Notice of HUD-Held Multifamily and Healthcare Loan Sale (MHLS 2006-1), 32369-32371 [E6-8640]
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Federal Register / Vol. 71, No. 107 / Monday, June 5, 2006 / Notices
performance of FHA-insured mortgage
loans originated by the mortgagee. The
termination of a mortgagee’s Agreement
is separate and apart from any action
taken by HUD’s Mortgagee Review
Board under HUD’s regulations at 24
CFR part 25.
Cause: HUD’s regulations permit HUD
to terminate the Agreement with any
mortgagee having a default and claim
rate for loans endorsed within the
preceding 24 months that exceeds 200
percent of the default and claim rate
within the geographic area served by a
HUD field office, and also exceeds the
national default and claim rate. For the
26th review period, HUD is terminating
the Agreement of mortgagees whose
default and claim rate exceeds both the
national rate and 200 percent of the
field office rate.
Effect: Termination of the Agreement
precludes that branch(s) of the
mortgagee from originating FHA-insured
single family mortgages within the area
of the HUD field office(s) listed in this
notice. Mortgagees authorized to
purchase, hold, or service FHA insured
mortgages may continue to do so.
Loans that closed or were approved
before the termination became effective
may be submitted for insurance
endorsement. Approved loans are (1)
those already underwritten and
approved by a Direct Endorsement (DE)
underwriter employed by an
unconditionally approved DE lender
and (2) cases covered by a firm
commitment issued by HUD. Cases at
earlier stages of processing cannot be
submitted for insurance by the
terminated branch; however, they may
be transferred for completion of
processing and underwriting to another
mortgagee or branch authorized to
originate FHA insured mortgages in that
area. Mortgagees are obligated to
continue to pay existing insurance
premiums and meet all other obligations
associated with insured mortgages.
A terminated mortgagee may apply for
a new Origination Approval Agreement
if the mortgagee continues to be an
approved mortgagee meeting the
requirements of 24 CFR 202.5, 202.6,
202.7, 202.8 or 202.10 and 202.12, if
there has been no Origination Approval
Agreement for at least six months, and
if the Secretary determines that the
underlying causes for termination have
been remedied. To enable the Secretary
to ascertain whether the underlying
causes for termination have been
remedied, a mortgagee applying for a
new Origination Approval Agreement
must obtain an independent review of
the terminated office’s operations as
well as its mortgage production,
specifically including the FHA-insured
mortgages cited in its termination
notice. This independent analysis shall
identify the underlying cause for the
mortgagee’s high default and claim rate.
The review must be conducted and
issued by an independent Certified
Public Accountant (CPA) qualified to
perform audits under Government
Auditing Standards as provided by the
General Accounting Office. The
mortgagee must also submit a written
corrective action plan to address each of
the issues identified in the CPA’s report,
along with evidence that the plan has
been implemented. The application for
a new Agreement should be in the form
of a letter, accompanied by the CPA’s
report and corrective action plan. The
request should be sent to the Director,
Office of Lender Activities and Program
Compliance, 451 Seventh Street, SW.,
Room B133–P3214, Washington, DC
20410–8000 or by courier to 490
L’Enfant Plaza, East, SW., Suite 3214,
Washington, DC 20024–8000.
Action: The following mortgagees
have had their Agreements terminated
by HUD:
Mortgagee name
Mortgagee branch address
HUD office
jurisdictions
Allied Home MTG Capital
Corp.
Creative Mortgage Inc. .....
Everett Financial Inc. ........
International Lending Solutions Inc.
WR Starkey Mortgage LLP
141 J Technology Dr., Garner, NC 27529 .................
Greensboro .........
3/30/06
Atlanta.
5200 DTE Pkwy, Ste. 400, Englewood, CO 80111 ...
17290 Preston RD Ste. 300, Dallas, TX 75252 .........
6041 S. Syracuse Way Ste. 200, Greenwood Village, CO 80111.
700 Highlander Blvd., Arlington, TX 70615 ................
Denver ................
Dallas ..................
Denver ................
3/30/06
3/30/06
2/19/06
Denver.
Denver.
Denver.
Fort Worth ...........
3/30/06
Denver.
Dated: May 25, 2006.
Brian D. Montgomery,
Assistant Secretary for Housing-Federal
Housing Commissioner.
