[Federal Register Volume 89, Number 136 (Tuesday, July 16, 2024)]
[Proposed Rules]
[Pages 57798-57810]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15024]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 203, 206, and 291
[Docket No. FR-6051-P-02]
Federal Housing Administration (FHA): Single Family Sale Program
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, Department of Housing and Urban Development (HUD).
ACTION: Proposed rule.
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SUMMARY: In a Single Family Sale (the ``Program''), eligible single
family mortgage loans insured by the Federal Housing Administration
(FHA) are assigned to the Secretary of the Department of Housing and
Urban Development (HUD) in exchange for claim payments, and mortgage
notes are then sold, without FHA insurance, to qualified purchasers in
a manner that seeks to maximize recoveries and strengthen HUD's Mutual
Mortgage Insurance Fund (MMIF), and to achieve HUD's operational goals
for the MMIF. The Program has operated as a demonstration since 2002.
This proposed rule would transition the Program from a demonstration to
a permanent Program by revising HUD's Single Family Mortgage Insurance,
Home Equity Conversion Mortgages, and Disposition of HUD-Acquired and -
Owned Single Family Property regulations to provide for the sale of
HUD-held single family forward mortgages and Home Equity Conversion
Mortgages (HECMs), through Competitive Sale of Single Family Loans and
Direct Sale of Single Family Loans. This proposed rule would also
remove existing regulations on Disposition of HUD-Acquired and -Owned
Single Family Property regulations which provided for a retired program
that handled the sale of HUD-held single family mortgage loans.
DATES: Comment due date: September 16, 2024.
ADDRESSES: Interested persons are invited to submit comments regarding
this document. Comments should refer to the above docket number and
title. There are two methods for submitting comment.
1. Submission of comments by mail: Comments may be submitted by
mail to the HUD Regulations Division, Office of Housing, Department of
Housing and Urban Development, 451 7th Street SW, Washington, DC 20410-
8000; telephone: (202) 708-2625 (this is not a toll-free number) or
toll free (800) 481-9895. HUD welcomes and is prepared to receive calls
from individuals who are deaf or hard of hearing, as well as
individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
2. Electronic submission of comments: Comments may be submitted
electronically through the Federal e-Rulemaking Portal at
www.regulations.gov. HUD strongly encourages commenters to submit
comments electronically. Electronic submission of comments allows the
commenter maximum time to prepare and submit a comment, ensures timely
receipt by HUD, and enables HUD to make the comments immediately
available to the public. Comments submitted electronically through the
www.regulations.gov website can be viewed by other commenters and
interested members of the public. Commenters should follow instructions
provided on this site to submit comments electronically.
Note: To receive consideration as public comments, comments
must be submitted through one of the two methods specified above.
Again, all submissions must refer to the docket number and title of
this document.
No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
3. Public inspection of public comments: All properly submitted
comments and communications submitted to HUD will be available for
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the
above address. Due to security measures at the HUD Headquarters
building, an appointment to review the public comments must be
scheduled in advance by calling the Regulations Division at (202) 402-
5731 (this is not a toll-free number). HUD welcomes and is prepared to
receive calls from individuals who are deaf or hard of hearing, as well
as individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
Copies of all comments submitted are available for inspection and
downloading at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: John Lucey, Director, FHA Office of
Asset Sales, Office of Housing, Department of Housing and Urban
Development, 451 7th Street SW, Washington, DC 20410-8000; telephone:
(202) 708-2625 (this is not a toll-free number), or toll-free: (800)
481-9895. HUD welcomes and is prepared to receive calls from
individuals who are deaf or hard of hearing, as well as from
individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
SUPPLEMENTARY INFORMATION:
I. Background
Under section 204 of the National Housing Act,\1\ HUD has general
authority to pay insurance claims and dispose of mortgages and
properties acquired under the FHA single family mortgage insurance
programs. Section 204(g) specifically grants HUD broad discretion to
implement a range of disposition alternatives. The National Housing Act
also requires HUD ensure the mutual mortgage insurance fund (MMIF)
remains financially sound. HUD must effectively manage HUD's defaulted
assets and minimize losses to the MMIF to carry out its fiduciary
responsibility to ensure the financial soundness of the MMIF.
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\1\ See 12 U.S.C. 1710 (2010), as amended by section 601 of the
Fiscal Year 1999 Departments of Veterans Affairs and Housing and
Urban Development and Independent Agencies Appropriations Act (Pub.
L. 105-276, approved October 21, 1998) (``FY 1999 Appropriations
Act'').
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Since 2002, HUD has operated a demonstration program \2\ to
implement its broad disposition authority with respect to mortgages and
properties acquired under the FHA single family mortgage insurance
programs. By notice published in the Federal Register on February 5,
2002, HUD announced the establishment of the Accelerated Claim and
Asset Disposition (ACD)
[[Page 57799]]
Demonstration to ``address any programmatic concerns'' and ``assess its
success and determine whether to implement the ACD process on a
permanent basis, throughout the country.'' \3\ On October 29, 2002, HUD
responded to public comments and conducted its first sale of defaulted
mortgages through the ACD Demonstration.\4\ HUD has continuously
operated the ACD demonstration for the purpose of paying insurance
claims and disposing of mortgages and related properties acquired under
the FHA single family mortgage insurance programs.
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\2\ HUD has used various names to refer to the demonstration
program, including the Accelerated Claim and Asset Disposition (ACD)
Demonstration, the Single Family Loan Sales (``SFLS'') Program, and
the Distressed Asset Stabilization Program (``DASP'').
\3\ See Notice of FHA Accelerated Claim Disposition
Demonstration, 67 FR 5418 (February 5, 2002).
\4\ See Notice of FHA Accelerated Claim Disposition
Demonstration, 67 FR 66038 (October 29, 2002).
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Absent the Program, if a borrower is unable to resume their
mortgage payments after loss mitigation, the mortgagee in most cases
would be required to foreclose the defaulted loan to perfect an
insurance claim. If the property cannot be sold to a third party at
foreclosure or a second-chance auction, the mortgagee may file a
conveyance claim, which gives the property to HUD in exchange for
receiving the FHA mortgage insurance claim payment. Prior to filing the
conveyance claim, the mortgagee will incur legal and holding costs for
which the mortgagee may seek reimbursement from HUD through claim
payment. A property conveyed to HUD increases HUD's Real Estate Owned
(REO) inventory, posing an additional financial burden on the MMIF for
asset management costs. As an alternative to filing a conveyance claim,
for a forward loan that has been foreclosed, HUD will pay a claim
without conveyance of title claim from the MMIF to the mortgagee if the
borrower defaults and the mortgagee loses money after selling the house
in a foreclosure or post-foreclosure sale. Disposing of delinquent
forward mortgage loans shortens the period between default and claim
payment, reducing the financial exposure to these insurance funds for
costs incurred after default.
For a HECM that has been foreclosed, the mortgagee cannot file a
conveyance claim but can sell the foreclosed property to a third party
and receive claim payment if the mortgagee is owed more than it
receives from such sale. For HECMs endorsed before 2009, HUD pays
claims from the General Insurance (GI) Fund. For HECMs endorsed in 2009
or after, HUD pays claims from the MMIF.
HUD's sale of defaulted loans is generally intended to yield a
recovery to the MMIF that meets or exceeds the recovery obtained as a
result of a foreclosure-based claim.
When a borrower passes away after assignment of a HECM, HUD incurs
costs associated with real property when it is vacant or abandoned.
HUD's servicing tenure and attempts to foreclose can be delayed by
title or jurisdictional issues and backlogs resulting from high volume.
These issues result in higher servicing costs along with additional
inspection and property preservation costs while the HECMs remain in
HUD's portfolio. After foreclosure, HECMs that converted to REO are
added to HUD's inventories, increasing asset management costs to
protect and dispose of the properties. Disposition of eligible assigned
HECMs, such as HECMs secured by vacant and abandoned properties, can
result in significant cost savings to the MMIF and GI Fund, as
applicable, and enable better and more timely resolution of these
assets.
On June 5, 2006, HUD issued an advance notice of proposed
rulemaking (``ANPR'') soliciting public comment on HUD's ACD
program.\5\ The ANPR solicited public comments to make ``possible
improvements to the program,'' including the most efficient way to
``maximize the return to the FHA insurance fund'' by ``minimiz[ing] the
time an asset is held.'' \6\
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\5\ See Accelerated Claim and Asset Disposition (ACD) Program;
Advanced Notice of Proposed Rulemaking, 71 FR 32392 (June 5, 2006).
\6\ Id.
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On April 30, 2007, HUD published a regulatory agenda providing
public notice that FHA had withdrawn the ANPR effective March 1,
2007.\7\ After this action, HUD adopted additional modifications to the
demonstration, including changing the disposition method from joint
venture to whole loan sales.
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\7\ See HUD Semiannual Regulatory Agenda, 72 FR 22694 (April 30,
2007).
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II. Advance Notice of Proposed Rulemaking (ANPR)
On May 6, 2019, HUD published another ANPR for the Single Family
Loan Sale Program.\8\ The ANPR presented questions to commenters on
asset eligibility, the assignment claims process, loan delivery, sale
structure, purchaser requirements, and enforcement mechanisms.
Commenters provided responses addressing the Program's positive and
negative effect on the community; obstacles during post-sale servicing;
the loan pooling and scoring process; and participating servicer
agreements.
