursements and other industry-wide financial pressures, assuring that the #1 ranked hospital in South Carolina remains on solid financial footing.

Of course we could not reach such lofty heights without the dedicated team of professionals that work at Love Funding. Our originators, underwriters, analysts, loan production specialists and closers are committed to providing a superb customer experience.

To our valued customers, we thank you for your business. To our future customers, please call us to discuss your financing options for your multifamily, healthcare, affordable or hospital property.

Knowledge, integrity and results: It’s more than a tag line for us – it’s a commitment. We look forward to honoring that commitment in what we expect will be another great year in 2013.  (more…)

2013-01-24T00:06:38+00:00Love Funding News, Newsletter|
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