[Federal Register Volume 76, Number 175 (Friday, September 9, 2011)]
[Notices]
[Pages 55936-55937]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-23032]



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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5502-N-03]


Notice of Single Family Loan Sales (SFLS 2011-3)

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

ACTION: Notice of sales of mortgage loans.

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SUMMARY: This notice announces HUD's intention to competitively sell 
certain unsubsidized single family mortgage loans, in a sealed bid sale 
offering called SFLS 2011-3, without Federal Housing Administration 
(FHA) mortgage insurance. This notice also generally describes the 
bidding process for the sale and certain persons who are ineligible to 
bid. This third sale of Fiscal Year (FY) 2011 is scheduled for 
September 14, 2011.

DATES: For this sale action, the Bidder's Information Package (BIP) was 
made available to qualified bidders on August 15, 2011. Bids for the 
SFLS 2011-3 sale must be submitted on the bid date, which is currently 
scheduled for September 14, 2011 (Bid Date). HUD anticipates that 
award(s) will be made on or about September 15, 2011 (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 on the HUD Web site at: http://www.hud.gov/sfloansales. Please mail and fax executed documents to 
HUD's Asset Sales Office:
    Asset Sales Office, United States Department of Housing and Urban 
Development, 451 7th Street, SW., Room 3136, Washington, DC 20410, 
Attention: Single Family Sale Coordinator, Fax: 202-708-2771.

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 SFLS 
2011-3 certain unsubsidized non-performing mortgage loans (Mortgage 
Loans) secured by single family properties located throughout the 
United States. A listing of the Mortgage Loans is 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 Loans.

The Bidding Process

    The BIP describes in detail the procedure for bidding in SFLS 2011-
3. The BIP also includes a standardized non-negotiable Conveyance, 
Assignment and Assumption Agreement (CAA Agreement). 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. For the SFLS 
2011-3 sale action, settlements are expected to take place on October 
13, 2011 and November 17, 2011.
    This notice provides some of the basic terms of sale. The CAA 
Agreement, 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 Agreement 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 SFLS 2011-3 at 
any time prior to the Award Date. HUD also reserves the right to reject 
any and all bids, in whole or in part, and include any Mortgage Loans 
in a later sale. Mortgage Loans will not be withdrawn after the Award 
Date except as specifically provided in the CAA Agreement.
    The SFLS 2011-3 sale of Mortgage Loans are assigned to HUD pursuant 
to section 204(a)(1)(A) of the National Housing Act as amended under 
Title VI of the Departments of Veterans Affairs and Housing and Urban 
Development and Independent Agencies Appropriations Act, 1999. The sale 
of the 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. This method of sale optimizes HUD's 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 Ineligibility

    In order to bid in the SFLS 2011-3 sale, a prospective qualified 
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 SFLS 2011-3:
    (1) An 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) An 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, and Title 2 of the Code of Federal 
Regulations, Part 2424;
    (3) An individual or entity that has been 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.
    (4) An individual or entity that has been 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;
    (5) A 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 the Sales;
    (6) An individual or entity that uses the services, directly or 
indirectly, of any person or entity ineligible under subparagraphs 1 
through 3 above to assist in preparing any of its bids on the Mortgage 
Loans;
    (7) An 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 single family asset sales;
    (8) An entity or individual that serviced or held any Mortgage Loan 
at

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any time during the 2-year period prior to the Award Date is ineligible 
to bid on such Mortgage Loan or on the pool containing such Mortgage 
Loan, and
    (9) An entity or individual that is: (a) Any affiliate or principal 
of any entity or individual described in the preceding sentence (sub-
paragraph 8); (b) any employee or subcontractor of such entity or 
individual during that 2-year period prior to Award Date; 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.

Freedom of Information Act Requests

    HUD reserves the right, in its sole and absolute discretion, to 
disclose information regarding SFLS 2011-3, 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 SFLS 2011-3, 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 SFLS 2011-3 and does not establish HUD's 
policy for the sale of other mortgage loans.

    Dated: August 30, 2011.
Carol Galante,
Acting Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2011-23032 Filed 9-8-11; 8:45 am]
BILLING CODE 4210-67-P