Press Release

Carmel, INDIANA (07/12/2018) – Mathew M. Wambua, President of RICHMAC Funding LLC (“RICHMAC Funding”), a wholly owned subsidiary of PR Mortgage & Investment Corp. (“PR Mortgage”), has been elected to the Board of Trustees of The Metropolitan Museum of Art representing the borough of the Bronx. Mr. Wambua currently serves as president of RICHMAC Funding, where he is responsible for establishing and expanding the RICHMAC Funding multifamily lending platform.  He is a former Commissioner of the New York City Department of Housing Preservation and Development (HPD), the nation’s largest municipal housing agency. He has also served as Executive Vice President of the New York City Housing Development Corporation (NYC HDC).  From 2004 through 2008, Mr. Wambua held the position of Senior Policy Advisor for then-New York City Deputy Mayor for Economic Development.  Mr. Wambua coordinated and oversaw a citywide portfolio of economic development agencies, boards, and commissions.  His portfolio also included oversight of all economic development initiatives within the Bronx and upper Manhattan, including large-scale urban planning initiatives and significant public-private commercial real estate development projects. Previously, he was the Vice President for Special Projects at the New York City Economic Development Corporation (EDC) and a Senior Investment Officer for General Electric Capital Commercial Real Estate. “Our company is very proud of Mr. Wambua’s achievements, and also his continued commitment to the advancement of affordable housing and strong community involvement.  This election is extremely important to us as it speaks to the strength and excellence Mr. Wambua brings to our organization, leading the charge into new business opportunities and markets,” says Michael Dury, President of PR Mortgage. Mr. Wambua earned a B.A. from the University of California at Berkeley and a master’s degree in Public Policy from Harvard University’s John F. Kennedy School of Government.  Mr. Wambua has taught real estate finance at New York University’s Graduate School of Public Service, as well as managerial economics at the New School University’s Graduate school of Public Policy. “PR Mortgage, parent company of RICHMAC Funding, is recognized as a premier provider of multifamily, senior, and student housing throughout the country, and I am honored to serve the company and our mission,” said Wambua. “I have the privilege of working each day with some of the best housing professionals in the industry.”

Carmel, INDIANA (05/18/2018) – Carmel, Indiana based PR Mortgage & Investments (PR) is pleased to announce their selection of SS&C Precision LM to support loan servicing and origination for HUD/Ginnie Mae, Fannie Mae, Freddie Mac and its banking programs. SS&C Precision LM will also enhance PR’s asset management and investor reporting, and provide secure web-based portals for borrower self-service and document workflow automation.  PR’s top priority was to find a fully integrated, highly automated loan origination and servicing platform. SS&C Precision LM’s cloud platform offered the flexibility to support PR’s complex loan products including construction, participations, bridge and adjustable rate loans. “SS&C effectively demonstrated its ability to be a strategic partner for PR Mortgage and brings the industry talent and technology expertise we need to transform our agency and FHA lending operations.  SS&C has an impressive track record and a knowledgeable team to implement best practices based on their recent experience onboarding JLL,” said Michael Dury, President & COO of PR Mortgage & Investments. PR Mortgage & Investments is a wholly owned subsidiary of Merchants Bank of Indiana, specializing in multifamily housing and health care facilities finance.  Merchants Bank of Indiana’s holding company, Merchants Bancorp (Nasdaq: MBIN), is a diversified bank holding company headquartered in Carmel, Indiana operating multiple lines of business with a focus on Federal Housing Administration ("FHA") multifamily housing and healthcare facility financing and servicing, mortgage warehouse financing, retail and correspondent residential mortgage banking, agricultural lending and traditional community banking.  Merchants Bancorp conducts its business through its direct and indirect subsidiaries, Merchants Bank of Indiana, P/R Mortgage and Investment Corp., RICHMAC Funding LLC and Merchants Mortgage, a division of Merchants Bank of Indiana.  PR Mortgage is a premier provider and servicer of multifamily, senior, and student housing. SS&C Technologies is a global provider of investment and financial software-enabled services and software for the global financial services industry. Founded in 1986, SS&C is headquartered in Windsor, Connecticut and has offices around the world. Some 11,000 financial services organizations, from the world’s largest institutions to local firms, manage and account for their investments using SS&C’s products and services.

