81 FR 84610 - Notice of HUD Vacant Loan Sales (HVLS 2017-1)

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 81, Issue 226 (November 23, 2016)

Page Range		84610-84611
FR Document		2016-28244

This notice announces HUD's intention to competitively offer multiple residential reverse mortgage pools consisting of approximately 1,700 reverse mortgage notes secured by properties with an aggregate broker price opinion of approximately $220 million. 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 persons who are ineligible to bid. This is the first sale offering of its type and the sale will be held on November 30, 2016.

Federal Register, Volume 81 Issue 226 (Wednesday, November 23, 2016)

[Federal Register Volume 81, Number 226 (Wednesday, November 23, 2016)]
[Notices]
[Pages 84610-84611]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-28244]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5993-N-01]

Notice of HUD Vacant Loan Sales (HVLS 2017-1)

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.

ACTION: Notice of sales of reverse mortgage loans.

-----------------------------------------------------------------------

SUMMARY: This notice announces HUD's intention to competitively offer
multiple residential reverse mortgage pools consisting of approximately
1,700 reverse mortgage notes secured by properties with an aggregate
broker price opinion of approximately $220 million. 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 persons who are ineligible to bid. This is the first
sale offering of its type and the sale will be held on November 30,
2016.

DATES: For this sale action, the Bidder's Information Package (BIP) is
expected to be made available to qualified bidders on or about October
28, 2016. Bids for the HVLS 2017-1 sale will be accepted on the Bid
Date of November 30, 2016 (Bid Date). HUD anticipates that award(s)
will be made on or about December 1, 2016 (the Award Date).

ADDRESSES: To become a qualified bidder and receive the BIP,
prospective bidders must complete, execute, and submit a
Confidentiality Agreement and a Qualification Statement acceptable to
HUD. Both documents are available via the HUD Web site at: http://www.hud.gov/sfloansales or via: http://www.verdiassetsales.com. Please
mail and fax executed documents to Verdi Consulting, Inc.: Verdi
Consulting, Inc., 8400 Westpark Drive, 4th Floor, McLean, VA 22102,
Attention: HUD SFLS Loan Sale Coordinator, Fax: 1-703-584-7790.

FOR FURTHER INFORMATION CONTACT: John Lucey, Director, Asset Sales
Office, Room 3136, Department of Housing and Urban Development, 451
Seventh Street SW., Washington, DC 20410-8000; telephone 202-708-2625,
extension 3927. Hearing- or speech-impaired individuals may call 202-
708-4594 (TTY). These are not toll-free numbers.

SUPPLEMENTARY INFORMATION:
HUD announces its intention to sell in HVLS 2017-1 due and payable
Secretary-held reverse mortgage loans. The 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 is included in the due diligence
materials made available to qualified bidders. The mortgage loans will
be sold without FHA insurance and with servicing released. HUD will
offer qualified bidders an opportunity to bid competitively on the
mortgage loans. The loans are expected to be offered in five regional
pools.

The Bidding Process

The BIP describes in detail the procedure for bidding in HVLS 2017-
1. The BIP also includes a standardized non-negotiable Conveyance,
Assignment and Assumption Agreement for HVLS 2017-1 (CAA). Qualified
bidders will be required to submit a deposit with their bid. Deposits
are calculated based upon each qualified bidder's aggregate bid price.
HUD will evaluate the bids submitted and determine the successful
bid, in terms of the best value to HUD, in its sole and absolute
discretion. If a qualified bidder is successful, the qualified bidder's
deposit will be non-refundable and will be applied toward the purchase
price. Deposits will be returned to unsuccessful bidders.
This notice provides some of the basic terms of sale. The CAA,
which is included in the BIP, provides comprehensive contractual terms
and conditions. To ensure a competitive bidding process, the terms of
the bidding process and the CAA are not subject to negotiation.

Due Diligence Review

The BIP describes how qualified bidders may access the due
diligence materials remotely via a high-speed Internet connection.

Mortgage Loan Sale Policy

HUD reserves the right to remove mortgage loans from HVLS 2017-1 at
any time prior to the Award Date. HUD also reserves the right to reject
any and all bids, in whole or in part, and include any reverse mortgage
loans in a later sale. Deliveries of mortgage loans will occur in
conjunction with settlement and servicing transfer, approximately 30 to
45 days after the Award Date.
The HVLS 2017-1 reverse mortgage loans were insured by and were
assigned to HUD pursuant to section 255 of the National Housing Act, as
amended. The sale of the reverse mortgage loans is pursuant to section
204(g) of the National Housing Act.

