[Federal Register Volume 80, Number 135 (Wednesday, July 15, 2015)]
[Notices]
[Pages 41510-41512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-17271]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5882-N-01]
Notice of Single Family Loan Sales (SFLS 2015-1)
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 2015-1, 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 is the second sale offering of Fiscal Year (FY) 2015 and the
sale will be held on July 15, 2015.
DATES: For this sale action, the Bidder's Information Package (BIP) was
made available to qualified bidders on or about June 15, 2015. Bids for
the 2015-1 sale will be accepted on the Bid Date of July 15, 2015 (Bid
Date). HUD anticipates that award(s) will be made on or about July 16,
2015 (the Award Date).
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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 or via: http://www.verdiassetsales.com.
Please mail and fax executed documents to Verdi Consulting, Inc.:
Verdi Consulting, Inc., 8400 Westpark Drive, 4th Floor, McLean, VA
22102, Attention: HUD SFLS Loan Sale Coordinator, Fax: 1-703-584-7790.
FOR FURTHER INFORMATION CONTACT: John Lucey, Director, Asset Sales
Office, Room 3136, 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
2015-1 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 Loans will be offered in two pool types. The Department will
offer national loan pools for bid and will also offer regionally-based
pools, with additional purchaser requirements, that are called the
Neighborhood Stabilization Outcome pools. One of these Neighborhood
Stabilization Outcome pools, in the Detroit Metropolitan Statistical
Area, is designated for bidding by qualified non-profit or unit of
local government entities only.
The Bidding Process
The BIP describes in detail the procedure for bidding in SFLS 2015-
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 SFLS
2015-1, settlements are expected to take place on or about August 14,
2015, and September 18, 2015.
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 2015-1 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 at least
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 2015-1 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 SFLS
2015-1, 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, and
provides the quickest and most efficient vehicle for HUD to dispose of
the Mortgage Loans.
Bidder Ineligibility
In order to bid in SFLS 2015-1 as a qualified bidder, a prospective
bidder must complete, execute and submit both a Confidentiality
Agreement and a Qualification Statement acceptable to HUD and
applicable to the loan pool being purchased. In the Qualification
Statement, the prospective bidder must provide certain representations
and warranties regarding (i) a prospective bidder, (ii) a prospective
bidder's board of directors, (iii) a prospective bidder's direct
parent, (iii) a prospective bidder's subsidiaries, and (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 (``Related
Entities''), and (v) a prospective bidder's repurchase lenders. The
prospective bidder is ineligible to bid on any of the Mortgage Loans
included in SFLS 2015-1 if the prospective bidder, its Related Entities
or its repurchase lenders, is 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 Title 2 of the Code of Federal
Regulations, 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
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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 that knowingly uses the services,
directly or indirectly, of any person or entity ineligible under 1
through 11 to assist in preparing any of its bids on the Mortgage
Loans;
10. 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
11. A Participating Servicer that contributed Mortgage Loans to a
pool on which the Bidder is placing a bid.
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 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
Mortgage Loan or on the pool containing such Mortgage Loan because it
is an entity or individual that:
(a) Serviced or held any Mortgage Loan at any time during the two-
year 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 two-year 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 Mortgage Loan.
Freedom of Information Act Requests
HUD reserves the right, in its sole and absolute discretion, to
disclose information regarding SFLS 2015-1, 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 2015-1, 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 SFLS 2015-1 and does not establish HUD's
policy for the sale of other mortgage loans.
Dated: July 1, 2015.
Edward L. Golding,
Principal Deputy Assistant Secretary for Housing.
[FR Doc. 2015-17271 Filed 7-14-15; 8:45 am]
BILLING CODE 4210-67-P