October 12, 2004
HUD CONDUCTS ITS THIRD SUCCESSFUL LOAN SALE IN SIX MONTHS
WASHINGTON - The Federal Housing Administration's Asset Sales Program has completed Multifamily and Healthcare Loan Sale 2004-2 (MHLS 2004-2). The sale took place on September 15, 2004 and generated proceeds of approximately $147 million or over 73% of the mortgages' unpaid principal balance.
"This was the second multifamily and healthcare loan sale conducted by HUD during fiscal year 2004,"" said Assistant Secretary for Housing-Federal Housing Commissioner John C. Weicher. "The results of MHLS 2004-2, the third successful mortgage loan sale conducted by HUD over the past six months, are consistent with FHA's goal to increase recoveries on HUD-held mortgage loans".
The sale drew bids from 17 different bidders, including global investment banking firms, financial services companies, regional savings banks, real estate operators, private investment funds, healthcare operators and individuals. The following bidders had winning bids on pools: Lone Star U.S. Acquisitions, Lenox Mortgage IV Limited Partnership, GF Asset Management LLC and Asset Solutions Group.
The sale, which closed on September 22, 2004, consisted of 37 first, second and third lien mortgage loans secured by multifamily apartment properties, assisted living facilities and nursing homes located throughout the United States, totaling approximately $200 million in unpaid principal balance.
The pools consisted of performing, sub-performing and non-performing mortgage loans secured by properties located in 19 different states and ranged in size from 1 to 15 loans. Twenty-five loans were secured by multifamily properties. Twelve loans were secured by assisted living and nursing home facilities.
Bidders were permitted to submit bids on any of the mortgage loan pools. In addition, mortgagors of loans in the sale portfolio that were not in default under any HUD mortgage loan or HUD business agreements were permitted to submit individual bids on their mortgage loans. No mortgagors submitted bids on their mortgage loans.
The Office of Housing plans to conduct two multifamily mortgage loan sales in fiscal year 2005. The next multifamily mortgage loan sale is tentatively scheduled in March 2005.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.