[Federal Register Volume 60, Number 53 (Monday, March 20, 1995)]
[Notices]
[Pages 14774-14775]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6714]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Housing; Federal Housing
Commissioner
[Docket No. N-95-3904; FR-3891-N-01]
Sale of HUD-Held Multifamily Mortgages; Notice of Loan Sale
Policy
AGENCY: Office of the Assistant Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Notice of Loan Sale Policy for HUD-Held Multifamily Mortgages.
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SUMMARY: This notice sets forth the sale procedures and other
information relevant to the sale of HUD-held non-performing,
unsubsidized mortgage loans.
DATES: March 20, 1995.
FOR FURTHER INFORMATION CONTACT: William Richbourg, Office of the
Housing-FHA Comptroller, Room 5144, Department of Housing and Urban
Development, 451 Seventh Street SW., Washington, DC 20410; Telephone
(202) 401-0577. Hearing- or speech-impaired individuals may call (202)
708-4594 (TDD). These are not toll-free numbers.
SUPPLEMENTARY INFORMATION: On September 22, 1994, the Department of
Housing and Urban Development (``Department'') published a final rule
in the Federal Register (59 FR 48726) [[Page 14775]] containing
provisions set forth in 24 CFR 290.202 for selling nonperforming,
unsubsidized mortgage loans. The first auction of these mortgage loans
is scheduled for March 28, 1995 and involves the sale of mortgage loans
secured by properties located in the Southeastern United States
(``Southeast Auction''). The sale was announced by a notice published
in the Federal Register on January 13, 1995 (60 FR 3255).
This notice sets forth the sale procedures and other information
relevant to the sale scheduled for March 28, 1995. The following are
changes, modifications and/or amplifications to those sale procedures
previously published. Except as expressly set forth below, the
procedures set forth in the Federal Register on January 13, 1995 remain
effective.
Ineligible Bidders. The following individuals and entities (either
alone or in combination with others) are ineligible to bid on any one
or combination of the mortgage loans included in the Southeast Auction:
(1) Any employee of the Department;
(2) Any individual or entity that is debarred from doing business
with the Department pursuant to 24 CFR part 24;
(3) Any contractor, subcontractor and/or consultant (including any
agent of the foregoing) who performed services for, or on behalf of,
the Department in connection with the Southeast Auction;
(4) Any individual that was a principal and/or employee of any
entity or individual described in paragraph (3) above at any time
during which the entity or individual performed services for, or on
behalf of, the Department in connection with the Southeast Auction;
(5) Any entity or individual that served as a loan servicer or
performed other services for, or on behalf of the Department, with
respect to any of the mortgage loans included in the Southeast Auction
at any time during the two-year period prior to March 28, 1995; and
(6) Any individual that was a principal and/or employee of any
entity or individual described in paragraph (5) above at any time
during the two year period prior to March 28, 1995, except, however,
any entity or individual described in paragraphs (5) and (6) shall be
permitted (subject to the terms and conditions of any agreement the
entity or individual has previously entered into in connection with the
Southeast Auction and/or other agreements entered into with, or on
behalf of, the Department), to:
(i) Perform services as a consultant and/or advisor to any bidder
who is eligible to bid at the Southeast Auction, provided that such
services do not involve the use of any materials or information not
otherwise available to the general public that were produced or
developed for, or on behalf of, the Department; and
(ii) Bid on any of the mortgage loans included in the Southeast
Auction that were not serviced by such entity or individual described
in paragraphs (5) or (6) at any time during the two year period prior
to March 28, 1995.
Number of Bids. A bidder may bid on as many individual mortgage
loans as the bidder chooses. However, no bidder may bid on more than
ten (10) pools of mortgage loans (i.e., combinations of two or more
mortgage loans).
Timely Bids and Deposits. Each bidder assumes all risks of loss
relating to its failure to deliver, or cause to be delivered, on a
timely basis and in the manner specified by the Department, each bid
form, earnest money deposit and loan sale agreement required to be
submitted by the bidder.
Ties for High Bidder. In the event there is a tie for a high bid,
the Department, through its financial advisor, will contact the parties
with the tie bid and afford each of them an opportunity to offer a best
and final bid. The successful bidder will be the one with the highest
bid. If a tie continues after the best and final offers are submitted
or the bidders do not respond, or do not respond within the time period
established by the Department, the successful bidder will be determined
by lottery. Notwithstanding the above, the Department reserves the
right to withdraw any mortgage loan(s) subject to a tie bid.
Nonperforming Status of Mortgage Loans. Almost all of the mortgage
loans included in the Southeast Auction are nonperforming. However,
some of the mortgage loans may become performing on or before the date
that title to the mortgage loan(s) is transferred to the successful
bidder.
Dated: March 13, 1995.
Jeanne K. Engel,
General Deputy Assistant Secretary for Housing-Federal Housing
Commissioner.
[FR Doc. 95-6714 Filed 3-17-95; 8:45 am]
BILLING CODE 4210-27-P