Mortgage Loan Sale Procedure

HUD selected an open competitive whole-loan sale as the method to
sell the mortgage loans for this specific sale transaction. For HVLS
2017-1, HUD has determined that this method of sale optimizes HUD's
return on the sale of these loans, affords the greatest opportunity for
all qualified bidders to bid on the mortgage loans, and provides the
quickest and most efficient vehicle for HUD to dispose of the mortgage
loans.

Bidder Ineligibility

In order to bid in HVLS 2017-1 as a qualified bidder, a prospective
bidder must complete, execute and submit both a Confidentiality
Agreement and a Qualification Statement acceptable to HUD. In the
Qualification Statement, the prospective bidder must provide certain
representations and warranties regarding the prospective bidder,
including but not limited to (i) the prospective bidder's board of
directors, (ii) the prospective bidder's direct parent, (iii) the
prospective bidder's subsidiaries, (iv) any related entity with which
the prospective bidder shares a common officer, director, subcontractor
or sub-contractor who has access to Confidential Information as defined
in the Confidentiality Agreement or is involved in the formation of a
bid transaction (collectively the ``Related Entities''), and (v) the
prospective bidder's repurchase lenders. The prospective bidder is
ineligible to bid on any of the reverse mortgage loans included in HVLS
2017-1 if the prospective bidder, its Related Entities or its
repurchase lenders, is any of the following, unless other exceptions
apply as provided for the in Qualification Statement.
1. An individual or entity that is currently debarred, suspended,
or excluded from doing business with

[[Page 84611]]

HUD pursuant to the Governmentwide Suspension and Debarment regulations
at 2 CFR parts 180 and 2424;
2. An individual or entity that is currently suspended, debarred or
otherwise restricted by any department or agency of the federal
government or of a state government from doing business with such
department or agency;
3. An individual or entity that is currently debarred, suspended,
or excluded from doing mortgage related business, including having a
business license suspended, surrendered or revoked, by any federal,
state or local government agency, division or department;
4. An entity that has had its right to act as a Government National
Mortgage Association (``Ginnie Mae'') issuer terminated and its
interest in mortgages backing Ginnie Mae mortgage-backed securities
extinguished by Ginnie Mae;
5. An individual or entity that is in violation of its neighborhood
stabilizing outcome obligations or post-sale reporting requirements
under a Conveyance, Assignment and Assumption Agreement executed for
any previous mortgage loansale of HUD;
6. An employee of HUD's Office of Housing, a member of such
employee's household, or an entity owned or controlled by any such
employee or member of such an employee's household with household to be
inclusive of the employee's father, mother, stepfather, stepmother,
brother, sister, stepbrother, stepsister, son, daughter, stepson,
stepdaughter, grandparent, grandson, granddaughter, father-in-law,
mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-
law, first cousin, the spouse of any of the foregoing, and the
employee's spouse;
7. A contractor, subcontractor and/or consultant or advisor
(including any agent, employee, partner, director, or principal of any
of the foregoing) who performed services for or on behalf of HUD in
connection with the sale;
8. An individual or entity that knowingly acquired or will acquire
prior to the sale date material non-public information, other than that
information which is made available to Bidder by HUD pursuant to the
terms of this Qualification Statement, about mortgage loans offered in
the sale;
9. 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;
10. An individual or entity which knowingly employs or uses the
services of an employee of HUD's Office of Housing (other than in such
employee's official capacity); or
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 two-year period prior to the bid, or
(b) is any principal of any entity or individual described in the
preceding sentence;
(c) any employee or subcontractor of such entity or individual
during that two-year period; or
(d) any entity or individual that employs or uses the services of
any other entity or individual described in this paragraph in preparing
its bid on such reverse mortgage loan.

Freedom of Information Act Requests

HUD reserves the right, in its sole and absolute discretion, to
disclose information regarding HVLS 2017-1, including, but not limited
to, the identity of any successful qualified bidder and its bid price
or bid percentage for any pool of loans or individual loan, upon the
closing of the sale of all the Mortgage Loans. Even if HUD elects not
to publicly disclose any information relating to SFLS 2017-1, 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 2017-1 and does not establish HUD's
policy for the sale of other mortgage loans.

