[Federal Register Volume 76, Number 36 (Wednesday, February 23, 2011)]
[Notices]
[Pages 10062-10063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4029]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5502-N-01]
Notice of Single Family Loan Sales (SFLS 2011-1)
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice of sales of mortgage loans.
-----------------------------------------------------------------------
SUMMARY: This notice announces HUD's intention to sell certain
unsubsidized single family mortgage loans, without Federal Housing
Administration (FHA) mortgage insurance, in a series of competitive,
sealed bid sales, commencing with the first sale offering (SFLS 2011-
1). This notice also generally describes the bidding process for the
sale and certain persons who are ineligible to bid. The sales are
scheduled for March 9, June 22 and September 14, 2011.
DATES: For the first sale action, the Bidder's Information Package
(BIP) was made available to qualified bidders on February 9, 2011. Bids
for the loans must be submitted on the bid date, which is currently
scheduled for March 9, 2011. HUD anticipates that award(s) will be made
on or about March 10, 2011.
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/sfloansales. 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.
SUPPLEMENTARY INFORMATION: HUD announces its intention to sell in SFLS
2011-1 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 Bidding Process
The BIP will describe in detail the procedure for bidding in SFLS
2011-1. The BIP will also include 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, 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. For the first sale action,
closings are expected to take place on March 30, 2011 and May 5, 2011.
These are the essential terms of sale. The CAA Agreement, which
will be included in the BIP, will contain 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 will describe 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 2011-1 at
any time prior to the award date. HUD also reserves the right to reject
any and all bids, in whole or in part, without
[[Page 10063]]
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, 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 Act.
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. The following individuals and entities are
ineligible to bid on any of the Mortgage Loans included in SFLS 2011-1:
(1) An 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) An 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 2 of the Code of Federal
Regulations, Part 2424;
(3) An individual or entity that has been 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.
(4) An individual or entity that has been 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;
(5) A 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 the Sales;
(6) A individual or entity that uses the services, directly or
indirectly, of any person or entity ineligible under subparagraphs 1
through 3i above to assist in preparing any of its bids on the Mortgage
Loans;
(7) A 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 the Sales;
(8) A 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
(9) A entity or individual that is: (a) Any affiliate or principal
of any entity or individual described in the preceding sentence
(paragraph 8); (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 paragraph 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 2011-1, 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 2011-1, 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 2011-1 and does not establish HUD's
policy for the sale of other mortgage loans.
Dated: February 17, 2011.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2011-4029 Filed 2-22-11; 8:45 am]
BILLING CODE 4210-67-P