Carmel, INDIANA (08/15/2017) – Carmel Indiana based PR Mortgage & Investments (PR) is pleased to announce the closing of its acquisition of RICHMAC Funding LLC (RICHMAC), a national Freddie Mac Targeted Affordable Housing Seller/Servicer, Fannie Mae Multifamily Affordable Housing Lender, approved FHA multifamily lender and Ginnie Mae issuer. The seller was an affiliate of The Richman Group. “The RICHMAC platform gives our existing customer base access to Freddie Mac and Fannie Mae, which complements our existing FHA lending platform. Furthermore, RICHMAC and its customers, which include some of the country’s largest apartment owners, will now have support from PR and its parent company, Merchants Bank of Indiana (MBI). MBI will be providing conventional construction and/or bridge loan products that enhance RICHMAC’s permanent loan products. This acquisition solidifies our commitment to affordable housing and gives the MBI family of companies a full array of affordable housing debt products with FHA, Freddie Mac, Fannie Mae, and conventional bank financing.” said Michael Dury, Executive Vice President and COO of PR Mortgage & Investments. RICHMAC will continue to be led by Mathew Wambua and Marsha Goff from offices in New York and Minneapolis. “We welcome Mathew and Marsha and their staff and look forward to working with our existing and new customers in providing expanded and innovative loan products,” added Dury. Beekman Advisors served as strategic advisor to RICHMAC in the transaction and assisted with securing transaction approvals. Wooden & McLaughlin LLP and Ballard Spahr LLP served as legal counsel to PR and RICHMAC, respectively. PR Mortgage & Investments was established in August of 1990 as a mortgage banking firm specializing in multifamily housing and health care facilities finance in the Midwest.  PR is a premier provider and servicer of Multifamily, Senior, and Student Housing. PR is an approved FHA Mortgagee and is an approved Multifamily Accelerated Processing (MAP) lender for HUD. PR is a wholly owned subsidiary of Merchants Bank of Indiana. Merchants Bank of Indiana is headquartered in Carmel Indiana and focuses on several aspects of mortgage lending, agricultural lending, and retail banking services from four Central Indiana locations. Merchants Bank of Indiana has over $3 billion in assets, 165 employees, and more than 100 shareholders. To learn more about Merchants Bank of Indiana, visit www.merchantsbankofindiana.com.

Carmel, INDIANA (5/17/2017) – PR Mortgage & Investments, together with its parent company Merchants Bank of Indiana partnered with Birge & Held Asset Management, LLC to provide financing for Lakeshore Apartments, a multifamily property located in Indianapolis, Indiana.  Financing of the acquisition of the property was completed with a bridge loan through Merchants Bank of Indiana in September 2016.  In May 2017, permanent financing was provided through an FHA 223(f) loan via PR Mortgage & Investments.  PR Mortgage & Investments is proud to partner with Birge & Held Asset Management, LLC and its affiliates (the borrower) to serve residents in their community.  This acquisition represents the largest closing in company history for PR Mortgage, the largest sale in the City of Indianapolis, and the second largest in the State of Indiana. The property contains 740 residential dwelling units originally built in 1988.  With financing provided by the FHA loan, Lakeshore’s $12.6 million renovation project will include new HardiePlank® siding on all buildings, exterior painting, clubhouse and common area upgrades, roof replacement, new gutters and downspouts, and other grounds improvements.  In all apartment homes, renovations include: installation of new kitchen and bathroom cabinets, countertops, new lighting and hardware, new flooring in apartment common areas, new appliances, and interior painting. “Birge & Held is a valued client of PR Mortgage and we appreciate the opportunity to assist in their growth.  Having made them one of their first loans, PR has been fortunate to help them expand their portfolio to over 5,300 units today.  They are experts in implementing a value-add rehab strategy in conjunction with FHA’s 223(f) program, which allows them to leverage the improvements and lock in historic low interest rates for 35 years.  The seamless process from the time of acquisition with the Merchants Bank loan to closing of the PR Mortgage FHA loan allows them to be efficient with their resources.  Birge & Held also has an incredible asset management team that manages the properties long term after the rehab is complete.  It is a win-win for all parties, especially the residents of each community”, said Michael R. Dury, Executive Vice President and COO of PR Mortgage & Investments. PR Mortgage has had a relationship with Birge & Held principals, J. Taggart Birge and Andrew J. Held, since 2012.  The principals own and operate their multifamily properties through their management company, Birge & Held Asset Management, LLC. “PR Mortgage & Investments continues to prove itself as a consistent and dedicated finance provider, and working with the team on the closing of the loan for Lakeshore Apartments has been an excellent collaborative process,” said Andrew Held, Principal of Birge & Held Asset Management LLC. Both Merchants Bank of Indiana and PR Mortgage & Investments appreciate the opportunity to work with Birge & Held Asset Management, LLC and look forward to providing more service in the future.

