Eagle Bancorp in Bethesda, Md., has hired four bankers to a develop a business line making Federal Housing Administration-insured loans for multifamily rental properties.
The $5.9 billion-asset Eagle held about $316 million in multifamily loans at Sept. 30, according to its FDIC call report. However, none of those loans is backed by the FHA and the new hires will allow EagleBank to add that type of multifamily lending, Ron Paul, chairman and chief executive, said in an interview.
Eagle is still in the process of obtaining certification from the U.S. Department of Housing and Urban Development and Ginnie Mae to make FHA-guaranteed loans. Approval should come in the next three or four months, Paul said.
Multifamily loans backed by the FHA allow financing through the issuance of tax-exempt bonds and mortgage-backed securities, Eagle said in a Monday news release. Multifamily lending is a good market for Eagle, because of its location in the Washington, D.C., area and its large number of apartment buildings, Paul said.
For the new division, Eagle hired Anthony Washington, Rich Devaney, Mike Somerville and Quinn Cullen.
Washington previously was national production manager at Oak Grove Capital, a St. Paul, Minn., multifamily lender that was acquired by Jones Lang LaSalle. Washington has also previously worked for Walker Dunlop and the First National Bank of Maryland.
Devaney was CEO of Crossbeam Capital, a Bethesda multifamily investor. He also previously worked for Fannie Mae and Bank of America.
Somerville was previously HUD's director of multifamily asset and counterparty oversight. He also has worked for the Federal Home Loan Bank of Cincinnati.
Cullen was an account manager at Oak Grove and has also previously worked for Deutsche Bank Berkshire Mortgage.
