Notice2021-24294
Notice of HUD Vacant Loan Sales (HVLS 2022-1)
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 8, 2021
Issuing agencies
Housing and Urban Development Department
Abstract
This notice announces HUD's intention to competitively offer multiple residential reverse mortgage pools, including six multi-loan pools and one single asset pool, consisting of approximately 1,700 reverse mortgage notes secured by vacant properties with a loan balance of approximately $420 million. The Secretary will prioritize bids on some of these assets to qualified non-profit or unit of state or local government bidders. This notice also generally describes the bidding process for the sale and certain persons who are ineligible to bid. This is the seventh sale offering of its type and the sale will be held on December 1, 2021.
Full Text
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<title>Federal Register, Volume 86 Issue 213 (Monday, November 8, 2021)</title>
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[Federal Register Volume 86, Number 213 (Monday, November 8, 2021)]
[Notices]
[Pages 61773-61775]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-24294]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6297-N-01]
Notice of HUD Vacant Loan Sales (HVLS 2022-1)
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, U.S. Department of Housing and Urban Development (HUD).
ACTION: Notice of sales of reverse mortgage loans.
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SUMMARY: This notice announces HUD's intention to competitively offer
multiple residential reverse mortgage pools, including six multi-loan
pools and one single asset pool, consisting of approximately 1,700
reverse mortgage notes secured by vacant properties with a loan balance
of approximately $420 million. The Secretary will prioritize bids on
some of these assets to qualified non-profit or unit of state or local
government bidders. This notice also generally describes the bidding
process for the sale and certain persons who are ineligible to bid.
This is the seventh sale offering of its type and the sale will be held
on December 1, 2021.
DATES: For this sale action, the Bidder's Information Package (BIP) was
made available to qualified bidders on October 21, 2021. Bids for the
HVLS 2022-1 sale will be accepted on the Bid Date of December 1, 2021
(Bid Date). HUD anticipates that award(s) will be made on or about
December 3, 2021 (the Award Date).
ADDRESSES: To become a qualified bidder and receive the BIP,
prospective bidders must complete, execute, and submit a
Confidentiality Agreement and a Qualification Statement acceptable to
HUD. Both documents are available in the announcement posted on the HUD
website: <a href="https://www.hud.gov/program_offices/housing/comp/asset/hsgloan">https://www.hud.gov/program_offices/housing/comp/asset/hsgloan</a>
or on the Program Financial Advisor (PFA), Falcon Capital Advisors,
website: <a href="http://www.falconassetsales.com">http://www.falconassetsales.com</a>.
Due to remote work processes during the COVID-19 National Emergency
and limited access to standard mail, electronic submission of executed
documents via email at <a href="/cdn-cgi/l/email-protection#6129342512000d04122127000d020e0f201212041532000d04124f020e0c"><span class="__cf_email__" data-cfemail="3a726f7e495b565f497a7c5b565955547b49495f4e695b565f4914595557">[email protected]</span></a> is preferred.
Prospective bidders may utilize digital signatures on the
electronically submitted documents. If you do not submit
electronically, please submit executed documents via mail or facsimile
to Falcon Capital Advisors: Falcon Capital Advisors, 427 N Lee Street,
Alexandria, VA 22314, Attention: Dan Wentworth, HUD HVLS Loan Sale
Coordinator. eFax: 1-202-393-4125.
FOR FURTHER INFORMATION CONTACT: John Lucey, Director, Office of Asset
Sales, Room 3136, Department of Housing and Urban Development, 451
Seventh Street SW, Washington, DC 20410-8000; telephone 202-708-2625,
extension 3927 (this is not a toll-free number). Persons with hearing
or speech impairments may access this number through TTY by calling the
toll-free Federal Relay at 800-877-8339 (this is a toll-free number).
SUPPLEMENTARY INFORMATION: This notice announces HUD's intention to
sell in HVLS 2022-1 due and payable Secretary-held reverse mortgage
loans.
