[Federal Register Volume 76, Number 229 (Tuesday, November 29, 2011)]
[Notices]
[Pages 73654-73655]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-30775]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5588-N-01]


Notice of Single Family Loan Sales (SFLS 2012-1)

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 2012-1, 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 first sale of Fiscal Year (FY) 2012 is scheduled for December 
7, 2011. FHA also expects to conduct two additional sales in FY 2012 in 
April and September 2012.

DATES: For this sale action, the Bidder's Information Package (BIP) was 
made available to qualified bidders on or about November 9, 2011. Bids 
for the SFLS 2012-1 sale must be submitted on the bid date, which is 
currently scheduled for December 7, 2011 (Bid Date). HUD anticipates 
that award(s) will be made on or about December 8, 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 via the HUD Web site at: http://www.hud.gov/sfloansales or via: http://www.DebtX.com. Please mail and 
fax executed documents to SEBA Professional Services: SEBA Professional 
Services, c/o The Debt Exchange, 133 Federal Street, 10th Floor, 
Boston, MA 02111, Attention: HUD SFLS Loan Sale Coordinator, Fax: 1-
(617) 531-3499.

FOR FURTHER INFORMATION CONTACT: John Lucey, Deputy Director, Asset 
Sales Office, Department of Housing and Urban Development, 451 Seventh 
Street SW., Room 3136, Washington, DC 20410-8000; telephone number 
(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 
2012-1 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 2012-
1. 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 
2012-1 sale action, settlements are expected to take place on or about 
December 22, 2011 and February 14, 2012.
    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 2012-1 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. Deliveries of Mortgage Loans will occur in two monthly 
settlements and the number of Mortgage Loans delivered will vary 
depending upon the number of Mortgage Loans the Participating Servicers 
have submitted for the payment of an FHA insurance claim. The 
Participating Servicers will not be able to submit claims on loans that 
are not included in the Mortgage Loan Portfolio set forth in the BIP.
    There can be no assurance that any Participating Servicer will 
deliver a minimum number of Mortgage Loans to HUD or that a minimum 
number of Mortgage Loans will be delivered to the Purchaser.
    The SFLS 2012-1 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 for this specific sale transaction. For the 
SFLS 2012-1, HUD has determined that 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,

[[Page 73655]]

and provides the quickest and most efficient vehicle for HUD to dispose 
of the Mortgage Loans.

Bidder Ineligibility

    In order to bid in the 2012-1 sale as a qualified bidder, a 
prospective bidder must complete, execute and submit both a 
Confidentiality Agreement and a Qualification Statement acceptable to 
HUD. If any of the following apply to (i) A prospective bidder, (ii) 
the prospective bidder's significant (>10%) owners and persons with 
authority or control over the prospective bidder; (iii) any 
individuals/entities related to the prospective bidder (``Related 
Entities'' as defined below) or (iv) significant (>10%) owners and 
person with authority or control of such Related Entities, then the 
prospective bidder is ineligible to bid on any of the Mortgage Loans 
included in SFLS 2012-1. Related Entities, as used in this Notice, is 
defined as: (a) two entities that have, (i) significant common purposes 
and substantial common membership or (ii) directly or indirectly, 
substantial common direction or control; or (b) Either entity owns 
(directly or through one or more entities) a 50 percent or greater 
interest in the capital or profits of the other. For this purpose, 
entities treated as related entities under this definition shall be 
treated as one entity.
    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 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.
    2. 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 Title 2 of the Code of Federal 
Regulations, Parts 180 and 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 single family asset 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 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;
    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; or
    10. An entity that has had its right to act as a Government 
National Mortgage Association (Ginnie Mae) issuer and its interest in 
mortgages backing Ginnie Mae mortgage-backed securities extinguished 
and terminated by Ginnie Mae.

Freedom of Information Act Requests

    HUD reserves the right, in its sole and absolute discretion, to 
disclose information regarding SFLS 2012-1, 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 SFLS 2012-1, 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 2012-1 and does not establish HUD's 
policy for the sale of other mortgage loans.

    Dated: November 23, 2011.
Carol Galante,
Acting Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2011-30775 Filed 11-28-11; 8:45 am]
BILLING CODE 4210-67-P