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\8\ See Federal Housing Administration (FHA): Single Family Loan
Sale Program; Advance Notice of Proposed Rulemaking and Request for
Public Comment, 84 FR 19784 (May 6, 2019).
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Commenters expressed different perspectives on whether the current
program benefits the community. Commenters stated the loan sale program
stabilizes communities and provides borrowers, for whom all FHA-
prescribed loss mitigation efforts have failed, a second chance to save
their homes and avoid foreclosure, while producing a better financial
outcome for taxpayers. Other commenters stated the current program
inadequately protects homeowners, damages communities, and creates
neighborhood instability. Many commenters stated the program increases
single family rental housing and decreases homeownership because it
primarily facilitates sales to single family rental property owners.
Commenters noted these purchasers include private equity funds, real
estate investment trusts (REITs), and other large investors, which can
cause neighborhood instability. Commenters also referenced allegations
the program has a disparate impact on communities of color. To remedy
the adverse effects of the current program, commenters suggested HUD
strike an appropriate balance between protecting the MMIF, the
interests of communities, and the need to ensure fair treatment of
borrowers.
Commenters also identified additional obstacles of the Single
Family Loan Sale Program that limit participation in the program and
the sale of loans. These obstacles included irregularly scheduled sales
with short response timeframes, which leads to administrative and cost
burdens as well as difficulty pursuing foreclosure or helping borrowers
with loss mitigation efforts. Other commenters stated HUD's program
requires participating servicers to spend significant resources in
lengthy and expensive conflict resolution over contractual
representations and warranties. Commenters argued FHA should apply
outcome requirements to all loan sale pools, not just Neighborhood
Stabilization Outcome (NSO) pools. Commenters also stated the post-sale
servicing failed to require a reasonable modification program for
borrowers whose loans have been sold, and HUD has not required loan
sale purchasers to consider specific options for borrowers in default.
Many commenters offered suggestions on how HUD should structure
loan pooling. Commenters recommended HUD set aside pools of loan sales
for nonprofits as well as arrange loan sales
[[Page 57800]]
in small, manageable numbers in limited geographic areas. Commenters
also discussed nonprofit and for-profit partnerships, both encouraging
these arrangements but also noting the importance of clearly defining
the roles and decision-making authority of each partner. Other
commenters preferred larger pool sizes to minimize the negative impact
of fixed transaction costs on bids. Commenters also recommended a
``last look'' option for nonprofit corporations that compete at the
national level to match the highest bidder purchase offer. Similarly,
commenters stated HUD should establish and publish limits on the
disposition of properties acquired through the program to other
entities besides owner-occupants, nonprofit community organizations,
purchasers who will commit to providing affordable rentals, or land
banks.
Commenters also offered suggestions to improve the Participating
Servicer Agreement (PSA) to include: clearly defining the requirements
and timeframes, such as a clear deadline for the delivery of collateral
files to the purchaser and the endorsed Note; providing a deadline for
the submission of trailing expenses by the prior servicer for
reimbursement; providing transfer instructions with time limitations
for submitting documentation; and clarifying violations that would
trigger repurchase or re-conveyance. Commenters also recommended the
PSA provide updated documentation for the interim servicing period to
include servicing notes and loss mitigation actions since the date of
transfer. Commenters stated the PSA should establish a servicing fee
for awarded loans based on current market costs for the interim
servicing period.
For additional information, all public comments can be viewed at
www.regulations.gov, under docket number HUD-2019-0039. (See https://www.regulations.gov/docket/HUD-2019-0039)
III. Proposed Rule Changes
This proposed rule seeks to combine what HUD has previously called
the Single Family Loan Sale Program for forward loans (SFLS) and the
HUD-held Vacant Loan Sales Program for HECMs (HVLS) into one permanent
program that will be referred to as the Single Family Sale Program (the
``Program''). The proposed rule would combine SFLS and HVLS into the
Program, although HUD anticipates it will continue to sell forward
loans and reverse loans in distinct pools or sales. The proposed rule
would also give FHA flexibility to maximize returns to the MMIF in
cases when a loan sale would help minimize losses from the disposition
of each asset. The proposed rule also seeks to provide flexibility for
the management of defaulted loans and more efficiently accept
assignment and dispose of assigned mortgages through loan sales. The
proposed rule would specify certain claim requirements related to loss
mitigation loan eligibility for a Single Family Sale and provide for
HUD to withdraw or require repurchase of a Single Family Loan that does
not satisfy those requirements. The proposed rule would require
Participating Servicers comply with any loan sale notification
requirement to borrowers (Loan Sale Notification) as prescribed by the
Secretary through notice, such as a Sale Notice or Mortgagee Letter.
The proposed rule would contain post-sale requirements which include a
first-look sale requirement for Purchaser-held real estate owned
property resulting from foreclosure or deed-in-lieu of foreclosure of a
Single Family Loan.
A new subpart G proposes to codify the demonstration structure and
process, which includes improvements identified and tested over the
course of the demonstration, as a permanent program. HUD is also
proposing to remove subpart D of 24 CFR part 291 in its entirety
because the policies and procedures established under subpart D do not
govern active sales of HUD-held single family loans. Lastly, HUD
proposes related changes to the FHA single family mortgage assignment
claim requirements by adding a section to 24 CFR parts 203 and 206 to
reflect payments made when a loan is assigned as part of the new loan
sale process.
Section 203.413--Amount of Payment--Forward Loan Sale Assignments
Section 203.413 provides that when a forward mortgage loan is
assigned because of a Sale Notice, pursuant to new subpart G, the
Commissioner shall pay to the mortgagee the unpaid principal balance of
the loan at the time of assignment in accordance with the PSA executed
by the Secretary and the mortgagee. This section also describes the
process and procedures for a mortgagee's claim for insurance, including
the Commissioner's manner of calculating the assignment claim payment
based on the regulation and the Conveyance, Assignment and Assumption
Agreement (CAA), which includes what the Commissioner will consider as
allowable reimbursable expenses in the claim, and when the mortgagee
fails to meet certain claim submission requirements. Also, this section
requires the mortgagee determine and certify the mortgage satisfies the
Commissioner's acceptability criteria, which includes satisfaction of
the Single Family loss mitigation eligibility requirements and a
prohibition on inclusion of low-value mortgages secured by vacant
properties, for the Single Family Sale. This section provides for claim
payment reductions where the Participating Servicer fails to take
required actions as specified in the PSA, such as curing breaches in a
timely manner. Section 203.413 also sets forth HUD's grounds for
curtailing debenture interest and rejecting a claim when claims are
filed or in a suspended status after claim submission deadlines are
missed.
Section 206.130--Amount of Payment--HECM Sale Assignments
Section 206.130 mirrors Sec. 203.413 and provides the same process
for paying HECM mortgages when a HECM mortgage is assigned because of a
Sale Notice. Pursuant to new subpart G, the Commissioner shall pay to
the mortgagee the unpaid principal balance of the loan at the time of
assignment and an amount calculated in accordance with the PSA executed
by the Secretary and the mortgagee. Section 206.130 also describes the
process and procedures for a mortgagee's claim for insurance, including
the Commissioner's manner of calculating the assignment claim payment
based on the regulation and the PSA, which includes what the
Commissioner will consider as allowable reimbursable expenses in the
claim, and when the mortgagee fails to meet certain claim submission
requirements. This section also requires the mortgagee to determine and
certify the mortgage satisfies the Commissioner's acceptability
criteria, which includes satisfaction of the Single Family loss
mitigation eligibility requirements, for the Single Family Sale. This
section provides for claim payment reductions where the Participating
Servicer fails to take required actions as noted in the PSA, such as
curing breaches in a timely manner. Section 206.130 also sets forth
HUD's grounds for curtailing debenture interest and rejecting a claim
when claims are filed or in a suspended status after claim submission
deadlines are missed.
Section 291.601 Definitions
Section 291.601 provides definitions for the following terms, which
were routinely used in past Single Family Loan Sales (SFLS) and HUD-
held Vacant Loan Sales (HVLS). FHA-approved mortgagees that have
contributed eligible loans for sales, and bidders in the SFLS and HVLS
programs
[[Page 57801]]
are familiar with these terms, as they are defined in the materials,
such as the Participating Servicing Agreement (PSA); Desk Guide;
Conveyance, Assignment and Assumption Agreement (CAA); and Bidder
Information Package (BIP) provided by HUD for each sale. The following
terms pertain to the HUD FHA Single Family Loans sold and to the entire
loan sale process, including the opening of HUD's Aggregate Loan
Database, bidder requirements, FHA-approved mortgagee assignment claim
requirements and contracts, servicing of the loans after sale and
before settlement, purchaser sale contracts, and post-sale
requirements. The proposed rule will define the following terms:
Aggregate Loan Database (ALD); Bidder Information Package (BIP); Bidder
Qualification Statement; Claim Date; Competitive Sale of Single Family
Loans; Confidentiality Agreement; Conveyance, Assignment and Assumption
Agreements (CAAs); Cut-off Date or Claim Submission Cut-off Date; Desk
Guide; Direct Sale of Single Family Loans; Home Equity Conversion
Mortgage (HECM); Interim Servicing Agreement (ISA); Interim Servicing
Period; Low-value; Nonprofit Organization; Participating Servicer (or
P-Servicer); Participating Servicer Agreement (PSA); Purchaser;
Qualified Participant; Sale Notice; Servicing Transfer Date; Single
Family Sale or the Program; Single Family Loan; and Vacant.
