The Department of Housing and Urban Development (HUD) has publicly announced its intention to sell multiple pools of approximately 1,500 reverse mortgage loans that are secured by properties with loan values in the hundreds of millions of dollars. This is according to a notice posted in the Federal Register last week.
“This notice announces HUD’s intention to competitively offer multiple residential reverse mortgage pools consisting of approximately 1,500 reverse mortgage notes secured by properties with a loan balance of approximately $330 million,” the notice reads. “The sale will consist of due and payable Secretary-held reverse mortgage loans.”
The mortgage loans up for sale consist of first liens that are secured by single family, vacant residential properties in which all of the borrowers are no longer living, and no borrower is survived by a non-borrowing spouse, the notice says. The sale is scheduled to be held on July 24, and prospective bidders must complete and submit both a confidentiality agreement and a qualification statement acceptable to HUD.
This is the third sale of this type conducted by HUD. The second one took place in November 2018, secured by roughly 1,150 single-family vacant properties with a loan balance of $230 million, while the first sale took place in March 2018 secured by 650 notes with a loan balance of roughly $136 million.
Read the notice of the sale in the Federal Register.