Federal Register #FR-6568-N-06

HUD Competitive Sale of 4,200 Vacant Reverse Mortgage Loans (HECM)

HUD is offering a competitive sale of approximately 4,200 reverse mortgage loans (HECM) secured by vacant single-family residential properties, with a total loan balance of about $1.3 billion. - Government Buyer: - Department of Housing and Urban Development (HUD) - Office of the Assistant Secretary for Housing-Federal Housing Commissioner - Office of Asset Sales - Products/Services Requested: - Sale of Secretary-held home equity conversion mortgages (HECM) - Approximately 4,200 loans, all due and payable - Loans secured by vacant single-family properties - Total loan balance: ~$1.3 billion - Loans sold without FHA insurance and with servicing released - Unique/Notable Requirements: - All borrowers are deceased; no surviving non-borrowing spouse - Bidders must meet strict eligibility requirements - Entities debarred or suspended from federal business, or with prior involvement in servicing these loans, are restricted from bidding - Sale aims to reduce risk to the Mutual Mortgage Insurance Fund and efficiently dispose of defaulted assets - No physical products or traditional services are being procured; the sale is for mortgage assets - No OEMs or traditional vendors are involved, as this is an asset sale

Description

This notice announces HUD's intention to offer approximately 4,200 home equity conversion mortgages (HECM, or reverse mortgage loans) secured by vacant properties with a loan balance of approximately $1.3 billion, in a competitive sale. The sale consists of due and payable Secretary-held reverse mortgage loans secured by single-family, vacant residential properties where all borrowers are deceased and no borrower is survived by a non-borrowing spouse. The notice describes the bidding process, eligibility requirements for bidders, and the timeline for the sale, which will be held on October 27, 2026. HUD aims to reduce financial risk to the Mutual Mortgage Insurance Fund and promote efficient disposition of defaulted assets through this sale.

View original listing