Multi-Facility Transactions
Capital Funding Group was the first HUD-approved mortgage lender, experienced in processing and closing portfolio transactions.
In 2001, HUD instituted standards for the submission of multi-facility transactions. These standards were put into place based on a number of national and regional healthcare operators and owners indicating an interest in using HUD programs to construct, rehabilitate, refinance or purchase facilities. Capital Funding Group was the first mortgage lender who gained HUD Headquarters' approval for a large portfolio transaction and has experience in processing and closing portfolio transactions. HUD defines portfolios as follows:
Large Portfolios
- The owner/operator is seeking mortgage insurance financing under the Section 232 Program for either 50 or more projects within any 18-month period or the combined estimated mortgage amounts in excess of $250,000,000.
- The owner/operator must purchase a standardized credit analysis product from a rating agency. This analysis is comprised of a corporate credit analysis, a site visit and a status performance review of each property and line of business, including those not included in the HUD financing.
- Refinancing can be done at one time or in stages.
- HUD Headquarters will perform a mortgage credit review before any application is submitted for processing to a HUD office. If the HUD Headquarters' review is favorable, then applications for individual projects may be submitted to the appropriate HUD offices for processing.
Midsize Portfolios
- The owner/operator is seeking mortgage insurance financing under the Section 232 Program for 11 to 49 projects within any 18-month period and the combined estimated mortgage amounts are equal to or are in excess of $75,000,000 but do not exceed $250,000,000.
- The owner/operator must purchase a Corporate Credit Analysis. This review is of the parent entity and reviews each of the business lines to establish a comfort level with the company submitting the application.
- HUD Headquarters will perform a mortgage credit review before any application is submitted for processing to a HUD office. If the HUD Headquarters review is favorable, then applications for individual projects may be submitted to the appropriate HUD offices for processing.
Small Portfolio
- The owner/operator is seeking mortgage insurance financing under the Section 232 Program for up to 10 properties within any 18-month period and combined estimated mortgage amounts up to $75,000,000.
- HUD will, without Headquarters review, process applications for mortgage insurance standard processing.
