News - 2008
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New FHA Section 232 Refinance/Acquisition Program Promises Streamlined Processing, Simplified Underwriting
Dramatically Improved Processing Time Expected for Skilled Nursing, Assisted Living and Memory-Care Facilities
Columbus, Ohio, July 10, 2008 — Red Mortgage Capital, Inc., a nationally ranked FHA MAP-approved lender and the mortgage banking arm of comprehensive capital provider, RED CAPITAL GROUP, recently announced its intent to start aggressively processing loans on behalf of borrowers pursuant to FHA’s new LEAN process for Section 232 healthcare refinancings and acquisitions. Red Mortgage Capital, Inc. is an authorized LEAN Lender and has a team of eight MAP healthcare approved underwriters.
FHA developed the program with its Seattle, Washington office and recently held training for all FHA multifamily and healthcare lenders June 30-July 1. Two of the most significant and promising changes to the program are a simplified valuation process, whereby appraisals can be performed by any approved market appraiser and the proprietary earnings adjustment is eliminated, and a reorganization of professional staff so that the Office of Insured Healthcare Facilities (OIHF) in Washington, DC will have jurisdiction over the program. Further cutting across program lines to revamp outdated structures that have hindered efficiency, they are in the process of creating teams of specialists around the country who will focus only on healthcare loan types. As a result of the streamlining and improvements, HUD expects to significantly reduce the time from application submission to loan closing. By way of example, HUD’s Seattle healthcare specialty team completed its review in just 11 days for its inaugural project. The program improvements promise consistent, streamlined underwriting on a national basis. Start to finish in less than 90 days!
Edward H. Tellings, Managing Director and Chief FHA Underwriter for Red Mortgage Capital, Inc. and a 31-year veteran of working with FHA loans said, "If processing timeframes kept anyone from using FHA's healthcare finance options in the past, they should talk to us about FHA’s new LEAN process. FHA is working hard to insure loans for more skilled, assisted and licensed special use facilities. They’ve created a model which assigns a consistent contingency of highly experienced healthcare professionals to review mortgage insurance applications and they’ve made improvements to the program overall. We applaud HUD’s efforts and look forward to underwriting and processing our clients’ loan requests given these exciting changes. We believe many of our borrowers will be able to complete loan financings within 90 days of contacting us."
