Cambridge Realty Capital Companies recently announced that it completed its first refinance using HUD’s new Lean funding process for the 83-bed (58 skilled and 25 personal care beds) Beaver Dam Nursing & Rehab Center in Beaver Dam, Kentucky. Cambridge Chairman Jeffrey A. Davis said a $4.2 million FHA-insured loan was arranged for the owner and was structured as a fully-amortized 26-year first mortgage loan was underwritten utilizing HUD’s Section 232 pursuant to 223(f) program, which is used to refinance existing HUD loans. He points out that sweeping changes have radically altered the way HUD applications and loans are being processed and approved. By organizationally restructuring and adopting the highly touted “Lean” management concept pioneered by Toyota Motor Corp., HUD made a bold commitment to process loans on a timetable that more closely resembles the timing for conventional loans. Davis said that the goal is to review an application, issue a commitment and get to closing within 40 days.
“We‘re especially pleased to be able to announce this historic first for Cambridge. We fully anticipate that it will be the first of many transactions underwritten by our company in an exciting new era for HUD and healthcare borrowers,” Davis said. “The idea behind this move was to create a unified, single-source for program and policy development, and a more consistent and user-friendly platform for borrowers and lenders.”