[Federal Register Volume 73, Number 107 (Tuesday, June 3, 2008)]
[Notices]
[Pages 31707-31708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-12294]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5113-N-04]


Notice of HUD-Held Multifamily and Healthcare Loan Sale (MHLS 
2008-2)

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Notice of sale of mortgage loans.

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SUMMARY: This notice announces HUD's intention to sell certain 
unsubsidized multifamily and healthcare mortgage loans, without Federal 
Housing Administration (FHA) insurance, in a competitive, sealed bid 
sale (MHLS 2008-2). This notice also describes generally the bidding 
process for the sale and certain persons who are ineligible to bid.

DATES: The Bidder's Information Package (BIP) will be made available to 
qualified bidders on or about May 23, 2008. Bids for the loans must be 
submitted on the bid date, which is currently scheduled for June 25, 
2008. HUD anticipates that awards will be made on or before June 27, 
2008. Closings are expected to take place between July 7, 2008, and 
July 11, 2008.

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 will be available on the HUD Web site at http://www.hud.gov/offices/hsg/comp/asset/mfam/mhls.cfm. The executed 
documents must be mailed and faxed to Corporate Finance Services LLC 
(CFS) and/or Cushman & Wakefield Sale Coordinator, Fax: 1-703-847-2783.

FOR FURTHER INFORMATION CONTACT: John Lucey, Deputy Director, Asset 
Sales Office, Room 3136, Department of Housing and Urban Development, 
451 Seventh Street, SW., Washington, DC 20410-8000; telephone 202-708-
2625, extension 3927. Hearing- or speech-impaired individuals may call 
202-708-4594 (TTY). These are not toll-free numbers.

SUPPLEMENTARY INFORMATION: HUD announces its intention to sell in MHLS 
2008-2 certain unsubsidized mortgage loans (Mortgage Loans) secured by 
multifamily and healthcare properties located throughout the United 
States. The Mortgage Loans are comprised primarily of non-performing 
mortgage loans. A final listing of the Mortgage Loans will be included 
in the BIP. 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 Loans.
    The Mortgage Loans will be stratified for bidding purposes into 
several mortgage loan pools. Each pool will contain Mortgage Loans that 
generally have similar performance, property type, geographic location, 
lien position and other characteristics. Qualified bidders may submit 
bids on one or more pools of Mortgage Loans or may bid on individual 
loans. A mortgagor who is a qualified bidder may submit an individual 
bid on its own Mortgage Loan. Interested Mortgagors should review the 
Qualification Statement to determine whether they may also be eligible 
to qualify to submit bids on one or more pools of Mortgage Loans or on 
individual loans in MHLS 2008-2.

The Bidding Process

    The BIP will describe in detail the procedure for bidding in MHLS 
2008-2. The BIP will also include a standardized nonnegotiable loan 
sale agreement (Loan Sale Agreement). As part of its bid, each bidder 
must submit a deposit equal to the greater of $100,000 or 10% of the 
bid price. In the event the bidder's aggregate bid is less than 
$100,000.00, the minimum deposit shall be not less than fifty percent 
(50%) of the bidder's aggregate bid. HUD will evaluate the bids 
submitted and determine the successful bids in its sole and absolute 
discretion. If a bidder is successful, the bidder's deposit will be 
non-refundable and will be applied toward the purchase price. Deposits 
will be returned to unsuccessful bidders. Closings are scheduled to 
occur between July 7, 2008, and July 11, 2008.
    These are the essential terms of sale. The Loan Sale Agreement, 
which will be included in the BIP, will contain additional terms and 
details. To ensure a competitive bidding process, the terms of the 
bidding process and the Loan Sale Agreement are not subject to 
negotiation.

Due Diligence Review

    The BIP will describe the due diligence process for reviewing loan 
files in MHLS 2008-2. Qualified bidders will be able to access loan 
information remotely via a high-speed Internet connection. Further 
information on performing due diligence review of the Mortgage Loans 
will be provided in the BIP.

