82 FR 26708 - Notice of HUD Vacant Loan Sales (HVLS 2017-2)

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 82, Issue 109 (June 8, 2017)

Page Range		26708-26710
FR Document		2017-11944

This notice announces HUD's intention to competitively offer multiple residential reverse mortgage pools consisting of approximately 885 reverse mortgage notes secured by properties with an aggregate broker price opinion of approximately $120 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. The Department has verified the death of borrowers by obtaining a death certificate or a notice of death for each and verified vacancy through its review of interior Broker Price Opinions (BPOs), where available and, where unavailable, exterior BPOs. This notice also describes the bidding process for the sale and certain persons who are ineligible to bid. This is the second sale offering of its type and the sale will be held on June 21, 2017.

Federal Register, Volume 82 Issue 109 (Thursday, June 8, 2017)

[Federal Register Volume 82, Number 109 (Thursday, June 8, 2017)]
[Notices]
[Pages 26708-26710]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-11944]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6034-N-02]

Notice of HUD Vacant Loan Sales (HVLS 2017-2)

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

ACTION: Notice of sales of reverse mortgage loans.

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SUMMARY: This notice announces HUD's intention to competitively offer
multiple residential reverse mortgage pools consisting of approximately
885 reverse mortgage notes secured by properties with an aggregate
broker price opinion of approximately $120 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. The Department has
verified the death of borrowers by obtaining a death certificate or a
notice of death for each and verified vacancy through its review of
interior Broker Price Opinions (BPOs), where available and, where
unavailable, exterior BPOs. This notice also describes the bidding
process for the sale and certain persons who are ineligible to bid.
This is the second sale offering of its type and the sale will be held
on June 21, 2017.

DATES: For this sale action, the Bidder's Information Package (BIP) was
made available to qualified bidders on May 23, 2017. Bids for the HVLS
2017-2 sale will be accepted on the Bid Date of June 21, 2017 (Bid
Date). HUD anticipates that award(s) will be made on or about June 26,
2017 (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
2017-2 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 Federal Housing Administration (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-
2. The BIP also includes a standardized non-negotiable Conveyance,
Assignment

[[Page 26709]]

and Assumption Agreement for HVLS 2017-2 (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 2017-2 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 2017-2 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
2017-2, 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; provides the
quickest and most efficient vehicle for HUD to dispose of the mortgage
loans, which are currently accruing significant holding costs; and
serves as the most appropriate vehicle for reducing both the costs
borne by the Department and the number of Secretary-held loans.

Bidder Ineligibility

In order to bid in HVLS 2017-2 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
2017-2 if the prospective bidder, its Related Entities or its
repurchase lenders, is any of the following, unless other exceptions
apply as provided for in the Qualification Statement.
1. An individual or entity that is currently debarred, suspended,
or excluded from doing business with HUD pursuant to the Governmentwide
Suspension and Debarment regulations at 2 CFR parts 180 and 2424;
2. An individual or entity that is currently suspended, debarred or
otherwise restricted by any department or agency of the federal
government or of a state government from doing business with such
department or agency;
3. An individual or entity that is currently debarred, suspended,
or excluded from doing mortgage related business, including having a
business license suspended, surrendered or revoked, by any federal,
state or local government agency, division or department;
4. An entity that has had its right to act as a Government National
Mortgage Association (``Ginnie Mae'') issuer terminated and its
interest in mortgages backing Ginnie Mae mortgage-backed securities
extinguished by Ginnie Mae;
5. An individual or entity that is in violation of its neighborhood
stabilizing outcome obligations or post-sale reporting requirements
under a Conveyance, Assignment and Assumption Agreement executed for
any previous mortgage loan sale of HUD;
6. An employee of HUD's Office of Housing, a member of such
employee's household, or an entity owned or controlled by any such
employee or member of such an employee's household with household to be
inclusive of the employee's father, mother, stepfather, stepmother,
brother, sister, stepbrother, stepsister, son, daughter, stepson,
stepdaughter, grandparent, grandson, granddaughter, father-in-law,
mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-
law, first cousin, the spouse of any of the foregoing, and the
employee's spouse;
7. A contractor, subcontractor and/or consultant or advisor
(including any agent, employee, partner, director, or principal of any
of the foregoing) who performed services for or on behalf of HUD in
connection with the sale;
8. An individual or entity that knowingly acquired or will acquire
prior to the sale date material non-public information, other than that
information which is made available to Bidder by HUD pursuant to the
terms of this Qualification Statement, about mortgage loans offered in
the sale;
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; or
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).
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

[[Page 26710]]

(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 2017-2, 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 2017-2, 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 2017-2 and does not establish HUD's
policy for the sale of other mortgage loans.

Dated: June 2, 2017.
Genger Charles,
General Deputy Assistant Secretary for Housing.
[FR Doc. 2017-11944 Filed 6-7-17; 8:45 am]
BILLING CODE 4210-67-P

