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program analyst - HUDUS

By Jeanne Robertson,2014-03-28 01:55
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program analyst - HUDUSAna

    Multifamily Hubs’ FY 12 Initial Endorsements

    The FY 12 Multifamily Initial Endorsements Site provides detailed counts, maps, and graphs on MF Hubs’ production, but key highlights are provided below.

After exploding in FY 10 and continuing upwards in FY 11, in FY 12 Multifamily Hubs’ production

    remained strong and set new records. In FY 12, Multifamily‘s 17 Hubs initially endorsed 1340 FHA &

    Risk Sharing loans -- 8% more than the 1238 apartment / coop loans Hubs closed in FY 11. The 1340 is

    the largest number of loans closed since FY 03 and 04. These 1340 loans provided 197,278 rental units

    and totaled $13.1 billion, the highest dollar volume Hubs have ever closed in one fiscal year. As discussed later in these notes, the 8% increase was fueled by large increases in FHA’s 223f production

    and by increases in Fannie and Freddie risk sharing with FHA.

    Risk Sharing Risk Sharing FY 12FHA Apts/CoopsTotalwith HFAsFannie & Freddie

    # Loans1,24752411,340

    # Units185,4615,2506,567197,278

    Mtge (mils)$12,253.1$344.4$453.1$13,050.6

    % of loans93.1%3.9%3.1%100% Freddie made 31 loans; Fannie made 10.

    ; FHA Programs: 45 multifamily production offices and 55 lenders processed

    1247 of these loans under FHA programs that provide mortgage insurance on

    100% of the loan amount. These 1247 FHA loans supported construction, rehab,

    purchase or improvements to 1225 rental projects and 22 cooperatives. These

    1247 FHA endorsements provided shelter in DC, Puerto Rico, Virgin Islands and

    all states except Montana.

    ; Risk Sharing: HUD’s Risk Sharing programs created additional shelter. 13

    HFAs in 12 states made 52 HFA risk sharing loans covering 5,250 units/beds. In

    addition, Fannie made 10 loans and Freddie made 31 loans, supporting 6,567

    units.

    ; Affordability: 233 properties (with 24,916 units and $1.44 billion in FHA/ risk

    sharing mortgages) supported initiatives that make units especially affordable

    and improve physical conditions for elderly & low income families.

    ; 139 properties (70 with FHA insurance & 69 under Risk Sharing) in 32

    states involved new LIHTC and 54 properties used tax exempt bonds.

    ; 90 loans refinanced loans on older 202 elderly housing and 7 loans

    decoupled Section 236 Interest Reduction Payment (IRP) contracts.

    ; 21 loans involved HOME funds and 10 involved CDBG grants.

    FHA Volume Trends: After increasing tremendously in FY 10 and FY 11, Hubs’ FHA apt/

    coop closings continued to climb. In FY 12, Hubs closed the highest number of loans, units and

    $$ ever closed in one fiscal year for FHA apartment/ coop programs. The 17 Hubs closed 1,247

    loans (with 185,461 units and $12.3 billion). The 1247 loan count exceeded FY 11’s closings (1,143)

    by 9% and is more than triple the number of FHA apartment/coop loans Hubs closed in FY 08.

    Even more impressive, the 1247 apt/ coop loan count exceeds the total loan closings for health

    care, risk sharing & apartments combined in each of FY 05 thru FY 09.

    FHA 223f 241a 223a7 FY 12NC/SR Refi/Pchse Impvmts TotalRefi Apts Apts Apts Apts

    # Loans17564442711,247

    # Units27,54691,96965,634312185,461

    Mtge (mils)$2,714.2$5,680.2$3,851.6$7.1$12,253.1

    % of FY 12 loans14.0%51.6%34.2%0.1%100%

    1. 223f Apts: FY 12’s Sec 223f closings (644 loans for 91,969 units and $5.68 billion)

    produced the highest number of 223f loans, units and mortgage amounts ever closed in one fiscal year. FY 12’s production was up 50% over FY 11’s 223f production (442

    loans with 60,472 units & $3.53 billion). The 644 loan volume was 36% higher than the

    prior 473 loan record set in FY 10. 632 of the 644 loans were refinancings and 12 supported purchases. 149 (23%) of the 644 loans involved projects already holding FHA or 202 loans. 80 of the loans refinanced older Section 202 elderly housing loans,

     involved new LIHTC allocations, and 2 involved decoupling older Section 236 12

    loans. The 644 loans supported units in 46 states, the District of Columbia, Puerto Rico and the Virgin Islands.

