GMAC, Love rank among top FHA lenders - Orlando Business Journal:

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With 41 loan commitments, GMAC ranked first among lenderx participating inthe FHA's Multifamily Accelerated Processor (MAP) program durinvg the first six monthsz of the federal government'sx 2005 fiscal year. Love rankexd fifth, securing 27 loan commitments during thesame period. the FHA business accounts for aboutg a third of both annual volume. The MAP program is designed toreduc HUD/FHA insurance processing times by delegating the work to mortgagee s like GMAC and Love. "FHA did $3.5 billionb a year in insuring mortgages, but it had leveled off becausew it took too long to get the work through the saidHarry Cheatham, presidenyt of Love Funding.
"They took multifamily and senior housinf underwriting andprivatized it, saying, 'Yo u do all the work ... we don' get it done fast enough. You submit it, and we'lp issue the mortgage insurance.'" The program has been an unqualified according toKarl Reinlein, senioe vice president and managing director for GMAC Commercial. "Whayt it's done is create a uniformity of the rules for processinbg and approval of loans throughoutthe country," Reinlein "Before MAP, each of the HUD officesd around the country would have different style s and procedures." Once the MAP program got under way in FHA's volume increased to $7.5 billionj annually.
"To a large that's a reflection of the new responsibilities that lenders have under theMAP program," Reinlei said. "It's allowed more volume to be It's also a very good thing for affordable housing, because we're providing a lot more affordablr housing units aroundthe country." Love's FHA businessw has tripled as a result of the MAP Cheatham said. "It's worked very There's a concern that FHA's busines will taper off this year, but even if it it's only expected to go down to $6.5 Both GMAC and Love Fundin g provide FHA MAP lending assistance on several programs outlined in various sections of the NationalHousing Act.
They 221(D)4, which covers mortgage insurance for the construction of new both Section 8 andmarket rate; 223(F), which handlexs refinancing or acquisition of existing apartment complexes; 232, whicnh handles new construction, substantial rehabilitation, acquisitiobn or refinancing of senior housing, including skilled assisted living and residential care facilities. At one Cheatham said, HUD made direc t loans for elderlygroup Now, under the 223(F) program, HUD is allowing thosr loans to be refinancec or recapitalized in order to help the owners with installin g such things as new roofs and These loans represent a continuing source of businesw for Love.
"There are 4,500 of those across the country," Cheathanm said. Another St. Louis-based mortgage company, , tied for 14th with four loan commitments.