HUD’s New Express Lane Lending Allows Nursing Homes to ‘Leap Frog’ Loan Queue
The United States Department of Housing and Urban Development has expedited loan applications for care facilities and nursing homes. This special privilege is payback to campaign contributions to the Trump Campaign. The idea behind the expedited applications is beneficial for the industry who gets special rates.
HUD offers low rates, and these rates also come with fixed rates. Hence, most nursing homes will make their loan payments and still have plenty of cash left over. For example, skilled nursing facilities (SNFs) can seek a HUD loan, and the initial closing is only expected to take a few months from the initial loan approval process.
Another example would be the “Lean Frog Loan Queue,” which suggests facilities have quicker access to funds to line the pockets of related entities and not to improve care given at these facilities. It is not hard for Nursing Home Facilities to qualify for the Express Lane program. The qualifications required involved at least a two-star rating, no warnings of abuse, and no “major” health violations.
These loans can range from fifty to seventy million dollars, and facilities needing the loan could qualify. Some view it as a more efficient way to move eligible borrowers quicker through the system, while others have raised concerns about the impact of its oversight and quicker approvals.
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