(Carmel, IN) – PR Mortgage & Investments, along with our parent company Merchants Bank of Indiana, is proud to announce our selection as one of the Best Places To Work in Indiana for 2017!This is our second consecutive year to be named to the list. The Top 100 Best Places to Work in Indiana is an annual program hosted by the Indiana Chamber of Commerce, in an effort to recognize outstanding companies that foster and promote a positive employee culture which is evident through the company’s appreciation and value shown toward each employee. The top companies in the state were determined through employer reports and comprehensive, anonymous employee surveys. We are honored to be included once again in this year’s recognition and look forward to an awards celebration later this Spring.

Carmel, INDIANA (1/18/2017) – PR Mortgage & Investments (PR) is proud to announce record results for 2016.  The company finished the year with more than $1.17 billion in mortgage originations, the second highest in the company’s 26 year history, 20,931 total housing units, and 152 total loans. The key highlights of these record performance numbers consisted of Affordable Housing Financings at 30% of total volume, the highest in company history.  Loan volume for 221(d)4 financings exceeded $161 million with 1,957 total housing units.  Also, more than $505 million in loans, 43% of total volume, were closed using Merchants Bank of Indiana, the parent company of PR Mortgage & Investments. PR Mortgage’s servicing portfolio volume also hit record performance numbers in 2016 with 944 active loans exceeding $6 billion, the highest in company history. “We at PR Mortgage are very proud of our accomplishments in 2016 and share in our success with our customers and banking partners. Utilizing Merchants Bank of Indiana in conjunction with FHA and the GSE’s have given us a competitive advantage and provides very competitive financing options for our clients. With the continued growth of the bank and competitive GNMA pricing, we expect momentum to continue in 2017,” said Mike Dury, COO of PR Mortgage & Investments. PR Mortgage & Investments is headquartered in Carmel, Indiana. PR is an approved FHA Mortgagee and is an approved Multifamily Accelerated Processing (MAP) lender for HUD.  PR Mortgage is also a Rural Housing Service (RHS) approved lender for the Section 538 program.  The company is a Government National Mortgage Association (GNMA) Issuer of Mortgage Backed Securities (MBS).  These agencies offer secondary market programs that provide a full range of loan structures for multifamily rental projects and health care facilities. Through these programs, PR Mortgage & Investments can provide acquisition, refinance, rehabilitation, and new construction loans.  These programs offer competitive long-term, fixed-rate loans that meet the needs of our clients.  Through its parent company (Merchants Bank of Indiana), PR Mortgage offers floating and fixed rate interim construction and acquisition/rehab loans.

