BETHESDA, MD-Walker & Dunlop has brought on board a former director at the US Department of Housing and Urban Development to serve as SVP and head of its FHA Finance Healthcare department. The new hire, Michael B. Vaughn, will manage origination and underwriting of all of W&D’s healthcare loans. He also will be leading the charge in expanding the company’s footprint in this area.

“We're planning on an enhanced presence in HUD’s Section 232 LEAN finance program,” Vaughn tells GlobeSt.com. When asked by how much, Vaughn didn’t answer directly except to say that HUD’s potential in this area can grow much higher, “and W&D wants to be a leader in that.”

He would know about LEAN’s growth potential—the last position he held at HUD was as director of the Office of Residential Care Facilities, which is part of the Office of Healthcare Programs. In that role, he was responsible for the origination and asset management of the $17.5-billion LEAN portfolio, otherwise known as Section 232 Insured Mortgages on Skilled Nursing and Assisted Living Facilities. While he managed the program, LEAN’s production reached more than 800 loans a year for $6 billion in commitments.

Vaughn also wants to see W&D use HUD’s hospital finance program, which offers attractive terms, he says. “There's a pending rule change that will allow HUD to offer refinancing for hospitals, which I think will be necessary, especially with the Affordable Health Care Act,” he says.

It, too, has significant room to grow. “The universe of hospitals in the US is between 4,000 and 5,000 and right now HUD has loans on only about 100.” Vaughn added he is also looking to systemize W&D’s coverage in the skilled nursing and assisted living of care categories.