January 17, 2006
HUD CONDUCTS THIRD MULTIFAMILY AND HEALTHCARE LOAN SALE OF 2005 AND SAVES $180 MILLION
WASHINGTON - The Federal Housing Administration's Asset Sales Program has completed Multifamily and Healthcare Loan Sale 2005-3 (MHLS 2005-3) its third multifamily and healthcare sale in calendar year 2005 and first sale of fiscal year 2006. The sale took place on December 13, 2005 and generated proceeds of approximately $133 million or approximately 66% of the mortgages' unpaid principal balance. The sale generated savings of nearly of $37 million and savings totaled nearly $180 million from the three multifamily and healthcare loan sales conducted in 2005.
"This recent sale is another example of HUD's success in disposing of delinquent mortgage loan assets and increasing recoveries," said Assistant Secretary for Housing-Federal Housing Commissioner Brian Montgomery. ?A modified sales structure attracted new bidders including smaller investors resulting in $37 million in savings from this sale and $180 million in savings for the year."
Bids were received from 36 different bidders, including individuals, small businesses, healthcare operators, real estate opportunity funds, private investment funds, global investment banking firms, financial services companies and regional real estate operators. A unique aspect to this particular sale was that bidders were permitted to submit bids on individual loans within pools as well as on pools of loans. Twenty-five loans were awarded on an individual loan basis and the remaining six loans were awarded to a pool bidder. The following thirteen bidders were awarded mortgage loans: PAMI Midlantic, LLC, Lone Star US Acquisitions, PNL MFR, L.P., Lenox Mortgage VI, LLC, AXS Funding, Lincolnshire Associates II, Ltd, Mortgage Investment Trust Corp, DBP Capital, LLC, First Southern National Bank, General Electric Credit Equities, Inc., TI-HUD Investments I LLC, Petersen Companies and Capital Source Finance, LLC.
The sale consisted of 31 first lien mortgage loans and one unsecured loan totaling nearly approximately $200 million in unpaid principal balance secured by multifamily apartment properties, a mobile home park, assisted living facilities and nursing homes located throughout the United States.
The pools consisted of performing, sub-performing and non-performing mortgage loans secured by mortgage liens on properties located in 13 different states. Pool sizes ranged from 1 to 7 loans per pool. Twenty-five loans were secured by multifamily properties; four loans were secured by assisted living and nursing home facilities, one loan was secured by a mobile home park and one loan was unsecured.
The Office of Housing plans on conducting 2-3 multifamily and healthcare mortgage loan sales each year with details posted on the HUD asset sales website.
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.