Berkadia FHA/HUD: 2024 FHA Conference

May 30, 2024

Over 140 members of Berkadia FHA/HUD recently gathered in Phoenix, Arizona to share wins and lessons from 2023 and establish future strategy for the road ahead. With a brief celebration for the group’s year end rankings as the #1 HUD Lender nationwide in 2023, SVP – Head of FHA and Seniors Housing Finance, Steve Ervin was quick to put the team back to work on how Berkadia FHA/HUD can be even better at serving our clients in the year ahead.  

He began by asking the group: “Why do you dedicate your  career to providing FHA financing solutions?”

Answers among the group varied but all held a similar theme that people, passion, and a sense of purpose are “the why.” Our work provides housing that people make into homes. HUD Construction projects are a rare opportunity to see something built from the ground up. Though HUD rules and regulations can be difficult, they make housing better for the people that live in them – there is an impact in everything we do.

Berkadia FHA/HUD is a team of people genuinely fulfilled by the work they do with a drive to be the best at it.

Market Update

“The industry and market have changed. We must change with it.” – Justin Wheeler, CEO

Berkadia SVP – Securities Trading Josh Bodin joined the conference to give a market update as it relates to our HUD bankers and their clients. Key takeaways from our research and team of experts:

  • The Fed’s policy of Quantitative Easing over the last 15 years has run up the U.S. balance sheet and has lessened the effect of interest rate hikes.
    • The excess stimulus means that, despite rate hikes, monetary policy is not nearly as restrictive as the headline number would suggest.
    • Recent disinflation has come more from unwinding the Covid supply shock than the effect of Fed rate hikes.
  • Base case of no rate cuts this year, but high potential that data swings to one cut later in the year.
  • But we should not expect a return to the very low interest rate regime that prevailed during the 2010’s. Persistently high fiscal deficits and increasingly tighter capacity constraints on the economy due to an aging demographic will generate a floor under interest rates.
  • Multifamily is a fantastic place to be, compared to single family with low inventory and prices 45 percent higher.
    • Rents are flattening and mortgage payments remain high.
    • Multifamily is a safe asset when looking at delinquency rates, which are rising most dramatically for office.
  • When it comes to pricing and rates, looking at GNMA Historical Spreads, now is a good time to execute, considering dips.
    • Average securitization deal size has plummeted – GNMA securitization volume by year.

Tools, Tech, and Transformation

We are the best of the best, but we are going to be the most innovative.”  – Bob Warren, Head of FHA Underwriting

Berkadia FHA/HUD is dedicated to creating centralized technology solutions that enable our bankers to better serve our clients. Each solution created should consolidate information, save time, ensure accuracy, and cultivate collaboration.

One such solution is the new HUD due diligence portal, ProDeal. With ProDeal, Berkadia FHA/HUD borrowers will have a convenient, secure, and efficient option, apart from email to exchange and track confidential documents with their Berkadia mortgage banker, underwriting, and closing teams. This tool is currently in development but will be widely rolled out across Berkadia FHA/HUD later this year. Learn more here.

The FHA Conference and its sessions are another example of Berkadia’s commitment to disrupting the industry through long-term investments in people and technology to better serve our clients.

Berkadia FHA/HUD