Dated: November 16, 2016.
Edward L. Golding,
Principal Deputy Assistant Secretary for Housing.
[FR Doc. 2016-28244 Filed 11-22-16; 8:45 am]
BILLING CODE 4210-67-P

84610 Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Notices

technology, e.g., permitting electronic Consulting, Inc.: Verdi Consulting, Inc., Mortgage Loan Sale Policy
submission of responses. 8400 Westpark Drive, 4th Floor, HUD reserves the right to remove
HUD encourages interested parties to McLean, VA 22102, Attention: HUD mortgage loans from HVLS 2017–1 at
submit comment in response to these SFLS Loan Sale Coordinator, Fax: 1– any time prior to the Award Date. HUD
questions. 703–584–7790. also reserves the right to reject any and
Authority: Section 3507 of the Paperwork FOR FURTHER INFORMATION CONTACT: John all bids, in whole or in part, and include
Reduction Act of 1995, 44 U.S.C. Chapter 35. Lucey, Director, Asset Sales Office, any reverse mortgage loans in a later
Dated: November 17, 2016. Room 3136, Department of Housing and sale. Deliveries of mortgage loans will
Janet M. Golrick, Urban Development, 451 Seventh Street occur in conjunction with settlement
Associate General Deputy Assistant Secretary
SW., Washington, DC 20410–8000; and servicing transfer, approximately 30
for Housing Associate Deputy Federal telephone 202–708–2625, extension to 45 days after the Award Date.
Housing Commissioner. 3927. Hearing- or speech-impaired The HVLS 2017–1 reverse mortgage
[FR Doc. 2016–28245 Filed 11–22–16; 8:45 am] individuals may call 202–708–4594 loans were insured by and were
BILLING CODE 4210–67–P
(TTY). These are not toll-free numbers. assigned to HUD pursuant to section
SUPPLEMENTARY INFORMATION: 255 of the National Housing Act, as
HUD announces its intention to sell in amended. The sale of the reverse
DEPARTMENT OF HOUSING AND HVLS 2017–1 due and payable mortgage loans is pursuant to section
URBAN DEVELOPMENT Secretary-held reverse mortgage loans. 204(g) of the National Housing Act.
The loans consist of first liens secured
[Docket No. FR–5993–N–01] Mortgage Loan Sale Procedure
by single family, vacant residential
Notice of HUD Vacant Loan Sales properties, where all borrowers are HUD selected an open competitive
(HVLS 2017–1) deceased and no borrower is survived whole-loan sale as the method to sell
by a non-borrowing spouse. the mortgage loans for this specific sale
AGENCY: Office of the Assistant A listing of the mortgage loans is transaction. For HVLS 2017–1, HUD has
Secretary for Housing—Federal Housing included in the due diligence materials determined that this method of sale
Commissioner, HUD. made available to qualified bidders. The optimizes HUD’s return on the sale of
ACTION: Notice of sales of reverse mortgage loans will be sold without these loans, affords the greatest
mortgage loans. FHA insurance and with servicing opportunity for all qualified bidders to
released. HUD will offer qualified bid on the mortgage loans, and provides
SUMMARY: This notice announces HUD’s bidders an opportunity to bid the quickest and most efficient vehicle
intention to competitively offer multiple competitively on the mortgage loans. for HUD to dispose of the mortgage
residential reverse mortgage pools The loans are expected to be offered in loans.
consisting of approximately 1,700 five regional pools.
reverse mortgage notes secured by Bidder Ineligibility
properties with an aggregate broker The Bidding Process In order to bid in HVLS 2017–1 as a
price opinion of approximately $220 The BIP describes in detail the qualified bidder, a prospective bidder
million. The sale will consist of due and procedure for bidding in HVLS 2017–1. must complete, execute and submit both
payable Secretary-held reverse mortgage The BIP also includes a standardized a Confidentiality Agreement and a
loans. The mortgage loans consist of non-negotiable Conveyance, Assignment Qualification Statement acceptable to
first liens secured by single family, and Assumption Agreement for HVLS HUD. In the Qualification Statement,
vacant residential properties, where all 2017–1 (CAA). Qualified bidders will be the prospective bidder must provide
borrowers are deceased and no borrower required to submit a deposit with their certain representations and warranties
is survived by a non-borrowing spouse. bid. Deposits are calculated based upon regarding the prospective bidder,
This notice also generally describes each qualified bidder’s aggregate bid including but not limited to (i) the
the bidding process for the sale and price. prospective bidder’s board of directors,
certain persons who are ineligible to HUD will evaluate the bids submitted (ii) the prospective bidder’s direct
bid. This is the first sale offering of its and determine the successful bid, in parent, (iii) the prospective bidder’s
type and the sale will be held on terms of the best value to HUD, in its subsidiaries, (iv) any related entity with
November 30, 2016. sole and absolute discretion. If a which the prospective bidder shares a
DATES: For this sale action, the Bidder’s qualified bidder is successful, the common officer, director, subcontractor
Information Package (BIP) is expected to qualified bidder’s deposit will be non- or sub-contractor who has access to
be made available to qualified bidders refundable and will be applied toward Confidential Information as defined in
on or about October 28, 2016. Bids for the purchase price. Deposits will be the Confidentiality Agreement or is
the HVLS 2017–1 sale will be accepted returned to unsuccessful bidders. involved in the formation of a bid
on the Bid Date of November 30, 2016 This notice provides some of the basic transaction (collectively the ‘‘Related
(Bid Date). HUD anticipates that terms of sale. The CAA, which is Entities’’), and (v) the prospective
award(s) will be made on or about included in the BIP, provides bidder’s repurchase lenders. The
December 1, 2016 (the Award Date). comprehensive contractual terms and prospective bidder is ineligible to bid on
ADDRESSES: To become a qualified conditions. To ensure a competitive any of the reverse mortgage loans
bidder and receive the BIP, prospective bidding process, the terms of the included in HVLS 2017–1 if the
bidders must complete, execute, and prospective bidder, its Related Entities
mstockstill on DSK3G9T082PROD with NOTICES