[[Page 61774]]
HUD is offering six multiple residential reverse mortgage pools
totaling approximately 1,700 reverse mortgage notes with a loan balance
of approximately $420 million. The mortgage loans consist of first
liens secured by single family, vacant residential properties, where
all borrowers are deceased, and no borrower is survived by a non-
borrowing spouse. Qualified non-profit or unit of state or local
government bidders will have the opportunity to bid on all loans and
may receive a priority bidding opportunity for up to 50 percent of the
loans in five of the multi-loan pools (Carve-Out Pool).
HUD also intends to include in HVLS 2022-1 a single asset pool for
sale consisting of a reverse mortgage loan secured by an Illinois
multi-unit single-family property, where there is no surviving borrower
or non-borrowing spouse but some units are currently tenant-occupied.
This single asset pool has a loan balance of approximately $158
thousand. For one of the multi-loan pools and the single asset pool,
HUD will prioritize bids from non-profit or unit of state or local
government bidders (each a Priority Pool).
A listing of the mortgage loans will be included in the due
diligence materials made available to qualified bidders. The mortgage
loans will be sold without FHA insurance and with servicing released.
HUD will offer qualified bidders an opportunity to bid competitively on
the mortgage loan pools.
The Bidding Process
The BIP describes in detail the procedure for bidding in HVLS 2022-
1. The BIP also includes a standardized non-negotiable Conveyance,
Assignment and Assumption Agreement for HVLS 2022-1 (CAA). Qualified
bidders will be required to submit a deposit with their bid. Deposits
are calculated based upon each qualified bidder's aggregate bid price.
HUD will evaluate the bids submitted and determine the successful
bid, in terms of the best value to HUD, in its sole and absolute
discretion. If a qualified bidder is successful, the qualified bidder's
deposit will be non-refundable and will be applied toward the purchase
price. Deposits will be returned to unsuccessful bidders.
This notice provides some of the basic terms of sale. The CAA,
which is included in the BIP, provides comprehensive contractual terms
and conditions. To ensure a competitive bidding process, the terms of
the bidding process and the CAA are not subject to negotiation.
Due Diligence Review
The BIP describes how qualified bidders may access the due
diligence materials remotely via a high-speed internet connection.
Mortgage Loan Sale Policy
HUD reserves the right to remove mortgage loans from HVLS 2022-1 at
any time prior to the Award Date and the settlement date for the
mortgage loans. HUD also reserves the right to reject any and all bids,
in whole or in part, and include any reverse mortgage loans in a later
sale. Deliveries of mortgage loans will occur in conjunction with
settlement and servicing transfer no later than 60 days after the Award
Date.
The HVLS 2022-1 reverse mortgage loans were insured by and were
assigned to HUD pursuant to section 255 of the National Housing Act, as
amended. The sale of the reverse mortgage loans is pursuant to section
204(g) of the National Housing Act.
Mortgage Loan Sale Procedure
HUD selected an open competitive whole-loan sale as the method to
sell the mortgage loans for this specific sale transaction. For HVLS
2022-1, HUD has determined that this method of sale optimizes HUD's
return on the sale of these loans, affords the greatest opportunity for
all qualified bidders to bid on the mortgage loans, and provides the
quickest and most efficient vehicle for HUD to dispose of the due and
payable mortgage loans.
Bidder Ineligibility
In order to bid in HVLS 2022-1 as a qualified bidder, a prospective
bidder must complete, execute, and submit both a Confidentiality
Agreement and a Qualification Statement acceptable to HUD. In the
Qualification Statement, the prospective bidder must provide certain
representations and warranties regarding the prospective bidder,
including but not limited to (i) the prospective bidder's board of
directors, (ii) the prospective bidder's direct parent, (iii) the
prospective bidder's subsidiaries, (iv) any related entity with which
the prospective bidder shares a common officer, director, subcontractor
or sub-contractor who has access to Confidential Information as defined
in the Confidentiality Agreement or is involved in the formation of a
bid transaction (collectively the ``Related Entities''), and (v) the
prospective bidder's repurchase lenders. The prospective bidder is
ineligible to bid on any of the reverse mortgage loans included in HVLS
2022-1 if the prospective bidder, its Related Entities, or its
repurchase lenders, are any of the following, unless other exceptions
apply as provided for in the Qualification Statement.