[FR Doc. E6–8638 Filed 6–2–06; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–4639–N–10]
Notice of HUD-Held Multifamily and
Healthcare Loan Sale (MHLS 2006–1)
Office of the Assistant
Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Notice of sale of mortgage loans.
cprice-sewell on PROD1PC66 with NOTICES
AGENCY:
SUMMARY: This notice announces HUD’s
intention to sell certain unsubsidized
multifamily and healthcare mortgage
loans, without Federal Housing
VerDate Aug<31>2005
18:00 Jun 02, 2006
Jkt 208001
Administration (FHA) insurance, in a
competitive, sealed bid sale (MHLS
2006–1). This notice also describes
generally the bidding process for the
sale and certain persons who are
ineligible to bid.
DATES: The Bidder’s Information
Package (BIP) will be made available to
qualified bidders on May 17, 2006. Bids
for the loans must be submitted on the
bid date, which is currently scheduled
for June 21, 2006. HUD anticipates that
awards will be made on or before June
22, 2006. Closings are expected to take
place on June 28, 2006.
ADDRESSES: To become a qualified
bidder and receive the BIP, prospective
bidders must complete, execute, and
submit a Confidentiality Agreement and
a Qualification Statement acceptable to
HUD. Both documents will be available
on the HUD Web site at https://
www.hud.gov/offices/hsg/comp/asset/
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
Termination
effective date
Homeownership
centers
mfam/mhls.cfm. The executed
documents must be mailed and faxed to
SSD Inc., HUD’s Transaction Specialist
for the sale, at 1400 K Street, NW., Suite
950, Attention: MHLS 2006–1 Sale
Coordinator, Fax: (202) 464–3047.
FOR FURTHER INFORMATION CONTACT: John
Lucey, Acting Deputy Director, Asset
Sales Office, Department of Housing and
Urban Development, 451 Seventh Street,
SW., Room 3136, Washington, DC
20410–8000; telephone (202) 708–2625,
extension 3927 or Gregory Bolton,
Senior Attorney, Office of Insured
Housing, Multifamily Division, Room
9230; telephone (202) 708–0614,
extension 5245. Hearing- or speechimpaired individuals may call (202)
708–4594 (TTY). These are not toll-free
numbers.
SUPPLEMENTARY INFORMATION: HUD
announces its intention to sell in MHLS
2006–1 certain unsubsidized mortgage
E:\FR\FM\05JNN1.SGM
05JNN1
32370
Federal Register / Vol. 71, No. 107 / Monday, June 5, 2006 / Notices
loans (Mortgage Loans) secured by
multifamily and healthcare properties
located throughout the United States.
The Mortgage Loans are comprised
primarily of non-performing mortgage
loans. A final listing of the Mortgage
Loans will be included in the BIP. The
Mortgage Loans will be sold without
FHA insurance and with servicing
released. HUD will offer qualified
bidders an opportunity to bid
competitively on the Mortgage Loans.
The Mortgage Loans will be stratified
for bidding purposes into several
mortgage loan pools. Each pool will
contain Mortgage Loans that generally
have similar performance, property
type, geographic location, lien position
and other characteristics. Qualified
bidders may submit bids on one or more
pools of Mortgage Loans or may bid on
individual loans. A mortgagor who is a
qualified bidder may submit an
individual bid on its own Mortgage
Loan. Interested Mortgagors should
review the Qualification Statement to
determine whether they may also be
eligible to qualify to submit bids on one
or more pools of Mortgage Loans or on
individual loans in MHLS 2006–1.
The Bidding Process
The BIP will describe in detail the
procedure for bidding in MHLS 2006–1.
The BIP will also include a standardized
nonnegotiable loan sale agreement
(Loan Sale Agreement).
As part of its bid, each bidder must
submit a deposit equal to the greater of
$100,000 or 10% of the bid price. HUD
will evaluate the bids submitted and
determine the successful bids in its sole
and absolute discretion. If a bidder is
successful, the bidder’s deposit will be
non-refundable and will be applied
toward the purchase price. Deposits will
be returned to unsuccessful bidders.
Closings are scheduled to occur on June
28, 2006.
These are the essential terms of sale.
The Loan Sale Agreement, which will
be included in the BIP, will contain
additional terms and details. To ensure
a competitive bidding process, the terms
of the bidding process and the Loan Sale
Agreement are not subject to
negotiation.
cprice-sewell on PROD1PC66 with NOTICES
Due Diligence Review
The BIP will describe the due
diligence process for reviewing loan
files in MHLS 2006–1. Qualified bidders
will be able to access loan information
remotely via a high-speed Internet
connection. Further information on
performing due diligence review of the
Mortgage Loans will be provided in the
BIP.
