Eagle Bancorp Adds FHA Multifamily Lending to Loan Products
Digested from Eagle Bancorp in Md. Hires Lenders for FHA Multifamily Expansion
American Banker (1/11/16) Macheel, Tanaya
Bethesda, Md.-based Eagle Bancorp has hired four lenders Anthony Washington, Rich Devaney, Mike Somerville and Quinn Cullen to handle Federal Housing Administration (FHA)-insured multifamily loans. Although the bank had $316 million in multifamily loans at the end of Q3 2015, none was insured by the FHA.
FHA insurance expands the banks existing product line and allows Eagle Bancorp to finance the loans through tax-exempt bonds and mortgage-backed securities. The insurance process should be complete in the next three to four months.
Freddie Mac is the leading multifamily lender in the United States. The government-sponsored enterprise (GSE) issued $47.3 billion in multifamily loans in 2015 a significant increase over 2014s $28.3 billion. The Federal Housing Finance Authority limits Freddie Mac to $30 billion of lending, but loans for energy-efficient improvements, affordable housing and assisted-living properties which constituted $17 billion in new business last year are exempt.