bidding process and the CAA are not
submit a Confidentiality Agreement and subject to negotiation. or its repurchase lenders, is any of the
a Qualification Statement acceptable to following, unless other exceptions apply
HUD. Both documents are available via Due Diligence Review as provided for the in Qualification
the HUD Web site at: http:// The BIP describes how qualified Statement.
www.hud.gov/sfloansales or via: http:// bidders may access the due diligence 1. An individual or entity that is
www.verdiassetsales.com. Please mail materials remotely via a high-speed currently debarred, suspended, or
and fax executed documents to Verdi Internet connection. excluded from doing business with

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Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Notices 84611

HUD pursuant to the Governmentwide of an employee of HUD’s Office of DEPARTMENT OF THE INTERIOR
Suspension and Debarment regulations Housing (other than in such employee’s
at 2 CFR parts 180 and 2424; official capacity); or Bureau of Land Management
2. An individual or entity that is The Qualification Statement has
[15XL LLIDB00100 LF1000000.HT0000
currently suspended, debarred or additional representations and LXSS020D0000 241A 4500084766]
otherwise restricted by any department warranties which the prospective bidder
or agency of the federal government or must make, including but not limited to Notice of Availability of the Draft
of a state government from doing the representation and warranty that the Environmental Impact Statement for
business with such department or prospective bidder or its Related the Proposed Bruneau-Owyhee Sage-
agency; Entities are not and will not knowingly Grouse Habitat Project, Owyhee
3. An individual or entity that is use the services, directly or indirectly, County, Idaho
currently debarred, suspended, or of any person or entity that is, any of the
excluded from doing mortgage related following (and to the extent that any AGENCY: Bureau of Land Management,
business, including having a business such individual or entity would prevent Interior.
license suspended, surrendered or the prospective bidder from making the ACTION: Notice.
revoked, by any federal, state or local following representations, such
government agency, division or individual or entity has been removed SUMMARY: In accordance with the
department; from participation in all activities National Environmental Policy Act of
4. An entity that has had its right to related to this sale and has no ability to 1969, as amended (NEPA), the Bureau of
act as a Government National Mortgage influence or control individuals Land Management (BLM) has prepared
Association (‘‘Ginnie Mae’’) issuer involved in formation of a bid for this a Draft Environmental Impact Statement
terminated and its interest in mortgages sale): (Draft EIS) for the proposed Bruneau-
backing Ginnie Mae mortgage-backed (1) An entity or individual is Owyhee Sage-Grouse Habitat (BOSH)
securities extinguished by Ginnie Mae; ineligible to bid on any included reverse Project and by this notice is announcing
5. An individual or entity that is in mortgage loan or on the pool containing the opening of the comment period.
violation of its neighborhood stabilizing such reverse mortgage loan because it is DATES: To ensure comments will be
outcome obligations or post-sale an entity or individual that: considered, the BLM must receive
reporting requirements under a (a) serviced or held such reverse written comments on the Bruneau-
Conveyance, Assignment and mortgage loan at any time during the Owyhee Sage-Grouse Habitat Project
Assumption Agreement executed for two-year period prior to the bid, or Draft EIS within 45 days of this Notice
any previous mortgage loansale of HUD; (b) is any principal of any entity or of Availability being published in the
6. An employee of HUD’s Office of individual described in the preceding Federal Register. The BLM will
Housing, a member of such employee’s sentence; announce future meetings or hearings
household, or an entity owned or (c) any employee or subcontractor of
and any other public involvement
controlled by any such employee or such entity or individual during that
activities at least 15 days in advance
