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.
Record HUD Hospital Loan
Love Funding recently closed a $361.4 million loan modification for the Medical University Hospital Authority (MUHA) in Charleston, South Carolina. MUHA, a division of the State of South Carolina, owns and operates the Medical Center of the Medical University of South Carolina (MUSC Health).
The transaction, which was secured through the U.S. Department of Housing and Urban Development Section 242 loan insurance program, is the third-largest hospital loan in the agency's history.Love Funding executed the mortgage modification and interest rate reduction by funding a bond defeasance escrow established by MUHA with proceeds from the sale of Ginnie Mae mortgage backed securities and other trustee-held funds. Love Funding worked closely with Steve Pack, President of New York-based Armadale Capital and MUHA's financial advisor, who structured the defeasance.
The transaction effectively enabled MUHA to achieve a 38 percent reduction in the interest rate on its existing mortgage. The debt-service savings generated from the new low-rate financing will help the hospital offset expected reductions in reimbursements from Medicare and Medicaid, and other industry-wide financial pressures.
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