Notice2026-19458
Notice of HUD Vacant Loan Sales (HVLS 2027-1)
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
September 23, 2026
Issuing agencies
Housing and Urban Development Department
Abstract
This notice announces HUD's intention to offer approximately 4,200 home equity conversion mortgages (HECM, or reverse mortgage loans) secured by vacant properties with a loan balance of approximately $1.3 billion, in a competitive sale. 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. The sale will consist of due and payable Secretary- held reverse mortgage loans. 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. This notice also generally describes the bidding process for the sale and certain entities who are ineligible to bid. This is the seventeenth sale offering of its type and will be held on October 27, 2026.
Full Text
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<title>Federal Register, Volume 91 Issue 183 (Wednesday, September 23, 2026)</title>
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[Federal Register Volume 91, Number 183 (Wednesday, September 23, 2026)]
[Notices]
[Pages 60387-60389]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19458]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6568-N-06]
Notice of HUD Vacant Loan Sales (HVLS 2027-1)
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, (HUD).
ACTION: Notice of sales of reverse mortgage loans.
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SUMMARY: This notice announces HUD's intention to offer approximately
4,200 home equity conversion mortgages (HECM, or reverse mortgage
loans) secured by vacant properties with a loan balance of
approximately $1.3 billion, in a competitive sale. 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. The sale will consist of due and payable Secretary-
held reverse mortgage loans. 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. This notice also generally describes the bidding process for
the sale and certain entities who are ineligible to bid. This is the
seventeenth sale offering of its type and will be held on October 27,
2026.
DATES: For this sale action, the Bidder's Information Package (BIP)
will be made available to qualified bidders on or about September 17,
2026. Bids for the HVLS 2027-1 sale will be accepted on the Bid Date of
October 27, 2026 prior to 1:00 p.m. ET (Bid Date). HUD anticipates that
awards will be made on or about October 30, 2026 (the Award Date).
ADDRESSES: To become an eligible bidder and receive the BIP for the
September sale, prospective bidders must complete, execute, and submit
a Confidentiality Agreement, Qualification Statement and Attestation
Addendum to the 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 HVLS 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 HVLS
2027-1. HUD is offering approximately 4,200 reverse mortgage notes with
a loan balance of approximately $1.3 billion. The mortgage loans
consist of first liens secured by single family, vacant residential
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 HVLS 2027-
1. The BIP also includes the applicable standardized non-negotiable
Conveyance, Assignment and Assumption Agreements for HVLS
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2027-1 (CAA). The CAAs will contain first look requirements.
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 which will be calculated based upon the total dollar value of
the bidder's potential award. Award will be contingent on receiving the
deposit in the timeframe outlined 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 for the mortgage
loans. 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 HVLS
2027-1 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 HVLS 2027-1 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 HVLS 2027-1 as an eligible bidder, a prospective
bidder must complete, execute, and submit a Confidentiality Agreement
and a Qualification Statement (HUD-9611) and an Attestation to the
Qualification Statement that is acceptable to HUD. In past sales,
nonprofit and governmental entities were able to submit an addendum
(HUD-9612), which required additional certifications and documentation
regarding the entity's organizational structure. This additional
information collection will be removed for HVLS 2027-1. Nonprofit and
governmental entities will be required to certify eligibility only
under the Qualification Statement (HUD-9611). The Confidentiality
Agreement, Qualification Statement and Attestation collectively are the
``Qualification Statement 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 HVLS 2027-1 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 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 this Qualification Statement, about mortgage loans offered in
the sale;
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 9 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
[[Page 60389]]
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.
Also, in alignment with Title X of the 21st Century ROAD to Housing
Act, Public Law 119-101, prospective bidders must provide an
attestation that no mortgage loan will result in an acquisition of the
security property in circumstances that would be prohibited by the Act.
Freedom of Information Act Requests
HUD reserves the right, in its sole and absolute discretion, to
disclose information regarding HVLS 2027-1, 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 2027-1, 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 2027-1 and does not establish HUD's
policy for the sale of other mortgage loans.
Joseph M. Gormley,
President of the Government National Mortgage Association performing
the delegable duties of the Assistant Secretary for Housing--Federal
Housing Commissioner.
[FR Doc. 2026-19458 Filed 9-22-26; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on September 23, 2026.
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