Columbus-based Lancaster Pollard finished the U.S. Department of Housing and Urban Development’s most recent fiscal year having closed on loans amounting to more than $554 million, according to HUD data of the agency’s Lean mortgage insurance program.
As of Sept. 30, the capital solutions firm had closed on 60 of the 287 loans qualifying for the specialized mortgage insurance — 21 percent of total activity.
HUD officials cited a 5 percent increase in loan volume over last year, which resulted in $2.84 billion in loans.
“At the beginning of 2016, there was a general feeling that we would see a gradual rise in long term interest rates, but once again, it never materialized,” Lancaster Pollard President Kass Matt said in a prepared statement. “Long term rates fell and remain well below historical averages, and in that low interest rate environment we were able to close 53 refinancings using the FHA (Federal Housing Administration) Sec. 232/223(f) program, reducing rates for our clients and improving their fiscal outlook.”
Matt said the firm additionally closed seven loans through the FHA Sec. 232 and 241(a) programs, providing funds for new construction, expansion and substantial renovations.
“Separately, and not included in the aforementioned totals, we closed 17 note modifications of existing HUD loans for a total of $161.2 million reducing debt service for those clients,” Matt added.
Lancaster Pollard has led lending of the HUD Lean program since fiscal year 2010 with 521 loans totaling $3.97 billion over the seven-year period, a press release detailed.
The Lean mortgage insurance program resulted from HUD’s implementation of changes to streamline its process and create consistencies for loans that help finance nursing homes, assisted living facilities, and board and care facilities for seniors.
HUD reported the organization reached its goal for total number of commitments issued in fiscal 2016, which translates into more than 32,000 units or beds serving the senior housing industry.
“We applaud HUD as it continues to do an outstanding job processing a large number of transactions while continually improving the process along the way,” Matt said. “We look forward to continuing to use the HUD Lean program as a valuable debt financing option for our clients in addition to our full range of investment banking, mortgage banking, private equity, balance sheet financing and M&A (merger and acquisition) advisory services.”
Lancaster Pollard was one of 34 lenders closing on qualifying loans.
An email to a company spokesman, seeking details on some of the projects supported by the firm’s services was not answered by press deadline.