Saturday, September 29, 2012

Love Funding jumps to sixth largest FHA lender - St. Louis Business Journal:

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The mortgage banking company tripled its revenues over the last three yearss due in part to an increasefd focus on Federal HousingAdministration (FHA) insure d loans, said Harry president. Love Funding is the sixth-largesy mortgagee for the FHA, according to a 2003 rankingb bythe administration. It has been an FHA mortgagede since the mortgage banking firm was established in but has gone from having a small part of the businesas dedicatedto FHA-insured loans to about 70 Love Funding closed more than $200 milliom in FHA loans during fiscal 2003 and on a totall of almost $347 million in loans acrosxs all property types.
The firm was aided by several includinga 35-year low in mortgage interest rates and increased interest in investing in which Love historically has financed. A new Housing and Urban Development (HUD) initiative focusinv on senior housing also was a boon forLove Funding. Love alreadty had a senior housinb and care division and was able to target the HUD The federal agency decided to emphasize insurinv mortgages for senior housing when lenders were becoming skittish about making loans for those kinds of properties because of cuts in Medicarwe reimbursement tocare providers, Cheatham said. The rate of HUD insurances on senior housing grewfrom $3.
5 billiojn a year to $7 billion two yearws ago and is on track for $10 billion this year, Cheathanm said. "Our business increased in a similar fashion." In the past four Love Funding doubled the number ofits FHA-insured loan underwritersa and originators to 40. Anothe boost to mortgage banking firms like Love is arefinanciny boom, said Tom Zensen, vice presidenft of Professional Equities Inc., an apartment development and managint firm that works with Love "Everyone in the industrg who can refinance is refinancinbg because interest rates are so low. Love Funding is in the middl of it and pursuingit aggressively.
" Professional Equitiea also has seen an increase in financing through the FHA, Zensenj said. Currently, Professional Equities and Love Fundiny are working ona $20 million apartment developmentf near the intersection of Hamilton and Delmar in the city of St. Louix that likely will include funding througuthe FHA, he said. Clayton-based Love Funding is an offshooyt of Love RealEstate Co., founded by Edwibn K. Love in 1875. Principald Larry Schiffer and Andy Love own the as well as interests inHeartland Bank.

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