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  • MT Realty Capital Hits $1.9B in Senior Care

MT Realty Capital Hits $1.9B in Senior Care

Commercial, Healthcare and Multifamily Properties Financing

M&T Realty Capital Corporation reported a record-setting year in 2023 for financing in the senior housing sector, being recognized as the top Fannie Mae DUS Producer and a leading Freddie Mac lender for senior housing.

The company successfully closed loans totaling $575 million for 32 properties across 11 states, with financing sourced from Fannie Mae, Freddie Mac, FHA, and bridge loans for various types of senior living facilities.

A significant transaction among these was the refinancing of a 371-unit facility in Colorado, secured with a $105 million Freddie Mac loan that replaced a previous construction loan, demonstrating M&T RCC's ability to navigate a challenging lending environment.

The success of the M&T RCC Seniors Housing Team is attributed to the combined decades of experience and a cooperative approach of its members who meticulously analyze each deal, with optimism for continued success in 2024.

M&T RCC was the only lender to rank in the top five for both Fannie Mae and Freddie Mac Seniors Housing lending in 2023 and works in tandem with M&T Bank's Healthcare Team to provide a broader range of financial solutions.

M&T RCC offers competitive nationwide financing for multifamily, commercial, and healthcare properties, with various lending accreditations and affiliations, highlighting the company's extensive resources and capabilities in the real estate financing sector.

Our Opinion:

This news reveals an immense growth opportunity in the market segment dedicated to addressing the needs of the aging American population. The National Association of Home Builders reports that by 2030, a third of U.S. households will be headed by someone aged 65 or older. The increase in senior lending activity mirrors the demographic changes and signifies an attractive, booming sector for alternative lending companies. However, it also introduces new risks and increased competition. Alternative lenders need to carefully balance these factors and decide whether entering the senior housing market aligns with their business model, risk appetite, and long-term strategy.

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Headlines You Don’t Want to Miss

Angel AI's commercial during the Superbowl focused on fair lending for all. The company uses AI technology to ensure bias-free access to capital across all demographics. The commercial was part of the company's ongoing effort to broaden awareness and use AI technology to provide unbiased and democratic access to capital.

NY AG Letitia James Wins $77M Lending Suit

The NY AG sued Vision Property Management (VPM) for running a deceptive and harmful rent-to-own business that allegedly engages in predatory lending. VPM's rent-to-own business model was exploited to lure consumers into renting rundown homes and then paying for all repairs and maintenance, convincing them that they would eventually own the homes.

The bank was fined by the US Department of Housing and Urban Development (HUD) over allegations of discrimination against Native Hawaiian, Hispanic, and black applicants who applied for home mortgage loans. The bank is said to have discriminated by demoting offices serving minority communities to limited status, hence depriving them of the full array of services. The bank is required to pay the settlement within 30 days and also ensure the affected offices are restored with full services.

U.S. banks have loaned over $1 trillion to "shadow banks," with regulators concerned about the rapid growth and riskiness of these loans. As regulators like the Office of the Comptroller of the Currency call for increased oversight, small businesses are increasingly seeking credit from these less regulated institutions.

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