Jones Memorial Hospital in Wellsville, N.Y., has refunded $5.8 million in tax-exempt bonds, according to a news release.
The nonprofit hospital pursued a note modification to take advantage of low interest rates and refund tax-exempt bonds insured by the U.S. Department of Housing and Urban Development/Federal Housing Administration mortgage reinsurance program, according to Lancaster Pollard, an investment and mortgage banking firm. The transaction not only reduced the hospital's interest rate by more than half but also allowed the release of more than $600,000 in previously restricted cash.
"The FHA loan modification program has faster processing times, because the existing mortgage insurance can remain intact," said Lancaster Pollard Vice President Tom Grywalski, who led the transaction. "In other words, a borrower doesn't need to seek credit reapproval from HUD officials. Utilizing this program, Jones Memorial Hospital was able to cut its interest rate in half and improve its cash position, both essential variables when managing risk and protecting independence."
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