The U.S. Department of Housing and Urban Development (HUD), announced the latest non-performing, residential loan sale in its Distressed Asset Stabilization Program (DASP) in a recent press release.
The release states that on September 14th, 2016, HUD will offer 20 non-performing residential mortgage pools consisting of 10,500 notes and an aggregate unpaid principal balance of $1.7 billion, approximately.
HUD also states that the sale will consist of 12 Neighborhood Stabilization Outcome (NSO) Pools, that consist of approximately $800 million of unpaid principal balance, as well as eight diversified national pools consisting of approximately $900 million of unpaid principal balance. The Department's Neighborhood Stabilization Outcome offerings will include five Non-Profit or Units of Local Government Only Pools.
The geographic market areas and approximate unpaid principal balance of the NSO pools are first the Neighborhood Stabilization Outcome Regions. These include Mid Atlantic U.S. at $50,000,000; States of IL IN and OH at $60,000,000; States of NY and NJ with two pools around $125,000,000; North Central U.S. at $145,000,000; Southern U.S. $110,000,000; and Western U.S. at $45,000,000.
Additionally, the Neighborhood Stabilization Outcome Non Profit Regions include Baltimore Metropolitan Area at $15,000,000; Chicago Metropolitan Area at $25,000,000; New York City at $65,000,000; New York State at $35,000,000; and finally a Non-Profit Set-Aside Pool whose amount has yet to be determined.
As noted above, this sale includes the first ever National Non-Profit Set-Aside Pool. HUD states that this option will allow non-profits or units of local government to submit loan level bids on a minimum of 25 loans and a maximum of five percent of the pool's total number of loans, in a designated National Pool. In addition, the release states that HUD will award one sub-pool to the non-profit whose bid delivers the greatest return to HUD. Likewise, the release also states that this sub-pool will carry all the same requirements that exist in traditional NSO pools.
The release also states that entities interested in participating can contact the Asset Sales Office's Single Family Transaction Specialist, Verdi Consulting.