Queues for HUD lending programs are getting shorter
Jonathan Camps, senior vice president and managing director of production, Love Funding
Commercial mortgage brokers who have worked with clients in the multifamily and health-care sectors to utilize Federal Housing Administration (FHA) loan-insurance programs have routinely traded execution time for attractive terms. The 2008 financial crisis resulted in a significant increase in demand for FHA insurance programs, which in turn has created longer execution time frames. Thanks to the U.S. Department of Housing and Urban Development’s (HUD’s) efforts in the multifamily and health-care sectors, execution time frames recently have taken a turn for the better.
Look no further than HUD’s LEAN program, which the agency introduced in July 2008 to streamline its health-care programs. It quickly became inundated as word spread in the financing community, and underwriting queues were established to deal with the volume. The total number of applications in the queue at any one time rose to 327 in fiscal year 2010 and 329 in fiscal year 2011.
Read the full article on the Scottsman Guide.
As published in Scotsman Guide’s Commercial Edition, March 2012.