1. An individual or entity that is currently debarred, suspended,
or excluded from doing business with HUD pursuant to the Governmentwide
Suspension and Debarment regulations at 2 CFR parts 180 and 2424;
2. An individual or entity that is currently suspended, debarred,
or otherwise restricted by any department or agency of the federal
government or of a state government from doing business with such
department or agency;
3. An individual or entity that is currently debarred, suspended,
or excluded from doing mortgage related business, including having a
business license suspended, surrendered or revoked, by any federal,
state, or local government agency, division, or department;
4. An entity that has had its right to act as a Government National
Mortgage Association (``Ginnie Mae'') issuer terminated and its
interest in mortgages backing Ginnie Mae mortgage-backed securities
extinguished by Ginnie Mae;
5. An individual or entity that is in violation of its neighborhood
stabilizing outcome obligations or post-sale reporting requirements
under a Conveyance, Assignment and Assumption Agreement executed for
any previous mortgage loan sale of HUD;
6. An employee of HUD's Office of Housing, a member of such
employee's household, or an entity owned or controlled by any such
employee or member of such an employee's household with household to be
inclusive of the employee's father, mother, stepfather, stepmother,
brother, sister, stepbrother, stepsister, son, daughter, stepson,
stepdaughter, grandparent, grandson, granddaughter, father-in-law,
mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-
law, first cousin, the spouse of any of the foregoing, and the
employee's spouse;
7. A contractor, subcontractor, and/or consultant or advisor
(including any agent, employee, partner, director, or principal of any
of the foregoing) who performed services for or on behalf of HUD in
connection with the sale;
8. An individual or entity that knowingly acquired or will acquire
prior to the sale date material non-public information, other than that
information which is made available to Bidder by HUD pursuant to the
terms of this Qualification Statement, about mortgage loans offered in
the sale;
[[Page 61775]]
9. An individual or entity which knowingly employs or uses the
services of an employee of HUD's Office of Housing (other than in such
employee's official capacity); or
10. An individual or entity that knowingly uses the services,
directly or indirectly, of any person or entity ineligible under 1
through 10 to assist in preparing any of its bids on the mortgage
loans.
The Qualification Statement has additional representations and
warranties which the prospective bidder must make, including but not
limited to the representation and warranty that the prospective bidder
or its Related Entities are not and will not knowingly use the
services, directly or indirectly, of any person or entity that is, any
of the following (and to the extent that any such individual or entity
would prevent the prospective bidder from making the following
representations, such individual or entity has been removed from
participation in all activities related to this sale and has no ability
to influence or control individuals involved in formation of a bid for
this sale):
(1) An entity or individual is ineligible to bid on any included
reverse mortgage loan or on the pool containing such reverse mortgage
loan because it is an entity or individual that:
(a) Serviced or held such reverse mortgage loan at any time during
the six-month period prior to the bid, or
(b) Is any principal of any entity or individual described in the
preceding sentence;
(c) Any employee or subcontractor of such entity or individual
during that six-month period; or
(d) Any entity or individual that employs or uses the services of
any other entity or individual described in this paragraph in preparing
its bid on such reverse mortgage loan.
Freedom of Information Act Requests
HUD reserves the right, in its sole and absolute discretion, to
disclose information regarding HVLS 2022-1, including, but not limited
to, the identity of any successful qualified bidder and its bid price
or bid percentage for any pool of loans or individual loan, upon the
closing of the sale of all the mortgage loans. Even if HUD elects not
to publicly disclose any information relating to HVLS 2022-1, HUD will
disclose any information that HUD is obligated to disclose pursuant to
the Freedom of Information Act and all regulations promulgated
thereunder.
Scope of Notice
This notice applies to HVLS 2022-1 and does not establish HUD's
policy for the sale of other mortgage loans.
Janet Golrick,
Acting, Chief of Staff, Office of Housing--Federal Housing
Administration.
[FR Doc. 2021-24294 Filed 11-5-21; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on November 8, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.