Single Family Loan Sales (SFLS) | HUD.gov / U.S. Department of Housing and Urban Development (HUD)

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Single Family Loan Sales (SFLS)

The Office of Asset Sales conducts loan sales of single family defaulted mortgages previously insured by FHA through various sale structures to meet individual program goals. Single Family Loan Sales include various sale types, including joint-venture and whole loan sales for both forward and Home Equity Conversion Mortgages (HECM).

HUD-Held Vacant Loan Sales (HVLS)

HVLS are competitive auctions currently structured to promote sales first to mission-driven non-profit organizations and units of local government while increasing recoveries to FHA’s insurance funds over alternative dispositions of home equity conversion mortgages (HECMs). HVLS transactions are comprised of a portfolio of defaulted, formerly FHA-insured, single-family reverse mortgage loans owned by HUD where:

• The last surviving borrower is deceased;
• No borrower is survived by a non-borrowing spouse;
• The property securing the mortgage loan is vacant; and
• The heirs of the estate have not paid off the debt.

The HVLS loans were assigned to HUD from prior servicers when the loan balance reached 98% of Maximum Claim Amount (MCA). MCA is equal to the lesser of the loan’s appraised value or the maximum FHA lending limit at origination. Selling these defaulted mortgages through a competitive auction generates savings for FHA by avoiding holding, foreclosure, and sales expenses that would be incurred with a disposition through the REO conveyance program. Results from these sales can be found below.

Single Family Loan Sales (SFLS)

SFLS were established to provide an alternative disposition option to the conveyance process for defaulted FHA notes that does not require foreclosure on the borrower and the sale of the acquired property. Sales of these defaulted notes were structured to help facilitate sustainable homeownership while reducing losses for FHA’s insurance funds.

Results from these sales can be found below.

Single Family Joint Venture Sales (SFJV)

SFJV sales were conducted from 2002-2005, under a pilot program named the Accelerated Claims Disposition (ACD) Demonstration. The ACD sales provided homeowners who had defaulted mortgages in the sale with a greater range of options to remain in their homes. The sales were structured to accelerate the claims process to acquire defaulted mortgages, thereby reducing conveyance claims and its portfolio of foreclosed homes. Results from these sales can be found below.