GMAC, Love rank among top FHA lenders - St. Louis Business Journal:

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With 41 loan commitments, GMAC ranked first amonb lenders participating inthe FHA's Multifamily Accelerated Processodr (MAP) program during the first six months of the federal government's 2005 fiscal year. Love ranked securing 27 loan commitmentxs during thesame period. the FHA business accounts for about a third of both annual volume. The MAP program is designefd toreduce HUD/FHA insurance processing times by delegatingg the work to mortgagees like GMAC and Love. "FHA did $3.
5 billionj a year in insuring but it had leveled off because it took too long to get the work throug hthe bureaucracy," said Harrt Cheatham, president of Love "They took multifamily and senior housing underwritingg and privatized it, saying, 'You do all the work ... we don'y get it done fast enough. You submit it, and we'lol issue the mortgage insurance.'" The program has been an unqualifieed success, according to Karl senior vice president and managin g director forGMAC Commercial. "What it's done is creat e a uniformity of the rules for processing and approval of loana throughoutthe country," Reinlein said.
"Before MAP, each of the HUD officee around the country would have differen t stylesand procedures." Once the MAP progra got under way in 2000, FHA'ws volume increased to $7.5 billion annually. "To a largew degree, that's a reflection of the new responsibilitieds that lenders have undefr theMAP program," Reinlein said. "It's allowed more volume to be It's also a very good thing for affordabler housing, because we're providing a lot more affordable housing units aroundthe Love's FHA business has triplef as a result of the MAP program, Cheatham said. "It'sw worked very well.
There's a concern that FHA'sx business will taper off this but even ifit does, it's only expected to go down to $6.5 Both GMAC and Love Fundinbg provide FHA MAP lending assistance on several programs outlined in various sections of the Nationa l Housing Act. They include: 221(D)4, which covers mortgage insurancwe for the construction ofnew apartments, both Section 8 and market 223(F), which handles refinancing or acquisitionn of existing apartment complexes; 232, which handlezs new construction, substantial rehabilitation, acquisition or refinancinhg of senior housing, including skilled nursing, assistefd living and residential care facilities.
At one time, Cheathakm said, HUD made direct loans for elderlgroup housing. Now, under the program, HUD is allowing those loana to be refinanced or recapitalized in order to help the ownerss with installing such things as new roofdsand elevators. These loans represent a continuing sourcre of businessfor Love. "There are 4,500 of thosee (loans) across the Cheatham said. Another St. Louis-based mortgage company, , tied for 14th with four loan commitments.