• Ocwen4.19+0.07 +1.70%
  • Zillow32.42+0.45 +1.41%
  • Trulia47+0 +0%
  • NationStar15.14-0.19 -1.24%
  • CoreLogic42.10+0.29 +0.69%
  • RE/MAX42.75+0.00 +0.00%
  • Fannie Mae1.69+0.00 +0.00%
  • Freddie Mac1.60+0.00 +0.00%
  • Wells Fargo46.23-0.18 -0.39%
  • CitiMortgage49.56-0.37 -0.74%
  • Bank of America16.68-0.23 -1.36%
  • Fidelity National Financial35.51-0.14 -0.39%
  • First American38.58+0.24 +0.63%
  • AUDUSD=X0.7594+0.0004 +0.0474%
  • USDJPY=X104.6940-0.5440 -0.5169%
  • WP Stock Ticker
Home | Daily Dose | Firm to Sell $2.3 Billion in Nonperforming Loans for HUD
Print This Post Print This Post

Firm to Sell $2.3 Billion in Nonperforming Loans for HUD

Nonperforming Loans HUDOnline marketplace exchange DebtX has announced its intention to sell 15,000 nonperforming residential loans for the U.S. Department of Housing and Urban Development (HUD) as part of the agency's Single-Family Loan Sale (SFLS) program.

The unpaid principal balance of the loans amounts to about $2.3 billion and the loans will be sold in eight national pools ranging from $94.5 million to $804.5 million. The bid is scheduled for September 30.

This will be the sixth multi-billion dollar sale that Boston-based DebtX has handled for HUD since September 2012. DebtX has offered more than 100,000 loans for HUD since that time.

In June, DebtX sold 23,000 loans with an unpaid principal balance of $3.9 billion on behalf of Seba Professional Services for HUD, marking the fifth time DebtX sold a multi-billion dollar portfolio for the government agency. The June sale was the Federal Housing Administration's (FHA) first note sale under the Distressed Asset Stabilization Program of 2014, which is part of "a broader effort to reduce losses and increase recoveries to the Mutual Mortgage Insurance Fund," according to the FHA.

The SFLS program is "intended to reduce claim costs, increase the availability of affordable housing, minimize holding costs for multifamily properties and maximize recoveries to the FHA insurance fund," according to HUD.

HUD announced last week that it has sold about 91,000 loans totaling approximately $15.8 billion as part of the SFLS program since 2010 when the program began. All but about 2,000 of those have been sold in the last two years. Through the sale of the nonperforming loans, about 6,400 foreclosures were prevented as of 2013-2, according to HUD.


About Author: Brian Honea

Profile photo of Brian Honea
Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.

Leave a Reply

Scroll To Top