Federal Register / Vol. 82, No. 109 / Thursday, June 8, 2017 / Notices 26709

and Assumption Agreement for HVLS Bidder Ineligibility 6. An employee of HUD’s Office of
2017–2 (CAA). Qualified bidders will be Housing, a member of such employee’s
In order to bid in HVLS 2017–2 as a
required to submit a deposit with their household, or an entity owned or
qualified bidder, a prospective bidder
bid. Deposits are calculated based upon controlled by any such employee or
must complete, execute and submit both
each qualified bidder’s aggregate bid member of such an employee’s
a Confidentiality Agreement and a
price. household with household to be
Qualification Statement acceptable to
HUD will evaluate the bids submitted inclusive of the employee’s father,
HUD. In the Qualification Statement,
and determine the successful bid, in mother, stepfather, stepmother, brother,
the prospective bidder must provide
terms of the best value to HUD, in its sister, stepbrother, stepsister, son,
certain representations and warranties
sole and absolute discretion. If a daughter, stepson, stepdaughter,
regarding the prospective bidder,
qualified bidder is successful, the grandparent, grandson, granddaughter,
including but not limited to (i) the
qualified bidder’s deposit will be non- father-in-law, mother-in-law, brother-in-
prospective bidder’s board of directors,
refundable and will be applied toward law, sister-in-law, son-in-law, daughter-
(ii) the prospective bidder’s direct
in-law, first cousin, the spouse of any of
the purchase price. Deposits will be parent, (iii) the prospective bidder’s
the foregoing, and the employee’s
returned to unsuccessful bidders. subsidiaries, (iv) any related entity with
spouse;
This notice provides some of the basic which the prospective bidder shares a
7. A contractor, subcontractor and/or
terms of sale. The CAA, which is common officer, director, subcontractor
consultant or advisor (including any
included in the BIP, provides or sub-contractor who has access to
agent, employee, partner, director, or
comprehensive contractual terms and Confidential Information as defined in
principal of any of the foregoing) who
conditions. To ensure a competitive the Confidentiality Agreement or is
performed services for or on behalf of
bidding process, the terms of the involved in the formation of a bid
HUD in connection with the sale;
bidding process and the CAA are not transaction (collectively the ‘‘Related
8. An individual or entity that
subject to negotiation. Entities’’), and (v) the prospective
knowingly acquired or will acquire
bidder’s repurchase lenders. The
Due Diligence Review prior to the sale date material non-
prospective bidder is ineligible to bid on
public information, other than that
any of the reverse mortgage loans
The BIP describes how qualified information which is made available to
included in HVLS 2017–2 if the
bidders may access the due diligence Bidder by HUD pursuant to the terms of
prospective bidder, its Related Entities
materials remotely via a high-speed this Qualification Statement, about
or its repurchase lenders, is any of the
Internet connection. mortgage loans offered in the sale;
following, unless other exceptions apply
9. An individual or entity that
Mortgage Loan Sale Policy as provided for in the Qualification
knowingly uses the services, directly or
Statement.
HUD reserves the right to remove indirectly, of any person or entity
1. An individual or entity that is ineligible under 1 through 10 to assist
mortgage loans from HVLS 2017–2 at currently debarred, suspended, or
any time prior to the Award Date. HUD in preparing any of its bids on the
excluded from doing business with mortgage loans; or
also reserves the right to reject any and HUD pursuant to the Governmentwide
all bids, in whole or in part, and include 10. An individual or entity which
Suspension and Debarment regulations knowingly employs or uses the services
any reverse mortgage loans in a later at 2 CFR parts 180 and 2424;
sale. Deliveries of mortgage loans will of an employee of HUD’s Office of
2. An individual or entity that is Housing (other than in such employee’s
occur in conjunction with settlement currently suspended, debarred or
and servicing transfer, approximately 30 official capacity).
otherwise restricted by any department The Qualification Statement has
to 45 days after the Award Date. or agency of the federal government or additional representations and
The HVLS 2017–2 reverse mortgage of a state government from doing warranties which the prospective bidder
loans were insured by and were business with such department or must make, including but not limited to
assigned to HUD pursuant to section agency; the representation and warranty that the
255 of the National Housing Act, as 3. An individual or entity that is prospective bidder or its Related
amended. The sale of the reverse currently debarred, suspended, or Entities are not and will not knowingly
mortgage loans is pursuant to section excluded from doing mortgage related use the services, directly or indirectly,
204(g) of the National Housing Act. business, including having a business of any person or entity that is, any of the
license suspended, surrendered or following (and to the extent that any
Mortgage Loan Sale Procedure
revoked, by any federal, state or local such individual or entity would prevent
HUD selected an open competitive government agency, division or the prospective bidder from making the
whole-loan sale as the method to sell department; following representations, such
the mortgage loans for this specific sale 4. An entity that has had its right to individual or entity has been removed
transaction. For HVLS 2017–2, HUD has act as a Government National Mortgage from participation in all activities
determined that this method of sale Association (‘‘Ginnie Mae’’) issuer related to this sale and has no ability to
optimizes HUD’s return on the sale of terminated and its interest in mortgages influence or control individuals
these loans; affords the greatest backing Ginnie Mae mortgage-backed involved in formation of a bid for this
securities extinguished by Ginnie Mae; sale):
asabaliauskas on DSKBBXCHB2PROD with NOTICES

opportunity for all qualified bidders to
bid on the mortgage loans; provides the 5. An individual or entity that is in (1) An entity or individual is
quickest and most efficient vehicle for violation of its neighborhood stabilizing ineligible to bid on any included reverse
HUD to dispose of the mortgage loans, outcome obligations or post-sale mortgage loan or on the pool containing
which are currently accruing significant reporting requirements under a such reverse mortgage loan because it is
holding costs; and serves as the most Conveyance, Assignment and an entity or individual that:
appropriate vehicle for reducing both Assumption Agreement executed for (a) Serviced or held such reverse
the costs borne by the Department and any previous mortgage loan sale of mortgage loan at any time during the
the number of Secretary-held loans. HUD; six-month period prior to the bid, or

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Document Created: 2018-11-14 10:07:16
Document Modified: 2018-11-14 10:07:16

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) was made available to qualified bidders on May 23, 2017. Bids for the HVLS 2017-2 sale will be accepted on the Bid Date of June 21, 2017 (Bid Date). HUD anticipates that award(s) will be made on or about June 26, 2017 (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		82 FR 26708