News
APPLICATION MOLASSES
February 9, 2011
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| At the big mortgage bankers confab in San Diego this week, HUD'sCarol Galante compared multifamily and healthcare financing (and the slow application process) to peanut butter: ?We've got a biglump in the system, and we've got to find a way to smooth that out.? Consulting firm McKinsey provided productivity tips, so the FHA will screen projects for feasibility before processing teams swoop in. Carol warns you'll be held accountable for the quality of yourapplications; they're not going to rework incomplete or unrealistic deals. ?We need to clear the pipeline for those deals that make sense.? The FHA had record production of $11B in 2010. The only constraint for 2011 is human resources. | |
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| HUD's Roger Miller (far right) says the Office of Healthcare did twice as many hospital deals in 2010 (nine in September alone) as in '09, at $100M per clip. The office reorganized in June and has achieved equal status with multifamily and single-family, and its principal balance has grown to $26B with more than 2,500 portfolio facilities. Section 232 acting director William Lammers (next to Roger) says the average underwriting time is still too long. Steps to speed it up: Applications that fall into set criteria will be processed more quickly than ever. But as in multifamily, underwriters don't have the luxury to rewrite deals that have problems. ?We're going to be sending deals back.? |