HUD ISSUES NOTICE H 2016-15:  PROCESSING GUIDE FOR PREVIOUS PARTICIPATION REVIEWS OF PROSPECTIVE MULTIFAMILY HOUSING AND HEALTHCARE PROGRAMS' PARTICIPANTS - EFFECTIVE NOVEMBER 14, 2016 Issued on October 20, 2016, the guide defines Controlling Participants for previous participation review, new flag approval, and rejection guidance and flag protocols in federal programs of certain participants seeking to take part in multifamily housing and health programs administered by HUD’s Office of Housing.  The guide aids in clarifying and simplifying the process by which HUD reviews previous participation of participants that have decision making authority over their projects as one component of HUD’s responsibility to access financial and operational risk to projects in these programs. To download a summary of the Processing Guide changes, click here. To download a copy of the full Processing Guide, click here. PR Processing Staff is up-to-date on the changes that will affect your 2530 submissions.  Look for further instructions when loan documents are requested by your Loan Processor.

We are pleased to announce that PR Mortgage's own Michelle Small has earned HUD’s Deputy Chief Underwriter designation!  This is a tremendous accomplishment and one that takes years of hard work and dedication.  Michelle has been with PR Mortgage for 11 years, starting as a Commercial Loan Processor and then transitioning to Underwriting in 2013.  In her experience as an underwriter, she has underwritten all types of loans from acquisition and refinance transactions, to substantial rehab and new construction.  She has underwritten loans for the following programs; MAP 223(f) & 221(d)4; LEAN 232; RD 538 & 515. MICHELLE SMALLVICE PRESIDENT, DEPUTY CHIEF UNDERWRITER AND COMPLIANCE OFFICERCarmel, Indiana Michelle's experience with complex LIHTC transactions sets her apart as she has been the underwriter of record for commitments in all 5 regions of the new HUD reorganization structure. She has been an invaluable resource for our growing underwriting staff and has been pivotal in developing our forthcoming Small Balance Risk Share program underwriting standards. THANK YOU MICHELLE AND CONGRATULATIONS!

Congratulations to PR Mortgage & Investments and the Evansville Housing Authority for closing two RAD projects; the first projects successfully closed in the state of Indiana utilizing RAD alongside the FHA 221(d)4 program.  RAD, which stands for Rental Assistance Demonstration, allows PHAs (Public Housing Authority) and owners of HUD-assisted housing to preserve and improve affordable housing units that could be subject to vouchers and demolition.  These types of deals provide a greater funding certainty for potential lenders and increase the operational flexibility for PHAs and owners to service their communities.  PR Mortgage & Investments is proud to assist the Evansville Housing Authority in their quest to provide affordable housing and serve residents in their community. Located in Evansville, Indiana, the subject properties contain over 700 units which provide public housing for seniors.  Originally built between 1965 and 1971, the properties will be substantially rehabilitated using the financing provided by PR Mortgage & Investments. The complete rehab will include installation of geo-thermal HVAC systems, replacement of sanitary sewer risers, new signage, repairs to exterior and interior buildings, installation of new fire alarm systems as well as other needed maintenance. The properties will be modernized and energy efficient.  The cost associated with the combined rehab was approximately $18 million.  With these improvements, the properties will be able to provide affordable housing for years to come.

Congratulations to PR Mortgage's own John Petrie for being named an FHA Chief Underwriter!  This designation is the highest of its kind in the FHA Multifamily industry and John is one of the first to be named in the state of Indiana.  His experience with PR Mortgage dates back 17 years as the company’s first underwriter on staff. Over the years, he has reviewed and approved more than $1.8 billion in HUD loans without any defaults.  We are very proud of his track record and the track record of the company.  In addition to his current position as head underwriter, this important designation will allow John to: Create and oversee MAP Lender’s training and development programs for underwriting personnel Approve MAP underwriters Assure MAP Lender’s compliance with statutory, regulatory, and programmatic underwriting process, requirements, and standards Establish and oversee the MAP Lender’s QC Process CONGRATULATIONS JOHN ON THIS FANTASTIC ACCOMPLISHMENT!