[Federal Register Volume 75, Number 180 (Friday, September 17, 2010)]
[Notices]
[Pages 57052-57053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-23182]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5442-N-01]
Notice of Single Family Loan Sale (SFLS 2010)
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice of sale of mortgage loans.
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SUMMARY: This notice announces HUD's intention to sell certain
unsubsidized single family mortgage loans, without Federal Housing
Administration (FHA) mortgage insurance, in a competitive, sealed bid
sale (SFLS 2010). This notice also generally describes the bidding
process for the sale and certain persons who are ineligible to bid.
DATES: The Bidder's Information Package (BIP) was made available to
qualified bidders on August 31, 2010. Bids for the loans must be
submitted on the bid date, which is currently scheduled for September
22, 2010. HUD anticipates that award(s) will be made on or about
September 22, 2010 (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 will be available on the HUD Web site at http://www.hud.gov/offices/hsg/comp/asset/sfam/sfls.cfm.
Please mail and fax executed documents to HUD's Asset Sales Office:
Asset Sales Office, United States Department of Housing and Urban
Development, 451 7th Street, SW., Room 3136, Washington, DC 20410,
Attention: Single Family Sale Coordinator, Fax: 202-708-2771.
FOR FURTHER INFORMATION CONTACT: John Lucey, Deputy 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.
[[Page 57053]]
SUPPLEMENTARY INFORMATION: HUD announces its intention to sell in SFLS
2010 certain unsubsidized non-performing mortgage loans (Mortgage
Loans) secured by single family properties located throughout the
United States. A listing of the Mortgage Loans will be included in the
due diligence materials made available to 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 Mortgage Loans may be stratified for bidding purposes into
several mortgage loan pools based on the geographic location of the
underlying properties. Qualified bidders may submit bids on one or more
pools of Mortgage Loans.
The Bidding Process
The BIP describes in detail the procedure for bidding in SFLS 2010.
The BIP also includes a standardized non-negotiable Conveyance,
Assignment and Assumption Agreement (CAA Agreement). Bidders will be
required to submit a deposit with their bid. Deposits are calculated
based upon each bidder's aggregate bid price.
HUD will evaluate the bids submitted and determine the successful
bid or bids, in terms of the best value to HUD, in its sole and
absolute discretion. If a bidder is successful, the bidder's deposit
will be non-refundable and will be applied toward the purchase price.
Deposits will be returned to unsuccessful bidders. Closings are
expected to take place on September 22, 2010 and October 27, 2010.
This notice provides a summary of some of the essential terms of
sale. The CAA Agreement, which is included in the BIP, contains
additional terms and details. To ensure a competitive bidding process,
the terms of the bidding process and the CAA Agreement are not subject
to negotiation.
Due Diligence Review
The BIP describes how 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 SFLS 2010 at
any time prior to the Award Date. HUD also reserves the right to reject
any and all bids, in whole or in part, without prejudice to HUD's right
to include any Mortgage Loans in a later sale. Mortgage Loans will not
be withdrawn after the Award Date except as is specifically provided in
the CAA Agreement.
This is a sale of unsubsidized mortgage loans, which are to be
assigned to HUD pursuant to section 204(a)(1)(A) of the National
Housing Act (the NHA), amended under Title VI of the Departments of
Veterans Affairs and Housing and Urban Development and Independent
Agencies Appropriations Act, 1999. The sale of the loans is pursuant to
section 204(g) of the NHA.
Mortgage Loan Sale Procedure
HUD selected a competitive sale as the method to sell the Mortgage
Loans. This method of sale optimizes HUD's return on the sale of these
Mortgage 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 Eligibility
In order to bid in the sale, a prospective bidder must complete,
execute and submit both a Confidentiality Agreement and a Qualification
Statement acceptable to HUD. After receiving the BIP, bidders will also
complete a Bid Terms Acknowledgement Form which will provide them
access to HUD online bidding site. The following individuals and
entities are ineligible to bid on any of the Mortgage Loans included in
SFLS 2010:
(1) Any employee of HUD, 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;
(2) any individual or entity that is debarred, suspended, or
excluded from doing business with HUD pursuant to Title 24 of the Code
of Federal Regulations, Part 24, and Title 25 of the Code of Federal
Regulations, Part 2424;
(3) any contractor, subcontractor and/or consultant or advisor
(including any agent, employee, partner, director, principal or
affiliate of any of the foregoing) who performed services for or on
behalf of HUD in connection with SFLS 2010;
(4) any individual or entity that uses the services, directly or
indirectly, of any person or entity ineligible under subparagraphs 1
through 3 above to assist in preparing any of its bids on the Mortgage
Loans;
(5) any individual or entity which employs or uses the services of
an employee of HUD (other than in such employee's official capacity)
who is involved in SFLS 2010;
(6) any entity or individual that serviced or held any Mortgage
Loan at any time during the 2-year period prior to the bid is
ineligible to bid on such Mortgage Loan or on the pool containing such
Mortgage Loan, and
(7) also ineligible to bid on any Mortgage Loan are: (a) Any
affiliate or principal of any entity or individual described in the
preceding sentence (subparagraph 6); (b) any employee or subcontractor
of such entity or individual during that 2-year period; or (c) any
entity or individual that employs or uses the services of any other
entity or individual described in this subparagraph in preparing its
bid on such Mortgage Loan.
Freedom of Information Act Requests
HUD reserves the right, in its sole and absolute discretion, to
disclose information regarding SFLS 2010, including, but not limited
to, the identity of any successful 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 2010, HUD will have
the right to 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 SFLS 2010 and does not establish HUD's
policy for the sale of other mortgage loans.
Dated: September 10, 2010.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2010-23182 Filed 9-16-10; 8:45 am]
BILLING CODE 4210-67-P