WASHINGTON, D.C. — The U.S. Department of Housing and Urban Development (HUD) has released production data for its FHA 232 mortgage insurance program, which finances seniors housing properties, for the 2019 fiscal year ending Sept. 30.
Over the course of the fiscal year, the program closed $3.7 billion of loan volume, besting the previous year’s $3.6 billion. Additionally, the average loan size of $13 million was a record for the program. A total of 288 loans were closed.
Twenty-one lenders closed loans within the program in fiscal year 2019. ORIX Real Estate Capital (OREC), through its Lancaster Pollard division, led all lenders in number of loans closed and total amount, with 78 loans totaling $903 million, a new record for the program. OREC also led all lenders in construction loan closings, completing seven transactions totaling $112 million, over 50 percent of the program’s total construction volume.
“The FHA 232 program remains an essential part of the seniors housing and care industry,” says Kass Matt, president of Lancaster Pollard.
Since its inception in 2010, the Lean program has insured over 4,000 loans totaling $37.6 billion, with approximately 71 percent of that for skilled nursing communities and 27 percent for assisted living.