    2. 223a7 Apts (without OAHP): After soaring and setting all time highs in FY 11, Hubs’

    223a7 production dipped slightly but remained high. FY 12’s Sec 223a7 closings (427

    loans for 65,634 units and $3.85 billion) were about 15% less than FY 11’s record 508

    loans but still nearly double FY10’s 220 loans and 8 times larger than FY 09’s 53

    loans. The only fiscal year that began to approach FY 11 and FY 12 223a7 levels was FY 03 when Hubs closed 400 Sec 223a7 loans. FY 12’s 427 loans supported units in 41

    states and the District of Columbia.

    3. New Construction / Sub Rehab (NCSR) Apts: After more than doubling in FY 10 (205

    loans) and remaining strong in FY 11 (189 loans), NCSR apartment/ coop production (221d4, 220, 213 coops, and 231 elderly) dropped off slightly but remained strong. FY 12’s NCSR apartment/ coop production (175 loans for 2,546 units & $2.7 billion) was

    just 7% less than FY 11’s production but still nearly double the NCSR apt / coop

    production in FY 08 and FY 09. 57 (33%) of the 174 loans involved new LIHTC allocations. 10 of the loans refinanced older Section 202 elderly housing loans and 2 loans involved decoupling older Section 236 loans. The 175 loans supported units in 30 states and the District of Columbia.

    FY 12 221d4 221d3 220 213 coop 231 Total

    # Loans1580854175

    # Units25,2461,51824753527,546

    Mtge $$ (mils)$2,331.7$319.7$28.0$34.8$2,714.2

    % of FY11 loans91%100%167%100%93%

    Risk Sharing Volume Trends: While HFA closings declined in FY12, QPE production

    jumped significantly as both Fannie and Freddie closings increased sharply.

    1. Risk Sharing with HFAs: After increasing from 41 loans in FY 10 to 73 closings in FY 11, HFA closings dipped to 52 loans (with 5,250 units and $344 million) in FY12.

    13 HFAs (2 in Maryland) made these loans in 12 states. Massachusetts was the top

    producers with 15 loans. 35 (67%) of the 52 loans involved new LIHTC allocations.

    FY 12HFAsFannieFreddieTotal

    # Loans52103193

    # Units5,2502,4104,15711,817

    Mtge (mils)$344.4$167.0$286.1$797.5

    % of FY 11 loans71.2%166.7%193.8%98%

    2. Risk Sharing with QPEs (Freddie & Fannie): QPEs’ FY 12 production increased

    sharply over FY 11 and earlier years. Fannie made 31 loans and Freddie closed 10

    loans. Their combined output (41 loans for 6,567 units and $13.1 billion) exceeded

    FY 11’s QPE loan count (22 loans) by 86% and FY 11’s unit and dollar counts by

    about 150%. The 41 loan count matches the QPE record set in FY 04. Fannie made

    loans in 5 states and Freddie made loans in 11 states. 34 (83%) of the 41 loans

    involved new LIHTC allocations.

    Lender Distribution: 55 lenders closed the 1247 FHA loans. 35 lenders closed NC/SR Apt loans, 48 closed 223fs, and 47 closed 223a7s. 19 lenders closed FHA loans involving new LIHTC allocations. Four lenders Red Mortgage (with 122 loans), Berkadia (115 loans), P/R Mortgager

    (105), and Wells Fargo (101) -- closed over 100 loans and those lenders’ closings accounted for about 36% of the 1247 FHA apt / coop closings. Three lenders (Wells @ $1.3 billion, Red @ $1.2

    billion, and Berkadia @ $1.1 billion) each closed over $1 billion. 7 lenders closed over 50 loans (accounting for 50% of the 1247 FHA loans) and 18 lenders closed 20/ more loans (accounting for 80% of the FHA loans). 8 lenders closed only one loan each and 17 lenders closed under 5 loans each.