Mortgage Loan Sale Policy

    HUD reserves the right to add Mortgage Loans to or delete Mortgage 
Loans from MHLS 2008-2 at any time prior to the Award Date. HUD also 
reserves the right to reject any and all bids, in whole or in part, 
without prejudice to HUD's right to include any Mortgage Loans in a 
later sale. Mortgage Loans will not be withdrawn after the Award Date 
except as is specifically provided in the Loan Sale Agreement.
    This is a sale of unsubsidized mortgage loans. Pursuant to section 
204(a) of the Departments of the Department of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act of 1997, 12 U.S. C. 1715z-11a(a).

Mortgage Loan Sale Procedure

    HUD selected a competitive sale as the method to sell the Mortgage 
Loans. This method of sale optimizes HUD's

[[Page 31708]]

return on the sale of these Mortgage 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 Mortgage Loans.

Bidder Eligibility

    In order to bid in the sale, a prospective bidder must complete, 
execute and submit both a Confidentiality Agreement and a Qualification 
Statement acceptable to HUD. The following individuals and entities are 
ineligible to bid on any of the Mortgage Loans included in MHLS 2008-2:
    (1) Any employee of HUD, 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;
    (2) Any individual or entity that is debarred, suspended, or 
excluded from doing business with HUD pursuant to Title 24 of the Code 
of Federal Regulations, Part 24;
    (3) Any contractor, subcontractor and/or consultant or advisor 
(including any agent, employee, partner, director, principal or 
affiliate of any of the foregoing) who performed services for or on 
behalf of HUD in connection with MHLS 2008-2;
    (4) Any individual who was a principal, partner, director, agent or 
employee of any entity or individual described in subparagraph 3 above, 
at any time during which the entity or individual performed services 
for or on behalf of HUD in connection with MHLS 2008-2;
    (5) Any individual or entity that uses the services, directly or 
indirectly, of any person or entity ineligible under subparagraphs 1 
through 4 above to assist in preparing any of its bids on the Mortgage 
Loans;
    (6) Any individual or entity which employs or uses the services of 
an employee of HUD (other than in such employee's official capacity) 
who is involved in MHLS 2008-2;
    (7) Any mortgagor (or affiliate of a mortgagor) that failed to 
submit to HUD on or before June 18, 2008, audited financial statements 
for fiscal years 2000 through 2007 for a project securing a Mortgage 
Loan;
    (8) Any individual or entity and any Related Party (as such term is 
defined in the Qualification Statement) of such individual or entity 
that is a mortgagor in any of HUD's multifamily housing programs and 
that is in default under such mortgage loan or is in violation of any 
regulatory or business agreements with HUD, unless such default or 
violation is cured on or before June 18, 2008;
    (9) Any entity or individual that serviced or held any Mortgage 
Loan at any time during the 2-year period prior to May 1, 2008, is 
ineligible to bid on such Mortgage Loan or on the pool containing such 
Mortgage Loan, but may bid on loan pools that do not contain Mortgage 
Loans that they have serviced or held at any time during the 2-year 
period prior to May 1, 2008; and
    (10) Also ineligible to bid on any Mortgage Loan are: (a) Any 
affiliate or principal of any entity or individual described in the 
preceding sentence (paragraph 9); (b) any employee or subcontractor of 
such entity or individual during that 2-year period; or (c) 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 
Mortgage Loan.
    Prospective bidders should carefully review the Qualification 
Statement to determine whether they are eligible to submit bids on the 
Mortgage Loans in MHLS 2008-2.

Freedom of Information Act Requests

    HUD reserves the right, in its sole and absolute discretion, to 
disclose information regarding MHLS 2008-2, including, but not limited 
to, the identity of any successful 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 MHLS 2008-2, HUD will 
have the right to 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 MHLS 2008-2 and does not establish HUD's 
policy for the sale of other mortgage loans.

    Dated: May 27, 2008.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. E8-12294 Filed 6-2-08; 8:45 am]
BILLING CODE 4210-67-P