Financing for senior housing from the U.S Department of Housing and Urban Development (HUD) continues to dip dramatically, according to recently released numbers.
HUD’s Lean mortgage insurance program, which finances seniors housing properties, closed $2.7 billion of loan volume during the fiscal year ending Sept. 30, 2015. This is down 35.7% from the previous year’s total of $4.2 billion, and 53.4% less than HUD’s record total of $5.8 billion in 2013.
A total of 40 lenders closed 291 loans within the fiscal year.
Columbus, Ohio-based Lancaster Pollard generated the largest volume of loan activity during the fiscal year, closing 65 loans totaling $531 million, or 22.3% of the total loans and 19.7% of the total loan amount. The company has served as the top HUD Lean lender since fiscal year 2010.
The top HUD Lean lenders for this fiscal year came in as follows:
1. Lancaster Pollard – 65
2. Capital Funding LLC – 28
3. Housing & Healthcare Finance – 22
4. Red Mortgage Capital – 19
5. Cambridge Realty Capital – 15
“While the historically high volume HUD experienced in 2013 and 2014 predictably has slowed as much of the refinance activity has curtailed, the options provided by the HUD Lean program continue to be very beneficial to our clients,” Kass Matt, president of Lancaster Pollard, said in a prepared statement.
Over the last six fiscal years, Lancaster Pollard has generated the greatest volume of HUD Lean activity, with 461 loans totaling $3.4 billion. The 65 loans totaling $531 million the company closed in fiscal year 2015 were more than double that of the next closest lender on the list in both total loan amount and loans closed.
“With interest rates remaining below long-term historical averages throughout 2015, we were able to close 55 refinancings utilizing the FHA Sec. 232/223(f) and 223(a)(7) programs, reducing rates for our clients and better positioning them for the future,” Matt said. “In addition, we closed 10 loans through the FHA Sec. 232 and 241(a) programs that provided funds for new construction, expansion and substantial renovations, allowing our clients to improve their facilities to better serve their residents.”
Written by Mary Kate Nelson