HUD to Offer Reverse Mortgage Pools for Sale

The Department of Housing and Urban Development will offer multiple reverse mortgage pools for sale in December, secured by roughly 1,150 single-family vacant properties with a loan balance of $230 million, according to an entry in the Federal Register. According to the entry, the sale will consist of due and payable reverse mortgages, held by HUD, in which all borrowers are deceased and no borrower is survived by a non-borrowing spouse.

The Bidders Information Package will be made available on November 14, the entry states, and is expected to be made available to all qualified bidders. In terms of the timeline for acceptance of an offer, bids for the HVLS 2019 will be accepted on the bid date of December 12. The agency expects that awards will be made on or about December 13.

HUD has made all of the information available via the federal register entry.

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Written by Elizabeth Ecker

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    • John,

      $230 million is barely a drop in the bucket when compared to an over $14 billion negative balance in the MMIF. If the homes sold for $100 million, the realized loss would not even be 1% of the MMIF total loss. No doubt, the losses have been fully recognized in the past if all of the related HECM were accounted for in the MMIF.

      Yet what percentage of the collateral was related to HECMs accounted for in the MMIF versus the G&SRIF?

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