VerDate Aug<31>2005
15:33 Jun 02, 2006
Jkt 208001
Mortgage Loan Sale Policy
HUD reserves the right to add
Mortgage Loans to or delete Mortgage
Loans from MHLS 2006–1 at any time
prior to the Award Date. HUD also
reserves the right to reject any and all
bids, in whole or in part, without
prejudice to HUD’s right to include any
Mortgage Loans in a later sale. Mortgage
Loans will not be withdrawn after the
Award Date except as is specifically
provided in the Loan Sale Agreement.
This is a sale of unsubsidized
mortgage loans. Pursuant to the
Multifamily Mortgage Sale Regulations,
24 CFR 290.30 et seq., the Mortgage
Loans will be sold without FHA
insurance. Consistent with HUD’s
policy as set forth in 24 CFR 290.35,
HUD is unaware of any Mortgage Loan
that is delinquent and secures a project
(1) for which foreclosure appears
unavoidable, and (2) in which very-low
income tenants reside who are not
receiving housing assistance and who
would be likely to pay rent in excess of
30 percent of their adjusted monthly
income if HUD sold the Mortgage Loan.
If HUD determines that any Mortgage
Loans meet these criteria, they will be
removed from the sale.
Mortgage Loan Sale Procedure
HUD selected a competitive sale as
the method to sell the Mortgage Loans
primarily to satisfy the Mortgage Sale
Regulations. This method of sale
optimizes HUD’s return on the sale of
these Mortgage Loans, affords the
greatest opportunity for all qualified
bidders to bid on the Mortgage Loans,
and provides the quickest and most
efficient vehicle for HUD to dispose of
the Mortgage Loans.
Bidder Eligibility
In order to bid in the sale, a
prospective bidder must complete,
execute and submit both a
Confidentiality Agreement and a
Qualification Statement acceptable to
HUD. The following individuals and
entities are ineligible to bid on any of
the Mortgage Loans included in MHLS
2006–1:
(1) Any employee of HUD, a member
of such employee’s household, or an
entity owned or controlled by any such
employee or member of such an
employee’s household;
(2) Any individual or entity that is
debarred, suspended, or excluded from
doing business with HUD pursuant to
Title 24 of the Code of Federal
Regulations, part 24;
(3) Any contractor, subcontractor and/
or consultant or advisor (including any
agent, employee, partner, director,
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Frm 00070
Fmt 4703
Sfmt 4703
principal or affiliate of any of the
foregoing) who performed services for or
on behalf of HUD in connection with
MHLS 2006–1;
(4) Any individual who was a
principal, partner, director, agent or
employee of any entity or individual
described in subparagraph 3 above, at
any time during which the entity or
individual performed services for or on
behalf of HUD in connection with
MHLS 2006–1;
(5) Any individual or entity that uses
the services, directly or indirectly, of
any person or entity ineligible under
subparagraphs 1 through 4 above to
assist in preparing any of its bids on the
Mortgage Loans;
(6) Any individual or entity which
employs or uses the services of an
employee of HUD (other than in such
employee’s official capacity) who is
involved in MHLS 2006–1;
(7) Any mortgagor (or affiliate of a
mortgagor) that failed to submit to HUD
on or before March 31, 2006, audited
financial statements for 1999 through
2005 for a project securing a Mortgage
Loan; and
(8) Any individual or entity and any
Related Party (as such term is defined in
the Qualification Statement) of such
individual or entity that is a mortgagor
in any of HUD’s multifamily housing
programs and that is in default under
such mortgage loan or is in violation of
any regulatory or business agreements
with HUD, unless such default or
violation is cured on or before June 14,
2006.
In addition, any entity or individual
that serviced or held any Mortgage Loan
at any time during the 2-year period
prior to May 31, 2006, is ineligible to
bid on such Mortgage Loan or on the
pool containing such Mortgage Loan,
but may bid on loan pools that do not
contain Mortgage Loans that they have
serviced or held at any time during the
2-year period prior to May 31, 2006.
Also ineligible to bid on any Mortgage
Loan are: (a) Any affiliate or principal
of any entity or individual described in
the preceding sentence; (b) any
employee or subcontractor of such
entity or individual during that 2-year
period; or (c) any entity or individual
that employs or uses the services of any
other entity or individual described in
this paragraph in preparing its bid on
such Mortgage Loan.
Prospective bidders should carefully
review the Qualification Statement to
determine whether they are eligible to
submit bids on the Mortgage Loans in
MHLS 2006–1.