Section 291.603 Purpose and General Policy of Single Family Sales
This section sets forth the general purpose and policy for HUD's
Single Family Sale Program. The section makes clear that all Single
Family Sales will be made without recourse to HUD and without FHA
insurance. This section also clarifies that HUD has discretion on how
to package loans included in the sale as well as identify entities to
participate in the sale. More generally, this section clarifies that
the new subpart G governs all Single Family Sales unless otherwise
specified.
Section 291.605 Participating Servicers
This proposed section provides the requirements a Participating
Servicer must meet to participate in the Single Family Sale Program.
The Participating Servicer is the FHA-approved mortgagee contributing
eligible Single Family Loans into the Sale. The Participating Servicer
must identify the eligible Single Family Loans and assign them to HUD
in exchange for claim payment in accordance with the terms of the
Participating Servicer Agreement (PSA) with HUD. The Participating
Servicer will continue to service the assigned Single Family Loans for
an interim period after the Single Family Sale in accordance with the
terms of an Interim Servicing Agreement (ISA) with the Purchaser. The
Participating Servicer must execute the PSA and ISA to participate in
the Single Family Sale. The PSA will include, but is not limited to,
the processes for preparation of the mortgage loan list, submission of
due diligence materials, ordering valuations, preparing claim
submission files, submission of claim, transfer of documents to
Purchasers, sending letters to borrowers, preparing assignments and
endorsements, conducting interim servicing, and processing repurchases.
The Desk Guide is also a part of the PSA and is provided to the P-
Servicer by the Secretary for a Single Family Sale.
Proposed paragraph (b) provides that for each Single Family Sale in
which the Participating Servicer participates, the Participating
Servicer must identify mortgages that meet the eligibility criteria in
accordance with terms of the PSA, conduct all sale activities in
accordance with the PSA and ISA they executed, and comply with any Loan
Sale Notification requirements and Single Family Sale notice (the
``Sale Notice'') requirements. A Loan Sale Notification would describe
the sale process and describe Participating Servicer's obligations
before and after the sale. It would also provide contact information as
required by the Secretary, such as the Participating Servicer for
notification in the event the borrower wants to inquire about the loss
mitigation evaluation, or the loss mitigation option was not completed
in accordance with FHA requirements or HUD's National Servicing Center
for inquiry or complaint alleging non-compliance. The Loan Sale
Notification requirements will be announced to Participating Servicers
via notice, such as a Sale Notice or a Mortgagee Letter. The
Participating Servicer would be responsible for ensuring a Loan Sale
Notification is provided to each borrower and any other parties as
required by the Secretary, and the Loan Sale Notification complies with
all applicable law.
The sale-specific Sale Notice announces the sale of Single Family
Loans and will include the schedule of dates and any additional sale,
participant qualification and loan eligibility requirements including
requirements related to exhausting loss mitigation; representations;
post-sale servicing, outcome, and reporting requirements; and
repurchase criteria applicable to the Participating Servicers
activities for the individual Single Family Sale.
Paragraph (c) proposes the Participating Servicer comply with the
claims payments requirements in accordance with the PSA and claims will
be paid out in accordance with Sec. 203.413 for forward Single Family
Loans and Sec. 206.130 for any HECMs assigned in connection with a
Single Family Sale. The proposed paragraph (d) provides that the
Participating Servicer continue to service the purchased Single Family
Loans during the Interim Servicing Period in accordance with the ISA
that the Participating Servicer executed. Lastly, this section provides
in paragraph (e) that the Participating Servicer conduct the servicing
transfer for the Single Family Loans in accordance with both the
executed PSA and ISA and comply with the applicable state and federal
law requirements for servicing, including the applicable Consumer
Finance Protection Bureau (CFPB) requirements.
Section 291.607 Qualified Participants
This proposed section provides the requirements for being a
Qualified Participant in the Single Family Sale. This proposed section
requires individuals or entities to become a Qualified Participant
before they may bid or purchase Single Family Loans in a Single Family
Sale. Specifically, paragraph (a) proposes that an individual or entity
must sign a Confidentiality Agreement and complete and sign a Bidder
Qualification Statement to be considered a Qualified Participant. The
Bidder Qualification Statement is a statement of qualifications
prepared by and containing statements as prescribed by the Secretary
and executed by an individual or entity seeking to purchase Single
Family Loans through the Single Family Sale Program. The statement of
qualifications sets forth the basic qualifications required for
participation in any of the Single Family Sale Program activities,
which may include but are not limited to accessing due diligence files,
bidding on, and purchasing Single Family Loans. The Secretary will
specify which Bidder Qualification Statement form(s) are applicable to
a particular Single Family Sale and any additional sale specific
qualification criteria through notice. HUD will only provide access to
sensitive Single Family Sale materials to a Qualified Participant. In
addition, this proposed section provides the individual or entity must
execute the applicable Bidder Qualification Statement for the specific
Single Family
[[Page 57802]]
Sale they wish to bid on, as discussed in Sec. 291.609.
Proposed paragraph (b) provides the process for determining a
Qualified Participant. HUD will qualify any individual or entity
seeking to participate in a Single Family Sale if they have met the
qualification requirements and executed the applicable Bidder
Qualification statement for the Single Family Sale. Where permitted by
the Bidder Qualification Statement, the individual or entity may submit
information that may render its failure to certify certain statements
immaterial for purposes of qualifying for the Single Family Sale. The
Secretary, in his or her sole discretion, may accept such information
and determine the failure to certify as immaterial for qualifying the
entity or individual due to the entity or individual's minor or
technical reason preventing certification or experience that differs
from the certification standard, but that HUD determines to be
equivalent to the standard. HUD notes the Sale Notice may have
additional sale-specific qualification requirements the individual or
entity must also meet, as more fully described below.
Section 291.609 Bidding Process
This proposed section provides the process for Qualified
Participants to respond to a Sale Notice HUD publishes, and any
additional sale requirements as defined in the BIP. Paragraph (a)
proposes for each Single Family Sale, HUD will publish the PSA, which
includes the Desk Guide, and the schedule of dates and any sale-
specific loan eligibility, representations, and repurchase criteria
published by the Secretary in the Sale Notice. HUD will also publish
the ISA (if applicable), CAA, and Sale Notices, on HUD's public
website.
Paragraph (b) proposes all Qualified Participants that intend to
bid must do so in accordance with the Sale Notice and the BIP, which
provides details for each sale. Paragraph (b) also provides that when a
Qualified Participant submits a bid, it will be considered an offer and
acceptance of the terms and conditions set forth in the BIP. Paragraph
(b) also notes that along with the bid, the Qualified Participant must
also execute a copy of the CAA and ISA, as applicable.
Paragraph (c) proposes a Qualified Participant may use a broker or
agent. In such case, the bid must be in the name of the Qualified
Participant and signed by the broker or agent as the attorney-in-fact
for the Qualified Participant, and the bid must include a power of
attorney satisfactory to HUD as to form and content. Paragraph (d)
would require the Qualified Participant also submit to HUD an earnest
money deposit in the amount set forth in the Sale Notice in paragraph
(a). The earnest money deposit is nonrefundable to the Qualified
Participant whose bid is selected for award and will be credited toward
the purchase price. In the case the Qualified Participant's bid is not
selected, their earnest money will be returned.
Paragraph (e) proposes a Qualified Participant may withdraw a
submitted bid in accordance with the instructions in the BIP for a
sale, but a bid may not be withdrawn once the bidding has closed.
Paragraph (f) proposes that HUD maintains the right to terminate a
Single Family Sale in whole or in part at any time before the bid date.
In addition, paragraph (g) sets forth the option for HUD to withdraw
Single Family Loans from a Single Family Sale prior to the settlement
date or after the bid date in accordance with the BIP and CAA. Lastly,
paragraph (h) would provide the option for HUD to reject bids when the
bid does not conform with the instructions in the BIP or when HUD
determines such action would be in its best interests because it would
not further HUD's fiduciary responsibility to the MMIF or any stated
mission objectives in the Sale Notice. Paragraph (h) would also provide
HUD issue a conditional rejection for bids that are nonconforming, to
include but not limited to, a missing answer, item, or component which
would render the bid incomplete. At HUD's discretion, the bidder would
have the opportunity to amend the nonconforming bid and be considered
for acceptance upon fulfillment of HUD's requests.
Section 291.611 Post-Bid Process and HUD's Execution of the CAA
This proposed selection discusses the post-bid selection process
and proposes HUD would notify the Qualified Participants regarding any
adjustments to bids in accordance with the BIP. HUD will select bids
for award and provide notice of award in accordance with the BIP. The
proposed rule provides that post-selection, HUD will complete the
execution of the CAA.
Section 291.613 Settlement Requirements
This proposed section sets forth the settlement requirements
applicable to a Single Family Sale. Specifically, paragraph (a) would
provide that the Purchaser must pay to HUD the settlement payment,
consisting of the balance of the amount due on the bid price, as
adjusted in accordance with the BIP and CAA. In addition, proposed
paragraph (b) would provide that when the Purchaser delivers the
settlement payment, HUD will execute and deliver to the Purchaser a
settlement statement and an updated loan schedule for the CAA to
document the Single Family Loans sold to the Purchaser in the Single
Family Sale. Proposed paragraph (c) provides for HUD to grant a
temporary Limited Power of Attorney to the Purchaser to facilitate
endorsement and assignment of the Single Family Loans to the Purchaser.