    Hub Distribution: Three Hubs closed 100/ more FHA loans: Chicago (160 loans); Fort Worth

    (152 loans); and Minneapolis (100 loans). Those three hubs’ 412 closings accounted for about 33%

    of the 1247 FHA apt / coop closings. 9 Hubs closed over 70 FHA loans. All Hubs except New York and Jacksonville closed more FHA loans in FY 12 than in FY 11. The Denver and Fort

    Worth Hubs had the highest percentage increase (131% and 120%) in closings. While all 17 Hubs closed refinancings, only 13 Hubs closed new construction loans and 15 closed sub rehab loans. 12 Hubs closed FHA loans involving new LIHTC allocations. As grid below shows, within each FHA program category, the highest volume Hub closed significantly more loans in that category than did the other Hubs. The gap was most pronounced for 223f loans with Chicago closing 108 loans followed by Fort Worth with 48 loans. For HFA Risk Sharing, the Boston Hub closed a record 32 loans while 7 other Hubs closed 7/fewer HFA loans. 10 Hubs closed QPE Risk Sharing loans, lead by the Los Angeles Hub with 11 QPE closings.

    # of loans

    HubNC/SR 223f223a7

    Chicago1310839

    Fort Worth454859

    Minneapolis54748

    Jacksonville154021

    Atlanta172731

    Greensboro122142

Office Distribution: As in FY 11 and FY 10, Indianapolis closed the most FHA loans (94) and

    Detroit followed with 74 loans. 7 of our 45 production offices closed over 50 loans each,

    collectively closing 476 loans (38% of the total 1247 FHA closings). 10 additional offices closed

    between 30 and 50 loans. These top 17 offices collectively closed 826 loans (66% of the total 1247

    FHA closings). Offices with the highest number of FHA closings are listed in the grid below.

    While all 45 offices closed 223f loans and 41 closed 223a7 loans, only 33 offices closed new construction/ sub rehab loans. 11 offices closed the 52 HFA Risk Sharing loans, led by Boston (15

    loans) and Manchester (13 loans). 13 offices closed the 41 Fannie/ Freddie Risk Sharing loans.

    # of loans

    OfficeNC/SR 223f223a7

    Indianapolis66226

    LendeDetroit74621

    Chicago74613

    Minneapolis52039

    Fort Worth222021

    Denver132817

    Greensboro91334

    a. New Construction / Sub Rehab: 33 of our 45 production offices closed NCSR loans. Fort

    Worth closed the most NCSR Apt loans (22). Denver followed with 13 loans and

    Atlanta, Greensboro and Richmond each closed 9 NCSR loans. These 5 offices closed

    35% of the 175 NCSR loans closed nationwide in FY 12. b. 223f: As in FY 11, Indianapolis’ 223f production (62 loans) soared above all other

    offices’ production and its own last year count (50 223f loans). Chicago and Detroit

    followed, both closing 46 223f loans (up from the 30 & 29 they closed in FY 11).

    c. 223a7: Minneapolis closed the most 223a7 loans (39) and was followed closely by the

    Greensboro (34 loans) and Indianapolis offices (26 loans).

    State Distribution: HFAs made risk sharing loans in 12 states. Fannie made loans in 5 states

    and Freddie made loans in 11 states. The Multifamily Hubs 1247 FHA loans were secured by properties located in 49 states, the District of Columbia, Puerto Rico and the Virgin Islands.

    Montana had no risk sharing or FHA closings. States with highest FHA loan volumes are listed

    below. Texas saw the most FHA closings (111 loans), followed by Indiana with 97 loans and Michigan with 74 loans. FHA closings supported new construction projects in 27 states and the District of Columbia and sub rehab in 29 states. Properties in 32 states paired new LIHTC allocations with FY 12 loans: 19 states involved FHA loans and 21 states involved risk sharing.

    # of loans# FHA

    loansStateNC/SR 223f223a7

    TEXAS333543111

    Lender at INDIANA6642797

    MICHIGAN7462174

    OHIO8362165

    CALIFORNIA4382365

    ILLINOIS7441263

    MINNESOTA5203863

    NORTH CAROLINA9133456

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