About the Office of Residential Care Facilities
Background

The Office of Residential Care Facilities administers the Section 232 loan program. Section 232 is an FHA loan product that provides mortgage insurance for residential care facilities. Nursing homes, assisted living facilities, and board and care are all examples of this type of housing (a project may include more than one type).

Section 232 may be used to finance the purchase, refinance, new construction, or substantial rehabilitation of a project. A combination of these uses is acceptable - e.g. refinance of a nursing home coupled with new construction of an assisted living facility.

The program was re-engineered in 2008 to provide exceptional customer service, reduce processing time, and streamline operations to reduce risk to the FHA fund.

Our Structure

The Office of Residential Care Facilities is led by an Office Director, Roger Lewis, and three division directors.

Asset Management  – Tim Gruenes, Director
The primary responsibilities of the Asset Management Division of OHP are to service mortgages, monitor risk and minimize claims. Each Account Executive (AE) works in partnership with the Mortgagor and Lender to ensure each FHA-Insured 232 loan is financially and operationally strong, that each property provides a safe, quality place of residence, and that the loan remains viable for the term of the mortgage.

Monitoring of Section 232 Assets includes reviewing state inspection surveys, analyzing Mortgagor FASS submissions and lessee/operator financial submissions, reviewing PASS physical inspections and monitoring Centers for Medicare and Medicaid Service (CMS) ratings.

The Asset Management Division is organized into 5 branches--4 Loan Management Branches led by Angela Collier, Edward Chlystek, Rita Dockery and Catherine Worley and a Risk Mitigation Branch led by Tim Coon. 

Policy, Risk Analysis and Lender Relations Division – John Hartung, Director
The Policy, Risk Analysis and Lender Relations Division supports the Production and Asset Management divisions by providing fair and consistent development, interpretation and communication of policies that manage and mitigate risk to the Section 232 Program and the FHA Insurance Fund.  Examples of work products from this Division include routing email blasts to the public, Mortgagee Letters, Federal Register Notices and regulatory amendments.  The Division works closely with other ORCF Divisions, as well as OGC and industry stakeholders. In addition, John Hartung is the Lender Relations Liaison. 

Production Division – Patrick Berry, Director
The Production Division directs the Section 232 application processing and underwriting functions, which include processing of applications for Section 232 mortgage insurance, establishment and development of underwriting guidelines, process improvement and streamlining, management of the application pipeline, and coordination with and training of lenders and industry partners participating in the application process.

The Production Division is further separated into teams led by Terry Bessette, Susan Gosselin, Wayne Harris and Thomas McMillan.

Staff Locations
The Office of Residential Care Facilities' culture is defined by our staff who are the best and the brightest in their respective area of expertise. The staff is widely distributed throughout the nation and located in 21 locations. We stay connected through a virtual working environment that leverages conference calls, emails, “Live Meeting” and other virtual tools.