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In March we left our biennial All-Company Meeting with renewed excitement for the year ahead. The Love Funding team spent three days in South Carolina learning from industry experts and focusing on the company's strategic initiatives for 2018 and beyond. This includes providing our customers with more relevant and educational information to simplify and expedite the FHA loan underwriting and closing process. We will also improve our servicing capabilities and expand our originations staff to provide an enhanced customer experience. All of our strategic initiatives will allow us to better support our customers and industry partners and build upon our reputation as a leading FHA lender. Be sure to check our website for continuous industry updates and to learn more about the Love Funding team.
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2018 SPENDING BILL INCREASES RAD CAPS
In March, the FY 2018 omnibus spending bill changed the Rental Assistance Demonstration Program (RAD). The bill raised the cap to 455,000 units and expanded eligibility requirements by including 202 Project Rental Assistance Contract (PRAC) properties. PRAC properties have been difficult to reposition because the subsidy does not take into account debt service. This change will allow a 202 owner to convert the PRAC into a long term PBRA or PBV and the Office of Recapitalization is working on a notice to implement RAD for PRAC. Additionally, the bill extends RAD by four years to 2024.
WANT TO LEARN MORE?
CLICK HERE to learn more about the 2018 omnibus spending bill and its many positive impacts on the affordable housing community.
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MARKET COMMENTARY
A RISING RATE ENVIRONMENT HIGHLIGHTS NEED FOR LENDER EXPERTISE AND CREATIVITY
The Fed recently raised rates for the first time in 2018, after leaving rates unchanged in January. Committee members noted significant strength in the labor market and a slight uptick in inflation. They did, however, note that the inflation level was still quite low overall. Previous statements from the Fed noted household spending and capital investment as areas of strength, but their most recent statement backed off of these sectors some. The Fed will continue to assess achieved and expected economic conditions versus the objectives of employment and a 2% inflation rate. This will determine the timing and size of future adjustments to the targeted federal funds rate.
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RECENT LOAN CLOSINGS
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Carrino Plaza Apartments
$7,945,500
Construction
Newark, NJ
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Spaulding Place Coop
$4,830,000
Refinance
Black River Falls, WI
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Newman Court Apartments
$9,900,000
Acquisition
Pontiac, MI
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Moon Meadows Apartments
$24,165,300
Construction
Rapid City, SD
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