member of such an employee’s two-year period; or
(d) any entity or individual that through public notices, media releases,
household with household to be and mailings.
inclusive of the employee’s father, employs or uses the services of any
other entity or individual described in ADDRESSES: You may submit comments
mother, stepfather, stepmother, brother,
this paragraph in preparing its bid on related to the proposed Bruneau-
sister, stepbrother, stepsister, son,
such reverse mortgage loan. Owyhee Sage-Grouse Habitat Project by
daughter, stepson, stepdaughter,
any of the following methods:
grandparent, grandson, granddaughter, Freedom of Information Act Requests • Web site: http://www.blm.gov/id/st/
father-in-law, mother-in-law, brother-in-
HUD reserves the right, in its sole and en/prog/nepa_register/BOSH-juniper-
law, sister-in-law, son-in-law, daughter- absolute discretion, to disclose removal.html.
in-law, first cousin, the spouse of any of information regarding HVLS 2017–1, • Email: blm_id_bruneauo
the foregoing, and the employee’s including, but not limited to, the wyheesagegrouse@blm.gov.
spouse;
7. A contractor, subcontractor and/or
identity of any successful qualified • Fax: 208–384–3205.
consultant or advisor (including any
bidder and its bid price or bid • Mail: 3948 S. Development Ave.,
percentage for any pool of loans or Boise, ID 83705.
agent, employee, partner, director, or
individual loan, upon the closing of the Please title your correspondence,
principal of any of the foregoing) who
sale of all the Mortgage Loans. Even if ‘‘BOSH Project’’ and include ‘‘Attn:
performed services for or on behalf of HUD elects not to publicly disclose any
HUD in connection with the sale; Mike McGee.’’ Electronic copies of the
information relating to SFLS 2017–1, proposed Bruneau-Owyhee Sage-Grouse
8. An individual or entity that
HUD will disclose any information that Habitat Project Draft EIS are available at
knowingly acquired or will acquire
HUD is obligated to disclose pursuant to the BLM Boise District Office at the
prior to the sale date material non-
the Freedom of Information Act and all above address; you may also view or
public information, other than that
regulations promulgated thereunder. download the Draft EIS at the Web site
information which is made available to
Bidder by HUD pursuant to the terms of Scope of Notice listed above.
this Qualification Statement, about FOR FURTHER INFORMATION CONTACT:
This notice applies to HVLS 2017–1
mortgage loans offered in the sale; Mike McGee, Project Lead/Wildlife
and does not establish HUD’s policy for
9. An individual or entity that Biologist, 3948 S. Development Ave.,
mstockstill on DSK3G9T082PROD with NOTICES

the sale of other mortgage loans.
knowingly uses the services, directly or Boise, ID 83705; via email at
indirectly, of any person or entity Dated: November 16, 2016. blm_id_bruneauowyheesagegrouse
ineligible under 1 through 10 to assist Edward L. Golding, @blm.gov; or phone (208) 384–3464.
in preparing any of its bids on the Principal Deputy Assistant Secretary for Persons who use a telecommunications
mortgage loans; Housing. device for the deaf (TDD) may call the
10. An individual or entity which [FR Doc. 2016–28244 Filed 11–22–16; 8:45 am] Federal Relay Service at 1–800–877–
knowingly employs or uses the services BILLING CODE 4210–67–P 8339 to contact Mr. McGee. The Service

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Document Created: 2016-11-23 05:29:31
Document Modified: 2016-11-23 05:29:31

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice of sales of reverse mortgage loans.
Dates		For this sale action, the Bidder's Information Package (BIP) is expected to be made available to qualified bidders on or about October 28, 2016. Bids for the HVLS 2017-1 sale will be accepted on the Bid Date of November 30, 2016 (Bid Date). HUD anticipates that award(s) will be made on or about December 1, 2016 (the Award Date).
Contact		John Lucey, Director, Asset Sales Office, Room 3136, Department of Housing and Urban Development, 451 Seventh Street SW., Washington, DC 20410-8000; telephone 202-708-2625, extension 3927. Hearing- or speech-impaired individuals may call 202- 708-4594 (TTY). These are not toll-free numbers.
FR Citation		81 FR 84610