Proposed paragraph (d) permits the Purchaser to endorse and assign
Single Family Loans from HUD to its special purpose entity acquisition
vehicle that meets CAA requirements.
Section 291.615 Purchaser Servicing Requirements
This proposed section provides the requirements for Purchasers. The
rule proposes to require Purchasers to adhere to and ensure their
servicer, or any subsequent servicer adheres to, the servicing
requirements as specified in this section and in the CAA for each
Single Family Sale. Paragraph (a) proposes to include the existing
requirement that the Purchaser and its servicer comply with the terms
of the CAA. The CAA terms will include, but are not limited to,
servicing, resale, post-sale outcome, and reporting requirements for
the purchased loans. In addition, the Sale Notice published in
accordance with Sec. 291.609(a) may impose additional post-sale loss
mitigation and outcome requirements, such as alternatives to
foreclosure that further FHA's mission of meeting the housing needs of
low- to moderate-income homeowners, a first look requirement for sales
of real estate owned properties to provide an exclusive listing period
for owner occupant, nonprofit organization, government, and other
prospective buyers as permitted by HUD, that will be incorporated into
the CAA. The CAA will incorporate by reference the Sale Notice for each
Single Family Sale, enabling HUD to establish and adjust post-sale
requirements meeting HUD's mission based on economic and other market
conditions.
Paragraph (b) would require the Purchaser report on post-sale
servicing actions and outcomes for each purchased loan. Paragraph (b)
also provides that HUD will prescribe the reporting time frame after
the settlement of the sale in the CAA, which generally continues for a
four-year period after the settlement date. HUD will periodically
publish reports to the public on loan
[[Page 57803]]
and property outcomes and will include a breakdown of outcomes in
different geographies. Paragraph (c) proposes HUD may pursue
appropriate remedies for a Purchaser's failure to comply with Single
Family Sale requirements, including obligations set forth under the
CAA. Such remedies may include the inability to participate in the
Program for one or more Single Family Sales or for a set-period of
time, see Sec. 291.621.
Section 291.617 General Policy--Direct Sales of Single Family Loans
As discussed in Sec. 291.603, HUD has the discretion regarding how
to package loans included in a Single Family Sale and may pursue a
Direct Sale of Single Family Loans to individuals or entities that the
Secretary determines to be qualified, in lieu of a bidding process. The
Direct Sale of Single Family Loans will follow the requirements in
subpart G, excluding 24 CFR 291.609 and 291.611. HUD in its Sale Notice
for the Direct Sale of Single Family Loans will set forth specific
eligibility requirements and post-sale servicing, outcome, and
reporting requirements.
Section 291.619 Direct Sale of Single Family Loans Process
This section sets forth the second method for which HUD could
decide to conduct a Single Family Sale through the Direct Sale of
Single Family Loan process. Under paragraph (a), HUD proposes that HUD
may issue a Sale Notice seeking participation in a Direct Sale of
Single Family Loans. The Sale Notice would include any qualification
requirements not already detailed in the Qualification Statement, such
as targeting Nonprofit Organizations in particular geographic areas or
with experience acquiring and rehabilitating Vacant properties or Low-
value mortgages, and other sale requirements, including loan
eligibility criteria, post-sale servicing requirements, post-sale
outcomes to achieve mission objectives, such as promoting affordable
housing, and reporting requirements.
Paragraph (b) provides that in all stages of the Direct Sale of
Single Family Loans process, HUD may determine whether to continue
proceeding with the mortgage loan sale. HUD's determination will be
based on whether the Direct Sale of Single Family Loans is feasible and
in HUD's interest as it relates to HUD's fiduciary responsibility to
the MMIF and any stated mission objectives.
Paragraph (c) provides that in response to the Sale Notice, an
individual or entity that meets the requirements for the Direct Sale of
Single Family Loans and is interested in purchasing a Single Family
Loan, must submit a letter of interest to HUD that includes, at a
minimum: a description of the participant and statement about how it
would be able to satisfy the qualification requirements and other sale
requirements including post-sale outcomes to achieve mission
objectives, if any; the geographic area of interest where the
individual or entity wishes to purchase the loans; the individual or
entity's post-sale goals and how this purchase would assist in
achieving them through post-sale outcomes; the timeframe for the
purchase; the number of loans or, alternatively, the gross sale amount;
and the organizational documents for the entity.
Paragraph (d) proposes a Direct Sale of Single Family Loans process
for HUD to determine whether to proceed with the Direct Sale of Single
Family Loans and provides that HUD would make this determination in
writing. In some situations, HUD may request additional information,
which would include supplemental organizational documents and program
marketing material from the individual or entity, as needed for its
determination.
Paragraph (e) proposes the next step in finalizing a Direct Sale of
Single Family Loans. Specifically, paragraph (e) would provide that the
individual or entity must submit to HUD, within 30 business days, a
business plan proposal that details its ability to meet any stated
mission objectives from the Sale Notice, along with its goals and how
they will be achieved with post-sale outcomes. Upon receipt and review
of business plan proposal, HUD would either reject the business plan
proposal, issue a conditional rejection that would provide the
opportunity for a proposal to be amended and resubmitted, or approve
the business plan proposal. If HUD approves the individual or entity's
submission, the proposed rule provides that HUD and the submitter will
execute a Confidentiality Agreement and Bidder Qualification Statement.
HUD will execute a PSA with each Participating Servicer submitting
Single Family Loans. After execution of such agreements, the parties
will review available Single Family Loans from Participating
Servicer(s) selected based on HUD's eligibility criteria for the Direct
Sale of Single Family Loans. HUD and the individual or entity will
agree on the Single Family Loan List that makes up the Direct Sale of
Single Family Loans.
Paragraph (f) proposes that after agreement on the Single Family
Loan List, HUD will complete a valuation of the Single Family Loans and
issue a final price determination in accordance with Office of
Management and Budget (OMB) Circular A-11 (``Preparation, Submission,
and Execution of the Budget'') and a CAA with an estimated settlement
date to the individual or entity for review and approval. The paragraph
also provides that once the final price is approved by the individual
or entity, HUD and the entity will come up with a final settlement
date. Lastly, paragraph (g) proposes that parties will execute the PSA,
and the remaining settlement and transfer requirements would be
conducted consistent with Sec. 291.613.
Section 291.621 Disqualifications
Paragraph (a) proposes HUD has the authority to deny or revoke
approval of any party from participating in the Single Family Sale if
it determines there is any false, misleading, or fraudulent information
on any certification or required document.
Paragraph (b) proposes that an individual or entity is not
qualified to participate in a Single Family Sale if, at or around the
time of the Single Family Sale or any time thereafter, that individual
or entity is debarred or suspended from doing business with HUD.
Paragraph (c) proposes HUD may disqualify Purchasers that made any
misrepresentation in the qualification process or failed to meet their
contractual obligations under CAAs, including meeting any post-sale
requirements, for previous Single Family Sales.
IV. Request for Public Comment
HUD seeks public feedback on all elements of this proposed rule. In
particular, HUD seeks information and recommendations on the following
issues:
1. HUD seeks information and recommendations on whether there are
any additional actions HUD can take to provide greater bidding
opportunities for nonprofit organizations and governmental entities.
Please provide the rationale for your opinion, as well as available
examples and data which support it.
2. Should a Competitive Sale of Single Family Loans disallow Low-
value Mortgages and properties that are Vacant? Please provide details
on the impacts and examples (including data).
3. A first look program has not been incorporated into the forward
loan sale program (SFLS). It has only been in effect for reverse loan
sales (HVLS). Should all Single Family Sales require a first look
program for loans that convert to real estate owned property? Please
provide the rationale for your
[[Page 57804]]
opinion, as well as available examples and data which support it.
4. Should Single Family Sales post-sale servicing requirements
include that a Purchaser offer loss mitigation options that are as or
more generous than the FHA loss mitigation options for insured mortgage
loans? If so, should all terms of a Purchaser's loss mitigation option
meet or be more generous than what FHA provides, or should there be a
different standard for evaluating compliance with this requirement?
Should HUD require a specific and separate waterfall of loss mitigation
options for all Single Family Sales? What loss mitigation options have
been successful for defaulted borrowers whose loans were sold through
previous HUD single family mortgage loan sales? Please provide the
rationale for your opinion, as well as available examples and data
which support it.
5. Currently, in the sale of Home Equity Conversion Mortgages (HVLS
loan sales), HUD allows nonprofit organizations and governmental
entities to qualify for priority bidding status that allows them to be
awarded up to 50% of loans in the sale. Should HUD allow nonprofit
organizations and governmental entities to qualify for a priority
bidding status in Single Family Sales and if so, what percentage of the
loans should be awarded to these bidders? Please provide the rationale
for your opinion, as well as available examples and data which support
it.
6. Has HUD proposed a workable and efficient process for Direct
Sales of Single Family Loans? Please provide the rationale for your
opinion, as well as available examples and data which support it.
7. Should all Single Family Sales of forward mortgage loans require
a P-Servicer to send a Loan Sale Notifications to borrowers? What
information should HUD include in this notification? How should the P-
servicer or HUD respond if a borrower believes the loss mitigation
evaluation or option was not completed in accordance with HUD
requirements? Please provide the rationale for your opinion, as well as
available examples and data which support it.
