COLUMBUS, Ohio--(BUSINESS WIRE)--The U.S. Department of Housing and Urban Development (HUD) recently released production data for its Lean mortgage insurance program, which finances seniors housing properties, for the fiscal year ending Sept. 30, 2017. Over the course of the fiscal year, the program closed $3.4 billion of loan volume, an increase of 20% as compared to 2016. Lancaster Pollard led all lenders in transactions closed and total loan amount, at 79 and $769.3 million respectively.
A total of 310 loans were closed, up 8% as compared to 2016, as the program continues to serve as an important source of debt capital to the seniors housing industry. The FHA Sec. 232/223(f) refinance program was the largest contributor to the volume as it processed 273 of the loans with a total loan amount of $2.8 billion.
“Once again, many expected a gradual rise in long-term interest rates as the year began, and once again, it never materialized,” said Kass Matt, president of Lancaster Pollard. “Rates continue to remain below historical averages, and seniors housing and care providers continue to take advantage. Throughout HUD’s fiscal year, 75 of our 79 closed transactions were refinancings using the FHA Sec. 232/223(f) program for a total loan amount of $704 million, providing low, long-term fixed rates for our clients and improving their fiscal outlook.”
Thirty-five lenders closed loans within the program in fiscal year 2017 with Lancaster Pollard responsible for 23% of the total activity. In fact, the firm’s number of transactions closed and total loan amount for the year were both more than double that of the next two lender’s number of transactions closed and total loan amounts combined.
The Columbus, Ohio-based firm has been the top HUD Lean lender since fiscal year 2010 with 600 loans totaling $4.7 billion over that eight-year period. In September of this year, the firm was acquired by ORIX USA, a division of leading international financial services group ORIX Corporation. ORIX also owns RED Capital Group, the seventh ranked Lean lender during that time-span. When combined, the two firms would have totaled more transactions closed and a total loan amount more than the second- and third-ranked lenders combined.
“Going forward, with the intellectual and financial capital of ORIX, in addition to our new partnership with RED, we expect our ability to provide the highest level of expertise and service to senior living and health care clients to only accelerate,” said Nick Gesue, CEO of Lancaster Pollard.
Lancaster Pollard helps health care and senior living providers expand and improve their services by providing a full range of investment banking, mortgage banking, private equity, balance sheet financing and M&A advisory services. Lancaster Pollard & Co. LLC, a registered broker/dealer, underwrites taxable and tax-exempt bonds, and provides debt placement and syndication, as well as M&A advisory services.
Lancaster Pollard Mortgage Company originates, underwrites and services mortgage loans insured or guaranteed by governmental agencies. Lancaster Pollard Finance Co. LLC provides balance sheet financing. The Propero™ Seniors Housing Equity Fund LLC provides equity financing for the new development and acquisition of seniors housing and care properties. Lancaster Pollard has provided over $20 billion in debt and equity capital since its inception and its mortgage servicing portfolio exceeds $8 billion. The firm’s home office is in Columbus, Ohio, and it has regional banking offices in Atlanta, Ga; Austin; Bozeman, Mont.; Chicago, Ill.; Denver, Colo.; Kansas City, Kan.; Minneapolis, Minn.; Newport Beach, Calif.; and Philadelphia, Pa. Lancaster Pollard is a subsidiary of ORIX USA Corporation. For more information, visit www.lancasterpollard.com.
Source: U.S. Department of Housing and Urban Development , Office of Healthcare Programs, Section 232 – LEAN, Number of Initial Endorsements and Mortgage Amounts by lender at Firm Commitment, FYE2017 (Sept 30, 2017).