WASHINGTON D.C.: After a blockbuster year for The Department of Housing and Urban Development’s (HUD) lean mortgage insurance program in senior housing, volume fell more than 25% in fiscal year 2014, marking the end of a boom for government financing in the sector.
But the news isn’t all bad, say the finance companies that work regularly with HUD, noting that they see continued finance activity on the horizon, albeit not at its previous levels. While the majority of HUD volume has comprised refinance transactions, lender are seeing a major uptick ahead in new construction financing.
HUD’s lean mortgage insurance program, utilized to finance seniors housing properties under the department’s healthcare finance program, finished fiscal year 2014 with $4.21 billion of loan volume, a reduction of 27.8% as compared to the previous year’s record of $5.82 billion…