8. What information should HUD include in its periodic reports on
Single Family Sales loan and property outcomes? Please provide the
rationale for your opinion, as well as available examples and data
which support it.
9. The eligibility criteria of forward mortgage loans is not
defined in the proposed rule. This was done to allow the Secretary
flexibility in determining the sale population based on mission and
economic needs. Should the HUD eligibility criteria for a Single Family
Sale of forward mortgage loans include satisfaction of HUD's loss
mitigation requirements for insured mortgage loans? How can P-servicers
demonstrate compliance with HUD's loss mitigation requirements? Please
provide the rationale for your opinion, as well as available examples
and data which support it.
10. Subject to appropriations, should HUD consider offering
favorable sale terms, which will be presented in the Notice of Sale
(e.g., a lower reserve price), to governmental or nonprofit entities?
Please provide the rationale for your opinion, as well as available
examples and data which support it.
V. Findings and Certifications
Regulatory Review--Executive Orders 12866, 13563, and 14094
Pursuant to Executive Order 12866 (Regulatory Planning and Review),
a determination must be made whether a regulatory action is
significant, and therefore, subject to review by OMB in accordance with
the requirements of the order. Executive Order 13563 (Improving
Regulations and Regulatory Review) directs executive agencies to
analyze regulations that are ``outmoded, ineffective, insufficient, or
excessively burdensome, and to modify, streamline, expand, or repeal
them in accordance with what has been learned.'' Executive Order 13563
also directs, where relevant, feasible, and consistent with regulatory
objectives, and to the extent permitted by law, agencies to identify
and consider regulatory approaches that reduce burdens and maintain
flexibility and freedom of choice for the public. Executive Order
14094, entitled ``Modernizing Regulatory Review'' (hereinafter referred
to as the ``Modernizing E.O.''), amends section 3(f) of Executive Order
12866 (Regulatory Planning and Review), among other things.
This proposed rule was determined to be a ``significant regulatory
action'' as defined in section 3(f) of the Executive order, but not
significant specifically under section 3(f)(1) of Executive Order
12866. The proposed rule would provide flexibility for the management
of defaulted loans, more efficiently accept assignment, and dispose of
assigned mortgages through loan sales and reduce the overall financial
exposure of the MMIF.
The docket file is available for public inspection in the
Regulations Division, Office of General Counsel, Room 10276, 451 7th
Street SW, Washington, DC 20410-0500. Due to security measures at the
HUD Headquarters building, please schedule an appointment to review the
docket file by calling the Regulations Division at 202-402-3055 (this
is not a toll-free number). HUD welcomes and is prepared to receive
calls from individuals who are deaf or hard of hearing, as well as
individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally
requires an agency to conduct a regulatory flexibility analysis of any
rule subject to notice and comment rulemaking requirements, unless the
agency certifies the rule will not have a significant economic impact
on a substantial number of small entities. Small entities include small
businesses, small not-for-profit organizations, and small governmental
jurisdictions.
As discussed in this preamble, this proposed rule would make the
Single Family Sales permanent and make changes to HUD's regulations to
implement parts 203 and 206, respectively referring to Single Family
Forward loans and HECM, and part 291 to efficiently manage HUD's
defaulted single family assets and minimize losses to the MMIF. While
small entities such as mortgage service providers may be affected by
this Program, these entities would not incur a significant economic
impact because the Program would provide servicers with the chance to
assign burdensome and problematic loans to HUD. Therefore, the
undersigned certifies this proposed rule will not have a significant
economic impact on a substantial number of small entities.
Notwithstanding HUD's determination this proposed rule will not
have a significant economic effect on a substantial number of small
entities, HUD specifically invites comments regarding any less
burdensome alternatives to this proposed rule that will meet HUD's
objectives as described in this preamble.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (PRA) (44
U.S.C. 3501-3520), an agency may not conduct or sponsor, and a person
is not required to respond to a collection of information, unless the
collection displays a currently valid Office of Management and Budget
(OMB) control number.
[[Page 57805]]
The following documents have existing OMB approved burden that will
not be changed by this proposed rule: FHA Single Family Loan Sales
Qualification Statement (OMB Control Number 2502-0576), which includes
approval for FHA Single Family Loan Sales Qualification Statement
Addendum for Nonprofit and Government Pools and Sub-pools (form no.
HUD-9612) and SF application for insurance benefits (OMB Control Number
2502-0429). HUD will seek new PRA approval for the following burden
requirements as part of this proposed rule: Confidentiality Agreement;
Participating Servicer Agreement (PSA) and its exhibits; Conveyance,
Assignment and Assumption Agreement (CAA) and its exhibits including
the Post-sale report; Certification of compliance; and the Final
settlement statement, as well as the Loan Sale Notification, and Single
Family application for insurance benefits.
---------------------------------------------------------------------------
\9\ The Participating Servicer Agreement contains exhibits of
the following: Instructions Regarding Participating Servicer's
Preparation of Assignments and Lost Note Affidavits and Related
Forms, Desk Guide, Interim Servicing Agreement (ISA), Delivery
Report, SFS Claim Submission Report, SFS Claim Submission Report-
Self Certification Form, Maximum Missed Payments and Minimum Loan to
Value Ration, and HUD Breach Notice Rebuttal Guidelines and
Template. The chart above contains the combined burden hours for
Participating Servicer Agreement (PSA) inclusive of each of these
exhibits. The figures presented are based on the estimate of 5000
forward mortgages sold annually.
\10\ The Conveyance Assignment Assumption Agreement contains
exhibits of the following: Form of Assignment of Mortgage, Post Sale
Reporting Requirements, Self-Certification Form Servicer Eligibility
Provision, Self-Certification Form, Mortgage Loan Schedule
Information, Breach and Repurchase Guidelines and Template, Form of
Settlement Statement (Settlement Date), Interim Servicing Agreement,
Form of Consent to Assignment and Assignment and Assumption
Agreement, Form of Limited Power of Attorney, Pricing Exhibit, Form
of Mortgage Loan Schedule and Instructions (Included in Exhibit C)
and, if applicable, Supplemental Servicer-Related Rider with
exhibits. The chart above contains the combined burden hours for the
Conveyance Assignment and Assumption Agreement (CAA) inclusive of
each of these exhibits. The figures presented are based on the
estimate of 5000 forward mortgage loans and 2000 HECM mortgage loans
sold annually.
\11\ These forms are contained in the OMB Control Number: 2502-
0576 (Forms HUD-9611 & HUD-9612) and OMB Control Number: 2502-0429
(Form HUD-27011) and the chart above.
---------------------------------------------------------------------------
The overall reporting and recordkeeping burden are estimated as
follows:
----------------------------------------------------------------------------------------------------------------
Total
Description of information Number of Responses per year annual Hours per Total
collection responses responses response hours
----------------------------------------------------------------------------------------------------------------
FHA Single Family Loan Sales 90 Bi-annual (2)............ 180 0.25 45.00
Qualification Statement and
Addendum for Nonprofit and
Government Pools and Sub-pools
(HUD-9611 & HUD-9612) *.
Confidentiality Agreement........ 90 Bi-annual (2)............ 180 .25 45.00
Participating Servicer Agreement 20 Bi-annual (2)............ 40 1.60 64.00
(PSA) \9\.
Conveyance Assignment Assumption 90 Bi-annual (2)............ 180 77.25 13,905.00
Agreement (CAA) \10\.
Loan Sale Notification........... 2,500 Bi-annual (2)............ 5,000 0.25 1,250.00
SF application for insurance 500 Bi-annual (2)............ 1,000 1.33 1330.00
benefits (HUD-27011) \11\ **.
------------------------------------------------------------------------------
Total........................ 3,290 ......................... 6,580 80.93 16,639.00
----------------------------------------------------------------------------------------------------------------
* These forms are contained in the OMB Control Number: 2502-0576 (Forms HUD-9611 & HUD-9612) and the chart above
indicates there will be no increase in responses or burdens associated with these forms because of this
proposed rulemaking.
** This form contained in the OMB Control Number: 2502-0429 (Form HUD-27011) and the chart above indicates only
the additional responses or burdens associated with the form because of this proposed rulemaking.
In accordance with 5 CFR 1320.8(d)(1), HUD is soliciting comments
from members of the public and affected agencies concerning the
information collection requirements in the proposed rule regarding:
(1) Whether the proposed collection of information is necessary for
the proper performance of the functions of the agency, including
whether the information will have practical utility;
(2) The accuracy of the agency's estimate of the burden of the
proposed collection of information;
(3) Whether the proposed collection of information enhances the
quality, utility, and clarity of the information to be collected; and
(4) Whether the proposed information collection minimizes the
burden of the collection of information on those who are to respond,
including through the use of appropriate automated collection
techniques or other forms of information technology (e.g., permitting
electronic submission of responses).
Interested persons are invited to submit comments regarding the
information collection requirements in this proposed rule. Under the
provisions of 5 CFR part 1320, OMB is required to make a decision
concerning this collection of information between 30 and 60 days after
the publication date. Therefore, a comment on the information
collection requirements is best assured of having its full effect if
OMB receives the comment within 30 days of the publication. This time
frame does not affect the deadline for comments to the agency on the
proposed rule, however. Comments must refer to the proposed rule by
name and docket number (FR-6051-P-02) and must be sent to:
HUD Desk Officer, Office of Management and Budget, New Executive
Office Building, Washington, DC 20503, Fax number: 202-395-6947, and
Colette Pollard, HUD Reports Liaison Officer, Department of Housing
and Urban Development, 451 7th Street SW, Room 2204, Washington, DC
20410.
