[Federal Register Volume 90, Number 214 (Friday, November 7, 2025)]
[Notices]
[Pages 50493-50494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-19807]
========================================================================
Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
========================================================================
Federal Register / Vol. 90, No. 214 / Friday, November 7, 2025 /
Notices
[[Page 50493]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6568-N-02]
Notice of HUD Vacant Loan Sales (HVLS 2026-1)
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.
-----------------------------------------------------------------------
SUMMARY: This notice announces HUD's intention to offer approximately
1,165 home equity conversion mortgages (HECM, or reverse mortgage
loans) secured by vacant properties with a loan balance of
approximately $352 million, in a competitive sale. This initiative
supports HUD's continued efforts to reduce financial risk to the Mutual
Mortgage Insurance Fund and promote the efficient disposition of
defaulted assets. The sale will consist of due and payable Secretary-
held reverse mortgage loans. 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. This notice also generally describes the bidding process for
the sale and certain entities who are ineligible to bid. This is the
seventeenth sale offering of its type and will be held on December 9,
2025.
DATES:
Bidder's Information Package (BIP) Available: On or about November
3, 2025.
Bid Date: December 9, 2025 (bids must be submitted before 1:00 p.m.
EST).
Anticipated Award Date: On or about December 12, 2025.
ADDRESSES: To become an eligible bidder and receive the BIP for the
September sale, prospective bidders must complete, execute, and submit
a Confidentiality Agreement and Qualification Statement acceptable to
HUD. The documents will be available in preview form with free login on
the Transaction Specialist (TS), Falcon Capital Advisors, website:
http://www.falconassetsales.com. This website contains information and
links to register for the sale and electronically complete and submit
documents.
If you cannot 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:
Glenn Ervin, HUD HVLS Loan Sale Coordinator. eFax: 1-202-393-4125.
FOR FURTHER INFORMATION CONTACT: John Lucey, Director, Office of Asset
Sales, Room 9216, 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). 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.
SUPPLEMENTARY INFORMATION: This notice announces HUD's intention to
sell due and payable Secretary-held reverse mortgage loans in HVLS
2026-1. HUD is offering approximately 1,165 reverse mortgage notes with
a loan balance of approximately $352 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.
A listing of the mortgage loans will be included in the due
diligence materials made available to eligible bidders. The mortgage
loans will be sold without FHA insurance and with servicing released.
The Bidding Process
The BIP describes in detail the procedure for bidding in HVLS 2026-
1. The BIP also includes the applicable standardized non-negotiable
Conveyance, Assignment and Assumption Agreements for HVLS 2026-1 (CAA).
The CAAs will NOT contain first look requirements or mission outcome
goals.
HUD will evaluate the bids submitted and determine the successful
bids, in terms of the best value to HUD, in its sole and absolute
discretion. If a bidder is successful, it will be required to submit a
deposit which will be calculated based upon the total dollar value of
the bidder's potential award. Award will be contingent on receiving the
deposit in the timeframe outlined in the bid deposit confirmation. The
deposit amount will be applied to the sale price on the settlement
date.
This notice provides some of the basic terms of sale. The CAA will
be released in the BIP or BIP Supplement, as applicable. These
documents provide comprehensive contractual terms and conditions to
which eligible bidders will acknowledge and agree. 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 eligible 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 a sale 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 unsold reverse mortgage loans from the HVLS
2026-1 sale 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 reverse mortgage loans offered for sale 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
HUD's authority in 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 reverse mortgage loans for this specific sale transaction. For
the HVLS 2026-1 sale, HUD has determined that this method of sale
optimizes HUD's return on the sale of these reverse mortgage loans,
affords the greatest
[[Page 50494]]
opportunity for all eligible bidders to bid on the reverse mortgage
loans, and provides the quickest and most efficient vehicle for HUD to
dispose of the due and payable reverse mortgage loans.
Bidder Ineligibility
In order to bid in HVLS 2026-1 as an eligible bidder, a prospective
bidder must complete, execute, and submit a Confidentiality Agreement
and a Qualification Statement (HUD-9611) that is acceptable to HUD. In
past sales, nonprofit and governmental entities were able to submit an
addendum (HUD-9612), which required additional certifications and
documentation regarding the entity's organizational structure. This
additional information collection will be removed for HVLS 2026-1.
Nonprofit and governmental entities will be required to certify
eligibility only under the Qualification Statement (HUD-9611). The
Confidentiality Agreement and Qualification Statement collectively are
the ``Qualification Statement Documents.'' In the Qualification
Statement, the prospective bidder must disclose its key employees,
including officers, directors and other decision makers and provide
certain representations and warranties regarding the prospective
bidder, including (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 2026-1 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 a
past sale;
6. An employee of HUD's Office of Housing, a member of such
employee's household, or an entity owned or controlled by any such
employee or member of such an employee's household with household to be
inclusive of the employee's father, mother, stepfather, stepmother,
brother, sister, stepbrother, stepsister, son, daughter, stepson,
stepdaughter, grandparent, grandson, granddaughter, father-in-law,
mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-
law, first cousin, the spouse of any of the foregoing, and the
employee's spouse;
7. A contractor, subcontractor, and/or consultant or advisor
(including any agent, employee, partner, director, or principal of any
of the foregoing) who performed services for or on behalf of HUD in
connection with the sale;
8. An individual or entity that knowingly acquired or will acquire
prior to the sale date material non-public information, other than that
information which is made available to Bidder by HUD pursuant to the
terms of this Qualification Statement, about mortgage loans offered in
the sale;
9. An individual or entity 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 2026-1, 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 2026-1, 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 2026-1 and does not establish HUD's
policy for the sale of other mortgage loans.
Frank Cassidy,
Principal Deputy Assistant Secretary for the Office of Housing and FHA.
[FR Doc. 2025-19807 Filed 11-6-25; 8:45 am]
BILLING CODE 4210-67-P