CREF Policy Update: HUD Limits Healthcare Refinancing Dramatically
HUD Limits Healthcare Refinancing Dramatically
Last Thursday, HUD announced limitations on costs to be included in 232/223f refinances. These loans include skilled nursing facilities (SNFs) and assisted living properties.
• The updated policy will limit refinancing costs to “repairs that are necessary to comply with requirements related to life, health, and safety of occupants (e.g., installation of smoke detectors and radon mitigation measures), environmental requirements, associated issuance of permits, and/or federal, state and local regulatory requirements.”
Why it matters: This new policy is a significant change in decades-old practices that allowed non-critical repairs to be included in refinances. This change does not consider the long-term economic viability of the property and will increase risk to the FHA insurance fund.
What’s next: Providing appropriate care for our nation’s seniors should be a priority. MBA joined the Healthcare Mortgagee Advisory Council and other groups in August to oppose this policy and will continue to fight it.
For more information, please contact Megan Booth at (202) 557-2740.
It’s Official: Republicans Retain House Majority
Following last week’s decisive election results, Donald Trump will return to the White House as the 47th President of the United States after exceeding his 2020 popular vote and Electoral College tallies, including sweeping all seven battleground states.
• Republicans are set to control the Senate with at least a 53-seat majority, pending finalized results in Pennsylvania.
• The final tally in the House of Representatives is still up in the air following both Democratic and Republican seat “flips” in various individual districts, but Republicans will keep their majority with a likely (very narrow) margin of 222- 219 (depending on outcomes in several Western states).
Why it matters: A Trump administration and Republican control of both chambers of Congress could lead to sweeping attempts at changes to regulatory and legislative policy in 2025 and beyond, from tax reform, increased interest in GSE reform, and new leadership at the Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), Treasury, and the Department of Housing and Urban Development (HUD), among other key considerations.
What’s next: MBA will provide a deeper analysis in the near future on the full outcome of the national election – and what it means for real estate finance.
• In the meantime, register for the next Mortgage Action Alliance (MAA) Quarterly Webinar: Post-Election Briefing on Wednesday, December 4, from 3:00pm – 4:00pm ET. You’ll hear from a panel of experts as they reflect on the outcome of the election and how to prepare for what’s ahead next year for our industry on the policy front.
For more information, please contact Bill Killmer at (202) 557-2736 and Pete Mills at (202) 557-2878.
MBA Holds Successful Private Credit Finance Summit in NYC
MBA held its second annual Private Credit Finance Summit on Nov. 13-14, 2024, in New York City, attracting more than 100 participants from more than 50 firms to explore trends and future implications in CRE Private Equity.
Why it matters: This summit stands out in the industry as it unites private credit finance professionals for a day and a half of learning, peer discussions, and networking opportunities. The first day featured a “Pre-Game Warm Up” panel and a reception hosted by Citco at their state-of-the-art venue in Manhattan.
• The event commenced with a discussion titled “Who’s Who of Private Credit Finance,” where industry leaders shared insights on their success strategies and the unique value propositions they provide.
The second day was dedicated to a comprehensive agenda that included panels led by subject matter experts, focusing on the competitive landscape and how firms distinguish themselves through their track records and innovative financing solutions. Topics covered included capital formation, the role of banks in supporting private lenders, potential election impacts, and strategies for adapting to a changing market.
For more information on how to register for the next Private Credit Finance Summit, please contact Tonya Wright at (202) 557-2846.
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely commercial/multifamily and single-family programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – all complimentary to MBA members:
• Powering CRE Lending & Asset Management with GenAI: Practical Applications – Nov. 21
• High Performance Negotiations – Lessons and Strategies – Dec. 17
• Fundamentals of Commercial Insurance Issues and Problems – Jan. 28
• Navigating and Ensuring Accurate Reporting with the MBA Commercial and Multifamily Inspection Form – Jan. 30
MBA members can register for any of the above events and view recent webinar recordings by clicking here.
For more information, please contact David Upbin at (202) 557-2931.