Interested persons may submit comments regarding the information
collection requirements electronically through the Federal Rulemaking
Portal at https://www.regulations.gov. HUD strongly encourages
commenters to submit comments electronically. Electronic submission of
comments allows the commenter maximum time to prepare and submit a
comment, ensures timely receipt by HUD, and enables HUD to make them
immediately available to the public. Comments submitted electronically
through the https://www.regulations.gov website can be viewed by other
commenters and interested members of the public. Commenters should
follow the instructions provided on this site to submit comments
electronically.
Forms approved by OMB will be available on regsinfo.gov. You can
use the control number to access the document (click on information
collection review and then hit search
[[Page 57806]]
using the control number). Additionally, HUD will maintain the approved
forms on the collection point, HUD Clips Forms Resource, currently
available through https://www.hud.gov/program_offices/administration/hudclips/forms, or at a successor resource designated by HUD.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4; approved March 22, 1995) (UMRA) establishes requirements for Federal
agencies to assess the effects of their regulatory actions on State,
local, and tribal governments, and on the private sector. This proposed
rule does not impose any Federal mandates on any State, local, or
tribal government, or on the private sector, within the meaning of the
UMRA.
Environmental Impact
This proposed rule does not direct, provide for assistance or loan
and mortgage insurance for, or otherwise govern or regulate, real
property acquisition, disposition, leasing, rehabilitation, alteration,
demolition, or new construction, or establish, revise or provide for
standards for construction or construction materials, manufactured
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this
proposed rule is categorically excluded from environmental review under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321, et
seq.).
List of Subjects
24 CFR Part 203
Hawaiian natives, Home improvement, Indians--lands, Loan programs--
housing and community development, Mortgage insurance, Reporting and
recordkeeping requirements, Solar energy.
24 CFR Part 206
Aged, Condominiums, Loan programs--housing and community
development, Mortgage insurance, Reporting and recordkeeping
requirements.
24 CFR Part 291
Community facilities, Conflicts of interest, Homeless, Lead
poisoning, Low- and moderate-income housing, Mortgages, Reporting and
recordkeeping requirements, Surplus government property.
Accordingly, for the reasons described in the preamble, HUD
proposes to amend 24 CFR parts 203, 206, and 291 as follows:
PART 203--SINGLE FAMILY MORTGAGE INSURANCE
0
1. The authority citation for part 203 continues to read as follows:
Authority: 12 U.S.C. 1707, 1709, 1710, 1715b, 1715z-16, 1715u,
and 1715z-21; 15 U.S.C. 1639c; 42 U.S.C. 3535(d).
0
2. Add Sec. 203.413 to read as follows:
Sec. 203.413 Amount of payment--Single Family Sale assignments.
(a) Time of payment. Upon an assignment of a mortgage insured under
this part that is acceptable to the Commissioner, made pursuant to a
Single Family Sale and in accordance with Sec. 291.609 or Sec.
291.619 of this chapter, the Commissioner shall pay to the mortgagee
the unpaid principal balance of the loan at the time of assignment and
an amount calculated in accordance with the Participating Servicer
Agreement (PSA), as defined in Sec. 291.601 of this chapter.
(b) Acceptability criteria. For assignment, the mortgagee must
determine and certify the mortgage satisfies the Commissioner's
acceptability criteria for the Single Family Sale. Acceptability
criteria includes satisfaction of the Single Family Sale loss
mitigation eligibility requirements and exclusion of low-value
mortgages secured by vacant properties.
(c) Reduction in claim. The mortgagee's claim for insurance will be
reduced for failure to take the required actions within the specified
schedule of dates for the Single Family Sale, as specified in the PSA.
(d) Curtailment of Debenture Interest. HUD will curtail Debenture
Interest at the thirtieth (30th) day following the earliest anticipated
claim submission date, as identified on the schedule of dates in the
PSA, if:
(1) The mortgagee's claim for insurance is not submitted to HUD; or
(2) The claim for insurance is in a suspended status.
(e) Debenture Interest. For purposes of this section, Debenture
Interest means interest at the debenture rate as computed by HUD in
accordance with its rules and requirements for such calculations, on
the unpaid principal balance as of the claim payment date, plus the
approved reimbursable expenses identified in the PSA, minus any amount
of such interest or expenses that would have been curtailed or for
which the Participating Servicer would have been denied reimbursement
pursuant to HUD's requirements for servicing defaulted notes and
processing claims, including Sec. 203.402(k)(1)(i) and (ii), had the
Participating Servicer conveyed title to the property securing the
Single Family Loan to the Secretary rather than assigned the Single
Family Loan in connection with an insurance claim.
(f) Rejection of claim. HUD may reject the mortgagee's claim for
insurance and exclude the related mortgage from settlement if within
the thirty (30)-day period prior to the claim's submission cut-off
date, as identified on the schedule of dates in the PSA:
(1) Any insurance claim is not submitted; or
(2) Any suspended insurance claim is not resolved.
PART 206--HOME EQUITY CONVERSION MORTGAGE INSURANCE
0
3. The authority citation for part 206 continues to read as follows:
Authority: 12 U.S.C. 1715b, 1715z-20; 42 U.S.C. 3535(d).
0
4. Add Sec. 206.130, under the undesignated center heading ``Claim
Procedure,'' to read as follows:
Sec. 206.130 Amount of payment--HECM Single Family Sale assignments.
(a) Time of payment. Upon an assignment of a mortgage insured under
this part that is acceptable to the Commissioner, made pursuant to a
HECM Single Family Sale and in accordance with Sec. 291.609 or Sec.
291.619 of this chapter, the Commissioner shall pay to the mortgagee
the unpaid principal balance of the loan at the time of assignment and
an amount calculated in accordance with the Participating Servicer
Agreement (PSA), as defined in Sec. 291.601 of this chapter.
(b) Acceptability criteria. For assignment, the mortgagee must
determine and certify the mortgage satisfies the Commissioner's
acceptability criteria for the Single Family Sale.
(c) Reduction in claim. The mortgagee's claim for insurance will be
reduced for failure to take the required actions within the specified
schedule of dates for the Single Family Sale, as specified in the PSA.
(d) Curtailment of debenture interest. HUD will curtail debenture
interest at the thirtieth (30th) day following the earliest anticipated
claim submission date, as identified on the schedule of dates in the
PSA, if:
(1) The mortgagee's claim for insurance is not submitted to HUD; or
(2) The claim for insurance is in a suspended status.
(e) Debenture Interest. For purposes of this section, Debenture
Interest means interest at the debenture rate as
[[Page 57807]]
computed by HUD in accordance with its rules and requirements for such
calculations, on the unpaid principal balance as of the claim payment
date, plus the approved reimbursable expenses identified in the PSA,
minus any amount of such interest or expenses that would have been
curtailed or for which the Participating Servicer would have been
denied reimbursement pursuant to HUD's requirements for servicing due
and payable notes and processing claims, including Sec.
206.129(d)(3)(x), had the Participating Servicer foreclosed or the
borrower sold the property in connection with an insurance claim.
(f) Rejection of the claim. HUD may reject the mortgagee's claim
for insurance and exclude the related mortgage from settlement if,
within the thirty (30)-day period prior to the claim's submission cut-
off date, as identified on the schedule of dates in the PSA:
(1) An insurance claim is not submitted; or
(2) Any suspended insurance claim is not yet resolved.
PART 291--DISPOSITION OF HUD-ACQUIRED AND -OWNED SINGLE FAMILY
PROPERTY
0
5. The authority citation for part 291 continues to read as follows:
Authority: 12 U.S.C. 1701 et seq.; 42 U.S.C. 1441, 1441a,
1551a, and 3535(d).
Subpart D--[Removed and Reserved]
0
6. Remove and reserve subpart D, consisting of Sec. Sec. 291.301
through 291.307.
0
7. Add subpart G, consisting of Sec. Sec. 291.601 through 291.621, to
read as follows:
Subpart G--Sale of HUD-Held Single Family Mortgage Loans
Sec.
291.601 Definitions.
291.603 Purpose, scope, and applicability.
291.605 Participating Servicers.
291.607 Qualified participants.
291.609 Bidding process.
291.611 Post-bid process and HUD's execution of the CAA.
291.613 Settlement requirements.
291.615 Purchaser servicing requirements.
291.617 General policy--Direct Sales of Single Family Loans.
291.619 Direct Sale of Single Family Loans process.
291.621 Disqualifications.
Sec. 291.601 Definitions.
For purposes of this subpart, the following definitions apply:
Aggregate Loan Database (ALD) means the electronic data file
containing Single Family Loan information available for Qualified
Participants to review before a Single Family Sale.
Bidder Information Package (BIP) means the documents prepared for
participants in a Single Family Sale, which may include, but are not
limited to, the following: an executive summary of the Programs; the
Single Family Sale post-sale servicing and reporting requirements
published by HUD; due diligence information and reports; Single Family
Loan information; the Conveyance, Assignment and Assumption Agreement
(CAA); bidding and settlement information; and necessary information
and requirements as determined by the Secretary.
