We are pleased to report another successful year as illustrated by the following highlights:

• We closed twelve FHA-insured loans totaling approximately $110 million for skilled nursing, assisted living and senior housing projects in the Southeast, Mid-Atlantic and New England. The closings reflected a wide variety of development and recapitalization activities and FHA mortgage insurance programs: our loans were used for refinancings, construction and substantial rehabilitation, operating losses recovery and tax-exempt and taxable bond refundings.
• We continued to show a high degree of customer satisfaction and client retention in 2009: over 92% of our closings were for repeat customers.
• We maintained our commitment to affordable elderly housing: 40% of our 2009 closed loans involved low-income housing tax credits. We also were engaged this past year by a religious-based not-for-profit organization in the Southeast to assist them recapitalize their flagship low-income elderly housing project through a "decoupling" of its current HUD subsidies and new FHA-insured refinancing loan that is expected to close in the first quarter of 2010.
• We continued the expansion of our origination, loan processing and underwriting activities in 2009 by hiring a new banker in June and adding a second loan correspondent in the third quarter, who has helped us extend our reach to the West Coast.

The upcoming year looks promising. FHA-insured financing continues to offer low interest rates and attractive terms. Alternative capital sources have been slow to re-enter the marketplace, leaving FHA as one of the only games in town. FHA continues to add staff to its Lean processing program for healthcare projects in an effort to alleviate the time delays for application review that beset the program in 2009. For those borrowers with existing FHA-insured loans at high interest rates relative to today’s favorable market conditions, the Section 223 (a) (7) program continues to offer a quick and inexpensive way to refinance. Hospital projects solely seeking to refinance existing without undergoing an expansion or renovation project can now use FHA’s newest mortgage insurance product, Section 242/223 (f). We are developing one of the first applications under the program for a not-for-profit community hospital in California. Please use the Contact Us section if you want to know how we can meet your capital needs with an FHA-insured loan.