OptimumBank Launches New HUD Lending Arm, Targeting Niche Market

FORT LAUDERDALE, Fla. – February 23, 2026 – OptimumBank Holdings, Inc. (NYSE American: OPHC) today announced a significant strategic expansion with the formation of OptimumFunding, LLC, a new wholly-owned subsidiary designed to penetrate the federal government-insured lending market. The move creates a dedicated platform for originating HUD and FHA loans, aiming to build upon the company’s established foothold in commercial real estate and healthcare financing.

A Natural Progression from Niche Expertise

For years, OptimumBank has cultivated a reputation as a specialist lender in the skilled nursing and multifamily real estate sectors. This new venture is being positioned not as a diversification into an unknown field, but as a calculated next step. The bank has a long history of providing financing for skilled nursing facility operators, particularly through accounts receivable lending, and has steadily grown its mortgage financing for both nursing homes and multifamily properties.

The formation of OptimumFunding appears to be a direct effort to capitalize on this deep-seated expertise. With a consistent annual growth rate between 25% and 30% and total assets projected to surpass $1.5 billion by year's end, the bank is leveraging a position of financial strength. Its loan portfolio, heavily concentrated in commercial real estate, has been managed with a keen eye on credit quality, a factor that provides a solid foundation for entering the highly regulated government-backed lending space.

Moishe Gubin, Chairman of OptimumBank Holdings, Inc., whose background includes extensive experience managing healthcare properties, commented on the strategic rationale. “The formation of OptimumFunding marks an important next chapter for our organization," Gubin stated in the announcement. "We have spent years building deep relationships and specialized expertise across healthcare and multifamily lending. Expanding into HUD and FHA financing allows us to better serve our clients as they grow, while creating a new line of business that we believe will enhance profitability and shareholder value.”

Streamlining Complex Financing for Developers

OptimumFunding's primary value proposition for clients is its promise of an integrated, seamless financing experience. The subsidiary will offer a focused suite of products, most notably bridge-to-HUD financing. This allows a real estate developer or operator to secure short-term capital for acquisitions, refinancing, or property repositioning with the explicit goal of transitioning to a permanent, long-term FHA or HUD-insured loan—all under a single institutional umbrella.

This model aims to solve a common pain point for developers, who often must navigate separate, disjointed processes with different lenders for short-term and long-term financing. By providing a "one-stop-shop," OptimumFunding intends to reduce friction and uncertainty for its clients.

The company is also emphasizing a “relationship-driven model,” a direct contrast to what it calls the “larger, transactional platforms” that dominate the market. This approach aligns with OptimumBank's existing strategy of serving smaller and mid-sized clients who are often overlooked by major financial institutions. By promising responsiveness and transparency, OptimumFunding hopes to attract borrowers in the skilled nursing, senior housing, and multifamily sectors who value a high-touch service model alongside sophisticated financing solutions.

Entering a Competitive, Countercyclical Arena

OptimumFunding is entering a well-established and fiercely competitive market. The HUD/FHA lending landscape is populated by powerhouse firms like Greystone, Berkadia, and Walker & Dunlop, which collectively originate billions of dollars in loans annually. These firms have built extensive operations and command significant market share. Berkadia, for instance, was the top HUD Multifamily Lender in 2025, closing nearly $1.8 billion in financing.

However, the timing of OptimumBank's entry could be advantageous. HUD-insured loans are often considered countercyclical; they become a more attractive source of capital when conventional lending markets tighten due to economic uncertainty or rising interest rates. Offering long-term (35-40 year), fixed-rate, non-recourse debt, these government-backed programs provide a level of stability that is highly sought after for new construction and substantial rehabilitation projects.

Navigating this market requires significant regulatory and operational expertise. FHA-approved lenders must meet stringent net worth and capital requirements, and the loan application process itself is notoriously complex. OptimumBank appears to be addressing this by structuring OptimumFunding as an independent but fully aligned subsidiary, leveraging the parent company's governance and risk management frameworks. The company has capitalized the new entity through a dividend and subsequent investment from the holding company, a move it describes as a "disciplined capital allocation approach" designed for scalable growth.

A Bet on Stability and Social Impact

Beyond the balance sheet, this strategic pivot aligns the company's growth objectives with the mission-driven goals of federal housing and healthcare programs. HUD and the FHA play a critical role in ensuring the development and maintenance of affordable multifamily housing and essential healthcare facilities across the country. By becoming a conduit for this type of financing, OptimumBank is not only diversifying its revenue streams but also contributing to national infrastructure priorities.

The company explicitly stated it expects the new platform to "align long-term profitability with mission-driven housing and healthcare outcomes." This dual focus on financial performance and social impact could enhance the company's brand and appeal to a broader range of stakeholders, including socially conscious investors.

The launch of OptimumFunding represents a pivotal moment for OptimumBank Holdings, Inc. It is a bold move to leverage a niche specialty on a national scale, transforming from a regional bank with a unique expertise into a specialized financial services provider in the government-insured lending arena. As the platform is built out, the market will be watching closely for further updates on program approvals, key staffing announcements, and initial pipeline activity that will signal the early success of this new chapter.