Bidder Qualification Statement means HUD Forms 9611 and 9612, or
any form approved for similar purpose in the future as prescribed by
the Secretary. (OMB number 2502-0576)
Claim Date means, with respect to each Single Family Loan, the date
on which the Single Family Sale assignment claim is paid by HUD to the
P-Servicer.
Competitive Sale of Single Family Loans means a sale of an
individual or group of Single Family Loans to Qualified Participants
through a bid process prescribed by the Secretary in competition with
other Qualified Participants in accordance with Sec. 291.609.
Confidentiality Agreement means a nondisclosure agreement under
which the individual or entity seeking to participate in Single Family
Sales agrees that Single Family Loan data and documentation shared with
the individual or entity as due diligence will remain confidential in
accordance with the terms of the agreement as determined by the
Secretary.
Conveyance, Assignment and Assumption Agreement (CAA) means the
contract between HUD and a Purchaser, along with all applicable
exhibits and riders, that governs the terms of the Single Family Sale
as prescribed by the Secretary. The CAA will include any sale-specific
post-sale servicing and outcome requirements, representations,
repurchase requirements, schedule of dates, and reporting requirements
published by the Secretary for the Single Family Sale through a Sale
Notice.
Cut-off date or claim submission cut-off date means the last date
specified by the Secretary on which the P-Servicer is permitted to
submit to HUD a Single Family Sale insurance claim for payment under 24
CFR 203.413 and 206.130.
Desk Guide means the technical manual included in the PSA detailing
the P-Servicer's steps for submitting Single Family Loans related to a
Single Family Sale, including but not limited to the process for
identifying eligible Single Family Loans, uploading due diligence
files, and submitting insurance claims.
Direct Sale of Single Family Loans means a sale of an individual or
group of Single Family Loans to a Qualified Participant through the
process described in Sec. 291.619.
Home Equity Conversion Mortgage (HECM) means reverse mortgages
insured in accordance with 24 CFR part 206 under the FHA Home Equity
Conversion Mortgage insurance program.
Interim Servicing Agreement (ISA) means the agreement between a
Purchaser and P-Servicer that governs the servicing and administration
of the purchased loans, including but not limited to transfer of
mortgage information and loss mitigation evaluations, during the
Interim Servicing Period in accordance with the terms prescribed by the
Secretary.
Interim Servicing Period means the period commencing with Claim
Date and ending with the Servicing Transfer Date.
Low-value means, in reference to a Mortgage, the value minimum
stated in the Participating Servicer Agreement (PSA).
Nonprofit organization means an entity that is tax-exempt under
section 501(c)(3) of the Internal Revenue Code of 1954 (26 U.S.C.A.
501(c)(3)) and meets the qualification requirements prescribed by the
Secretary for participation in a Single Family Sale.
Participating Servicer (P-Servicer) means a mortgagee that complies
with Sec. 291.605 and submits Single Family Loans for a Single Family
Sale.
Participating Servicer Agreement (PSA) means the agreement between
HUD and a P-Servicer that governs the P-Servicers submission of Single
Family Loans to be sold in a Single Family Sale on terms as prescribed
by the Secretary.
Purchaser means a Qualified Participant to which HUD has awarded
one or more Single Family Loans through a Single Family Sale, as of the
date of notification of the award.
Qualified Participant means an individual or entity that satisfies
the requirements in Sec. 291.607 for participation in Single Family
Sales.
Sale Notice means an announcement published by HUD for an upcoming
Single Family Sale and includes any stated mission objectives and
additional sale, participant qualification, and loan eligibility
requirements; representations; post-sale servicing, outcomes, and
reporting requirements; and repurchase
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requirements for inclusion in the Qualification Statement, PSA, ISA,
and CAA as applicable.
Servicing Transfer Date means, with respect to any Single Family
Loan, the date on which the actual servicing duties for such Single
Family Loan has been or will be transferred from the P-Servicer to the
Purchaser's servicer. The latest Servicing Transfer Date will be set
forth in a schedule of dates prescribed by the Secretary and included
in the PSA, ISA, and CAA.
Single Family Loan means any HUD-selected eligible forward mortgage
loan insured under section 203 of the National Housing Act (12 U.S.C.
1709) that has or will be assigned to HUD and any HUD-selected eligible
HECM insured under section 255 of the National Housing Act (12 U.S.C.
1715z-20) that has or will be assigned to HUD, or any other eligible
single family mortgage loans owned by the Secretary that will be sold
in a Single Family Sale.
Single Family Sale means a Competitive Sale of Single Family Loans
or Direct Sale of Single Family Loans conducted by HUD in accordance
with this subpart.
Vacant means a mortgaged property is determined to be vacant or
abandoned in accordance with the requirements of 24 CFR part 203 and
FHA policy.
Sec. 291.603 Purpose, scope, and applicability.
The sale of Single Family Loans is at the discretion of the
Secretary. All Single Family Loans will be sold without recourse to HUD
and without FHA insurance. HUD may sell individual Single Family Loans
or groups of Single Family Loans to Qualified Participants as a
Competitive Sale of Single Family Loans, Sec. 291.609, or as a Direct
Sale of Single Family Loans, Sec. 291.619. Nothing in this section
shall be construed to prevent HUD from grouping Single Family Loans
with other types of HUD assets for sale, including grouping any
associated HUD-held mortgages subordinate to the respective assets. The
procedures set out in this subpart, including any cross-referenced
regulations, documentation, and published notices detailed in this
subpart, govern the Single Family Sales.
Sec. 291.605 Participating Servicers.
(a) Participation. To participate in a Single Family Sale, a
Participating Servicer must:
(1) Be an FHA-approved Mortgagee contributing eligible Single
Family Loans and assigning loans to HUD; and
(2) Execute a PSA and agree to execute an ISA, as needed.
(b) Sale. For each Single Family Sale, the Participating Servicer
must:
(1) Identify mortgages that meet the eligibility criteria in
accordance with terms of the PSA;
(2) Conduct all sale activities in accordance with the PSA and ISA;
(3) Comply with any Single Family Sale and Loan Sale Notification
requirements as prescribed by the Secretary through notice; and
(4) Comply with the terms of the Sale Notice.
(5) Ensure the Loan Sale Notification is provided to each borrower
and any other parties as required by the Secretary and the Loan Sale
Notification complies with all applicable law. Loan Sale Notification
requirements will be announced to the Participating Servicer through
notice.
(c) Claim payment requirements. The Participating Servicer must
comply with the claim payment process and requirements for Single
Family Sales in accordance with the PSA and processes outlined in 24
CFR 203.413 and 206.130, as applicable.
(d) Interim servicing. During the Interim Servicing Period, the
Participating Servicer must service the purchased Single Family Loans
on behalf of the Purchaser in accordance with the ISA.
(e) Transfer documents and servicing. The Participating Servicer
must conduct the servicing transfer of the Single Family Loans in
accordance with the requirements of the PSA and ISA and must service
the purchased Single Family Loans in accordance with all applicable
state and Federal law requirements, including applicable Consumer
Finance Protection Bureau (CFPB) requirements.
Sec. 291.607 Qualified participants.
(a) Confidentiality Agreement and Bidder Qualification Statement.
Individuals or entities must become a Qualified Participant before they
may bid or purchase Single Family Loans in a Single Family Sale. An
individual or entity seeking to participate in a Single Family Sale
must sign a Confidentiality Agreement and complete a Bidder
Qualification Statement. The Secretary will specify which Bidder
Qualification Statement form(s) are applicable to a particular Single
Family Sale and any additional sale specific qualification criteria
through notice. HUD will only provide access to sensitive Single Family
Sale materials to Qualified Participants.
(b) Process for determining Qualified Participant. HUD will qualify
any individual or entity seeking to participate in a Single Family Sale
if they have met the qualification requirements and executed the
applicable Bidder Qualification Statement for the Single Family Sale.
Sec. 291.609 Bidding process.
(a) Sale notice. The Secretary will prescribe requirements for a
Single Family Sale through the Sale Notice. For each Single Family
Sale, HUD will publish the PSA Addendum, Desk Guide, ISA Addendum, CAA
Addendum, and Sale Notices on HUD's public website.
(b) Submission of bids. All bids by a Qualified Participant must be
submitted to HUD in accordance with the Sale Notice and the
instructions in the BIP. By submitting a bid, the Qualified Participant
is considered to have made an offer to purchase Single Family Loans as
presented in the BIP. Submission of a bid constitutes acceptance of the
terms and conditions set forth in the BIP. Along with the bid, the
Qualified Participant must submit an executed copy of the CAA and ISA,
as applicable.
(c) Bids by brokers or agents. Any bid submitted by a broker or
agent for a Qualified Participant must be made in the name of the
Qualified Participant and signed by the broker or agent as the
attorney-in-fact for the Qualified Participant. All such bid documents
must bind the Qualified Participant. Each bid must also include a power
of attorney satisfactory to HUD as to form and content.
(d) Earnest money deposits. The Qualified Participant must submit
to HUD, along with its bid, an earnest money deposit, as required in
the CAA or Sale Notice. The earnest money deposit is nonrefundable for
a Qualified Participant whose bid is selected for award and will be
credited toward the purchase price. If a Qualified Participant's bid is
not selected for any award, their earnest money will be returned.
(e) Timing for withdrawal of bids. A Qualified Participant may
withdraw a submitted bid in accordance with the instructions in the BIP
for a Single Family Sale. However, a previously submitted bid may not
be withdrawn once the bidding has closed.
