HUD Lending Slows in Q1 as Inflation, Labor Add Pressure
The U.S. Department of Housing and Urban Development (HUD) funded far fewer loans in the first quarter of this year compared to last year, recently published Trepp datashows.Factors such as omicron, high expenses and labor shortages kept firms on the sidelines.
HUD funded 346 loans totaling $6.04 billion for 1Q, and that was down substantially from 404 loans totaling $8.92 billion funded in the quarter ending December 2021. For fiscal year 2021, which ran through last September, the agency funded 1,578 multifamily loans with a balance of $29.48 billion, up 55% from the $19.02 billion it funded in fiscal 2020.
In FY21, Greystone was the most active lender with 157 loans totaling $3.23 billion, followed by Dwight Funding with 157 loans totaling $3.1 billion and Berkadia with 127 loans totaling $2.66 billion.
In terms of health care and senior housing, Greystone saw 79 loans totaling $676 million in 1Q22, the firm told Senior Housing News.
Lending volume appears to be slowing with the latest data analysis, and those at Greystone have taken notice.
“We have seen about half the application volume we saw in the first quarter of 2021,” Greystone Head of Healthcare FHA Production Scott Thurman told Senior Housing News, while the dynamics of the lending space have continued to change since early 2021.
Real Estate
Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker. Real estate is the business of exchange and affects every person on the planet. Real estate on all levels represents resources, access and ultimately, power. Knowledge is power…
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