[Federal Register Volume 86, Number 213 (Monday, November 8, 2021)]
[Notices]
[Pages 61773-61775]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24294]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6297-N-01]


Notice of HUD Vacant Loan Sales (HVLS 2022-1)

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, U.S. Department of Housing and Urban Development (HUD).

ACTION: Notice of sales of reverse mortgage loans.

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SUMMARY: This notice announces HUD's intention to competitively offer 
multiple residential reverse mortgage pools, including six multi-loan 
pools and one single asset pool, consisting of approximately 1,700 
reverse mortgage notes secured by vacant properties with a loan balance 
of approximately $420 million. The Secretary will prioritize bids on 
some of these assets to qualified non-profit or unit of state or local 
government bidders. This notice also generally describes the bidding 
process for the sale and certain persons who are ineligible to bid. 
This is the seventh sale offering of its type and the sale will be held 
on December 1, 2021.

DATES: For this sale action, the Bidder's Information Package (BIP) was 
made available to qualified bidders on October 21, 2021. Bids for the 
HVLS 2022-1 sale will be accepted on the Bid Date of December 1, 2021 
(Bid Date). HUD anticipates that award(s) will be made on or about 
December 3, 2021 (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 in the announcement posted on the HUD 
website: https://www.hud.gov/program_offices/housing/comp/asset/hsgloan 
or on the Program Financial Advisor (PFA), Falcon Capital Advisors, 
website: http://www.falconassetsales.com.
    Due to remote work processes during the COVID-19 National Emergency 
and limited access to standard mail, electronic submission of executed 
documents via email at [email protected] is preferred. 
Prospective bidders may utilize digital signatures on the 
electronically submitted documents. If you do not 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: Dan Wentworth, HUD HVLS Loan Sale 
Coordinator. eFax: 1-202-393-4125.

FOR FURTHER INFORMATION CONTACT: John Lucey, Director, Office of Asset 
Sales, Room 3136, 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). Persons with hearing 
or speech impairments may access this number through TTY by calling the 
toll-free Federal Relay at 800-877-8339 (this is a toll-free number).

SUPPLEMENTARY INFORMATION: This notice announces HUD's intention to 
sell in HVLS 2022-1 due and payable Secretary-held reverse mortgage 
loans.

[[Page 61774]]

HUD is offering six multiple residential reverse mortgage pools 
totaling approximately 1,700 reverse mortgage notes with a loan balance 
of approximately $420 million. 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. Qualified non-profit or unit of state or local 
government bidders will have the opportunity to bid on all loans and 
may receive a priority bidding opportunity for up to 50 percent of the 
loans in five of the multi-loan pools (Carve-Out Pool).
    HUD also intends to include in HVLS 2022-1 a single asset pool for 
sale consisting of a reverse mortgage loan secured by an Illinois 
multi-unit single-family property, where there is no surviving borrower 
or non-borrowing spouse but some units are currently tenant-occupied. 
This single asset pool has a loan balance of approximately $158 
thousand. For one of the multi-loan pools and the single asset pool, 
HUD will prioritize bids from non-profit or unit of state or local 
government bidders (each a Priority Pool).
    A listing of the mortgage loans will be 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 loan pools.

The Bidding Process

    The BIP describes in detail the procedure for bidding in HVLS 2022-
1. The BIP also includes a standardized non-negotiable Conveyance, 
Assignment and Assumption Agreement for HVLS 2022-1 (CAA). 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.
    This notice provides some of the basic terms of sale. The CAA, 
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 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 HVLS 2022-1 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 reverse mortgage loans 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 HVLS 2022-1 reverse mortgage loans 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 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 HVLS 
2022-1, HUD has determined that this method of sale optimizes HUD's 
return on the sale of these 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 due and 
payable mortgage loans.

Bidder Ineligibility

    In order to bid in HVLS 2022-1 as a qualified bidder, a prospective 
bidder must complete, execute, and submit both a Confidentiality 
Agreement and a Qualification Statement acceptable to HUD. In the 
Qualification Statement, the prospective bidder must provide certain 
representations and warranties regarding the prospective bidder, 
including but not limited to (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 
2022-1 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 
any previous mortgage loan sale of HUD;
    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;

[[Page 61775]]

    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 10 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 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.

Freedom of Information Act Requests

    HUD reserves the right, in its sole and absolute discretion, to 
disclose information regarding HVLS 2022-1, 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 2022-1, 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 2022-1 and does not establish HUD's 
policy for the sale of other mortgage loans.

Janet Golrick,
Acting, Chief of Staff, Office of Housing--Federal Housing 
Administration.
[FR Doc. 2021-24294 Filed 11-5-21; 8:45 am]
BILLING CODE 4210-67-P