(f) Termination of Single Family Sale. HUD reserves the right to
terminate a Single Family Sale in whole or in part at any time before
the bid date.
(g) Withdrawal of Single Family Loans. HUD reserves the right to
withdraw Single Family Loans from a Single Family Sale prior to the
settlement date. Any earnest money deposits made by a Purchaser
relating to withdrawn Single Family Loans will be retained by the
Secretary and credited toward the total purchase price of the
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remaining Single Family Loans in the pool, in accordance with the CAA
and BIP. After the bid date, HUD can withdraw Single Family Loans or
not deliver all the Single Family Loans for settlement for any reason,
including those set forth in the BIP and CAA.
(h) Rejection of bids. At HUD's discretion, any bid may be rejected
under the following circumstances:
(1) The bid does not conform with the instructions in the BIP;
(2) HUD determines that an award based on the bid would not be in
the best interests of the Secretary because the award would not further
HUD's fiduciary responsibility to the mutual mortgage insurance fund
(MMIF) or any stated mission objectives in the Sale Notice; or
(3) HUD can also issue a conditional rejection that would provide
the opportunity for the bid to be amended and resubmitted for
acceptance upon fulfillment of HUD's requests.
Sec. 291.611 Post-bid process and HUD's execution of the CAA.
After HUD evaluates conforming bids, HUD may request an adjustment
to a bid in accordance with the BIP. After any bid adjustments, HUD
will select bids for award and provide notice of award in a manner set
forth in the BIP. After selection of a Purchaser, HUD will execute the
CAA.
Sec. 291.613 Settlement requirements.
(a) Settlement payment. On the settlement date of a Single Family
Sale, the Purchaser must pay to HUD the settlement payment, consisting
of the balance of the amount due on the bid price, as adjusted in
accordance with the CAA.
(b) Settlement statement. When the Purchaser delivers to HUD the
documents required at settlement and the settlement payment in
paragraph (a) of this section, HUD will execute and deliver to the
Purchaser a settlement statement and updated Single Family Loan
schedule for the CAA to document the Single Family Loans sold to the
Purchaser in the Single Family Sale.
(c) Endorsement and assignment. HUD may grant a temporary Limited
Power of Attorney to the Purchaser to effect endorsement and assignment
of the Single Family Loans to the Purchaser.
(d) Purchaser's special purpose entity. HUD may allow a Purchaser
to endorse and assign Single Family Loans from HUD to Purchaser's
special purpose entity acquisition vehicle on terms permitted in the
CAA.
Sec. 291.615 Purchaser servicing requirements.
(a) Purchaser post-sale servicing. The Purchaser and its servicer,
and any subsequent transferee of or servicer for the Single Family
Loan, must comply with the terms of the CAA and the Sale Notice post-
sale loss mitigation and outcome requirements. Post-sale requirements
will include a requirement that any Single Family Loan that converts to
real estate owned property via foreclosure or deed-in-lieu of
foreclosure be offered for sale through a first look program, providing
an exclusive listing period for owner occupant, nonprofit organization,
governmental entities, and other prospective buyers as permitted by
HUD. Post-sale requirements will also include requirements that
Purchasers offer borrowers loss mitigation options that are as or more
generous than the FHA loss mitigation options, a prohibition on
reselling real estate owned property through a contract for deed or
similar financing mechanism, a requirement that the Purchaser obtain
prior approval from HUD before entering into a lease-purchase agreement
with a prospective purchaser, and a prohibition on releasing liens on
particular categories of properties, including vacant properties.
Purchasers must take all lawful steps to service the Single Family
Loans and collect amounts due in accordance with requirements as set
forth by the CAA and all state and Federal law requirements, including
applicable CFPB requirements.
(b) Purchaser reporting requirements. Purchasers must report on the
post-sale servicing actions and outcomes obtained for each Single
Family Loan purchased as prescribed by the CAA. HUD will publish
reports for the public on loan and property outcomes and will include a
breakdown of outcomes in different geographies. HUD will prescribe the
reporting period as a specified period after settlement in the CAA.
(c) Remedy for performance failures. HUD may pursue appropriate
remedies, including, but not limited to, the ability to deny future
participation in loan sales, for a Purchaser's failure to comply with
Single Family Sale requirements, including CAA obligations.
Sec. 291.617 General policy--Direct Sale of Single Family Loans.
The Secretary may pursue a Direct Sale of Single Family Loans to
individuals or entity type the Secretary determines may be eligible to
qualify as set forth in the Sale Notice. The Direct Sale of Single
Family Loans will be subject to the requirements of this subpart,
excluding Sec. Sec. 291.609 and 291.611. The Secretary will publish in
the Sale Notice, sale specific Single Family Loan eligibility criteria.
Sec. 291.619 Direct Sale of Single Family Loans process.
(a) Sale Notice. The Secretary will prescribe requirements for a
Direct Sale of Single Family Loans through a Sale Notice.
(b) Sale feasibility. In all stages of the Direct Sale of Single
Family Loans process, HUD may determine whether continuation with the
Direct Sale of Single Family Loans is feasible and in HUD's interest,
consistent with HUD's fiduciary responsibility to the MMIF and any
stated mission objectives.
(c) Direct Sale of Single Family Loans process. An individual or
entity interested in purchasing Single Family Loans through a Direct
Sale of Single Family Loans must:
(1) Meet the Secretary's prescribed requirements for the Direct
Sale of Single Family Loans in the Sale Notice; and
(2) Submit a letter of interest to the Secretary that includes, at
a minimum:
(i) The description of the individual or entity and a statement
about how it would be able to satisfy the participant eligibility
requirements and mission objectives, if any;
(ii) The geographic area of interest where the party wishes to
purchase the loans;
(iii) The individual or entity's goals and how this purchase would
assist in achieving these goals through post-sale outcomes;
(iv) The approximate timeframe for the purchase;
(v) The approximate number of loans or, alternatively, the
approximate gross sale amount desired; and
(vi) The organizational documents for an entity including, but not
limited to organizational documents, any required authorizing
resolutions, and disclosure of all nonprofit organization or private
entity partnership interests in the Direct Sale of Single Family Loans
transaction.
(d) HUD determination. Upon receipt of a letter in paragraph (c)(2)
of this section, HUD will respond in writing to the submitter to
confirm receipt of the letter and, if necessary, request additional
information needed for a final determination.
(e) Secretary's determination to proceed. (1) If the Secretary
makes a final determination to proceed, the Secretary will request from
the individual or entity, a business plan proposal from the individual
or entity that details its ability to meet any stated mission
objectives in the Sale Notice
[[Page 57810]]
along with its goals and how these goals will be achieved with post-
sale outcomes. Business plans must be received by HUD within 30
business days of request.
(2) Upon receipt and review of business plan proposal, HUD will:
(i) Reject the business plan proposal;
(ii) Issue a conditional rejection that would provide the
opportunity for a business plan proposal to be amended and resubmitted
for approval upon fulfillment of HUD's request; or
(iii) Approve the business plan proposal.
(3) Upon approval of such business plan proposal, HUD and the
individual or entity will begin the Direct Sale of Single Family Loans
process that includes:
(i) An executed Confidentiality Agreement;
(ii) An executed Bidder Qualification Statement;
(iii) A P-Servicer executed PSA; and
(iv) Review of Single Family Loans from P-Servicer(s) or HUD.
(4) HUD and the individual or entity reviews the ALD and will agree
on the Single Family Loan Sale List for the Direct Sale of Single
Family Loans.
(f) Direct Sale of Single Family Loans. After satisfaction of the
requirements in paragraph (d) of this section, HUD will conduct its
valuation review, and issue a final price determination and a CAA,
containing an estimated settlement date, to the individual or entity.
If accepted, a final Settlement date is scheduled, and the Single
Family Loan List is appended to the CAA.
(g) Settlement. HUD and the Purchaser will execute the CAA for
settlement. The remaining settlement and transfer requirements will
follow those in Sec. 291.613.
Sec. 291.621 Disqualifications.
(a) Fraudulent information. If HUD determines there is any
information indicating any certification or required document provided
by any party participating in a Single Family Sale, including but not
limited to P-Servicer, Purchaser, Qualified Participant, or a
Purchaser's servicer, is false, misleading, or constitutes fraud or
misrepresentation, HUD will not approve that party's participation in
the Single Family Sale and will revoke any prior approval. The
submission of false information or misrepresentation by an approved
lender or mortgagee may result in the referral of the mortgagee to the
Mortgagee Review Board.
(b) Participant ineligibility. An individual or entity is
ineligible to participate in a Single Family Sale if, at the time of
the Single Family Sale, that individual or entity is suspended,
debarred, under a limited denial of participation (LDP), or otherwise
restricted under 2 CFR part 180 or 2424, 24 CFR part 25, 48 CFR part 9,
subpart 9.4, or under similar procedures of any other Federal agency.
(c) Future participation. Purchasers that made misrepresentations
in the qualification process or failed to meet their contractual
obligations under CAAs, including failing to meet post-sale
requirements, for previous Single Family Sales in which they
participated may be disqualified from participation in one or more
future Single Family Sales or for a set period of time at the
discretion of the Secretary.
Julia Gordon,
Assistant Secretary for the Office of Housing--Federal Housing
Commissioner.
[FR Doc. 2024-15024 Filed 7-15-24; 8:45 am]
BILLING CODE 4210-67-P