Notice2026-01026
Notice of HUD Non-Vacant Loan Sales (HNVLS 2026-1)
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
January 21, 2026
Issuing agencies
Housing and Urban Development Department
Abstract
This notice announces HUD's intention to offer approximately 2,500 home equity conversion mortgages (HECM, or reverse mortgage loans) secured by occupied properties with a loan balance of approximately $730 million. The sale will consist of due and payable Secretary-held reverse mortgage loans. The mortgage loans consist of first liens secured by real property that is occupied, where the borrower and any borrowing or non-borrowing spouse are deceased, and heirs have not come forward in the time elapsed. This initiative supports HUD's continued efforts to reduce financial risk to the Mutual Mortgage Insurance Fund and promote the efficient disposition of defaulted assets. Additional information regarding sale structure, loan pool composition, and bidding procedures will be provided in subsequent announcements. This notice also generally describes the bidding process for the sale and certain entities who are ineligible to bid. This is the second sale offering of its type and is scheduled for February 10, 2026.
Full Text
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<title>Federal Register, Volume 91 Issue 13 (Wednesday, January 21, 2026)</title>
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[Federal Register Volume 91, Number 13 (Wednesday, January 21, 2026)]
[Notices]
[Pages 2555-2557]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01026]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6568-N-03]
Notice of HUD Non-Vacant Loan Sales (HNVLS 2026-1)
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 offer approximately
2,500 home equity conversion mortgages (HECM, or reverse mortgage
loans) secured by occupied properties with a loan balance of
approximately $730 million. The sale will consist of due and payable
Secretary-held reverse mortgage loans. The mortgage loans consist of
first liens secured by real property that is occupied, where the
borrower and any borrowing or non-borrowing spouse are deceased, and
heirs have not come forward in the time elapsed. This initiative
supports HUD's continued efforts to reduce financial risk to the Mutual
Mortgage Insurance Fund and promote the efficient disposition of
defaulted assets. Additional information regarding sale structure, loan
pool composition, and bidding procedures will be provided in subsequent
announcements. This notice also generally describes the bidding process
for the sale and certain entities who are ineligible to bid. This is
the second sale offering of its type and is scheduled for February 10,
2026.
DATES: For this sale action, the Bidder Information Package (BIP) will
be made available to qualified bidders on or about January 7, 2026.
Bids for the
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HNVLS 2026-1 sale will be accepted from 10:00 a.m. to 1:00 p.m. ET on
the Bid Date, which is currently scheduled for February 10, 2026 (Bid
Date). HUD anticipates that awards will be made on or about February
13, 2026 (the Award Date).
ADDRESSES: To become an eligible bidder and receive the BIP for the
February sale, prospective bidders must complete, execute, and submit a
Confidentiality Agreement and Qualification Statement acceptable to
HUD. The documents will be available in preview form with free login on
the Transaction Specialist (TS), Falcon Capital Advisors, website:
<a href="http://www.falconassetsales.com">http://www.falconassetsales.com</a>. This website contains information and
links to register for the sale and electronically complete and submit
documents.
If you cannot 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:
Glenn Ervin, HUD HNVLS Loan Sale Coordinator. eFax: 1-202-393-4125.
FOR FURTHER INFORMATION CONTACT: John Lucey, Director, Office of Asset
Sales, Room 9216, 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). HUD welcomes and is
prepared to receive calls from individuals who are deaf or hard of
hearing, as well as individuals with speech or communication
disabilities. To learn more about how to make an accessible telephone
call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION: This notice announces HUD's intention to
sell due and payable Secretary-held reverse mortgage loans in HNVLS
2026-1. HUD is offering approximately 2,500 reverse mortgage notes with
a loan balance of approximately $730 million. The mortgage loans
consist of first liens secured by occupied single family properties,
where the borrower and co-borrowing spouse are deceased, and heirs have
not come forward in the time elapsed.
A listing of the mortgage loans will be included in the due
diligence materials made available to eligible bidders. The mortgage
loans will be sold without FHA insurance and with servicing released.
The Bidding Process
The BIP describes in detail the procedure for bidding in HNVLS
2026-1. The BIP also includes the applicable standardized, non-
negotiable sales contract for HNVLS 2026-1, called the Conveyance,
Assignment, and Assumption Agreement (CAA). The CAA will NOT contain
first look requirements or mission outcome goals.
HUD will evaluate the bids submitted and determine the successful
bids in terms of the best value to HUD, in its sole and absolute
discretion. If a bidder is successful, it will be required to submit a
deposit. The deposit will be calculated based upon the total dollar
value of the bidder's potential award. Awards are contingent on HUD
receiving the deposit in the timeframe set out in the bid deposit
confirmation. The deposit amount will be applied to the sale price on
the settlement date.
This notice provides some of the basic terms of sale. The CAA will
be released in the BIP or BIP Supplement, as applicable. These
documents provide comprehensive contractual terms and conditions to
which eligible bidders will acknowledge and agree. 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 eligible 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 a sale at any
time prior to the Award Date and the settlement date. HUD also reserves
the right to reject any and all bids, in whole or in part, and include
any unsold reverse mortgage loans from the HNVLS 2026-1 sale 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 reverse mortgage loans offered for sale 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
HUD's authority in 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 reverse mortgage loans for this specific sale transaction. For
the HNVLS 2026-1 sale, HUD has determined that this method of sale
optimizes HUD's return on the sale of these reverse mortgage loans,
affords the greatest opportunity for all eligible bidders to bid on the
reverse mortgage loans, and provides the quickest and most efficient
vehicle for HUD to dispose of the due and payable reverse mortgage
loans.
Bidder Ineligibility
In order to bid in HNVLS 2026-1 as an eligible bidder, a
prospective bidder must complete, execute, and submit a Confidentiality
Agreement and a Qualification Statement (HUD-9611) that are acceptable
to HUD. In past sales, nonprofit and governmental entities were able to
submit a qualification addendum (HUD-9612), which required additional
certifications and documentation regarding the entity's organizational
structure. This additional information collection will be removed for
HNVLS 2026-1. Nonprofit and governmental entities will be required to
certify eligibility only under the Qualification Statement (HUD-9611).
The Confidentiality Agreement and Qualification Statement collectively
are the ``Qualification Documents.'' In the Qualification Statement,
the prospective bidder must disclose its key employees, including
officers, directors and other decision makers and provide certain
representations and warranties regarding the prospective bidder,
including (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
HNVLS 2026-1 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
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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 a
past sale;
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 the Qualification Statement, about mortgage loans offered in
the sale;
9. An individual or entity that 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 that 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 HNVLS 2026-1, 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 HNVLS 2026-1, 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 HNVLS 2026-1 and does not establish HUD's
policy for the sale of other mortgage loans.
Frank Cassidy,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2026-01026 Filed 1-20-26; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on January 21, 2026.
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.