E:\FR\FM\05JNN1.SGM
05JNN1
Federal Register / Vol. 71, No. 107 / Monday, June 5, 2006 / Notices
Freedom of Information Act Requests
HUD reserves the right, in its sole and
absolute discretion, to disclose
information regarding MHLS 2006–1,
including, but not limited to, the
identity of any successful bidder and its
bid price or bid percentage for any pool
of loans or individual loan, upon the
closing of the sale of all the Mortgage
Loans. Even if HUD elects not to
publicly disclose any information
relating to MHLS 2006–1, HUD will
have the right to disclose any
information that HUD is obligated to
disclose pursuant to the Freedom of
Information Act and all regulations
promulgated thereunder.
Scope of Notice
This notice applies to MHLS 2006–1
and does not establish HUD’s policy for
the sale of other mortgage loans.
Dated: May 25, 2006.
Brian D. Montgomery,
Assistant Secretary for Housing-Federal
Housing Commissioner.
[FR Doc. E6–8640 Filed 6–2–06; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[CA 660–06–5101–ER]
Proposed Wind Energy Project
AGENCY:
Bureau of Land Management,
cprice-sewell on PROD1PC66 with NOTICES
Interior.
ACTION: Notice of intent to prepare a
joint Environmental Impact Statement
(EIS) and Environmental Impact Report
(EIR).
SUMMARY: In compliance with the
National Environmental Policy Act
(NEPA) of 1969, 40 CFR 1508.22, and
the California Environmental Quality
Act (CEQA), notice is herby given that
the Bureau of Land Management (BLM)
and the City of Palm Springs intend to
prepare a joint Environmental Impact
Statement (EIS) and Environmental
Impact Report (EIR) for a proposed wind
energy facility on public and private
land in the Coachella Valley. The EIS/
EIR will describe and analyze
alternatives for a proposed wind energy
generating facility on approximately 600
acres in the Whitewater floodplain in
the Coachella Valley, Riverside County,
California.
DATES: This notice initiates the public
scoping process. Comments on issues
may be submitted in writing to the
address listed below. Additionally, a
public meeting will be held to
encourage public input. The public
VerDate Aug<31>2005
15:33 Jun 02, 2006
Jkt 208001
meeting will be announced through the
local news media, newspapers, and the
BLM Web site (https://www.ca.blm.gov/
palmsprings) at least 15 days prior to
the event. Additional opportunities for
public participation will be provided
upon publication of the draft EIS/EIR.
ADDRESSES: Comments should be sent to
Greg Hill, Wind Energy Project, Bureau
of Land Management, 690 W. Garnet
Ave., P.O. Box 581260, North Palm
Springs, CA 92258 or by fax at (760)
251–4899, or by e-mail at
gchill@ca.blm.gov. Documents pertinent
to this proposal, including comments
with the names and addresses of
respondents, will be available for public
review at the BLM Palm Springs-South
Coast Field Office located at 690 W.
Garnet Avenue, North Palm Springs,
California, during regular business
hours of 7:45 a.m. to 4:30 p.m., Monday
through Friday, except holidays, and
may be published as part of the EIS/EIR.
Individual respondents may request
confidentiality. If you wish to withhold
your name or street address from public
review or from disclosure under the
Freedom of Information Act, you must
state this prominently at the beginning
of your written comment. Such requests
will be honored to the extent allowed by
law. BLM will not consider anonymous
comments. All submissions from
organizations and businesses, and from
individuals identifying themselves as
representatives or officials of
organizations or businesses, will be
available for public inspection in their
entirety.
FOR FURTHER INFORMATION CONTACT: For
further information and/or to have your
name added to our mailing list, contact
Greg Hill, Wind Energy Project, Bureau
of Land Management, Palm SpringsSouth Coast Field Office, (760) 251–
4840, or by e-mail at gchill@ca.blm.gov.
SUPPLEMENTARY INFORMATION: Mountain
View Power Partners IV, LLC has
applied for a right of way on public
lands and a conditional use permit on
private lands to construct a wind energy
generating facility in the Coachella
Valley, in Riverside County. The project
site is west of Indian Avenue and is
within the corporate boundary of the
City of Palm Springs and within the
planning area for the draft Coachella
Valley Multiple Species Habitat
Conservation Plan. Operations are
expected to last approximately 30 years.
The proposed project would install a
total of approximately 42 to 50 wind
turbines on public and private lands,
with a total generating capacity of
approximately 49 megawatts. Related
structures would include access roads, a
34.5kV powerline and an electrical
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Fmt 4703
Sfmt 4703
32371
substation. If approved, the wind energy
generating facility on public lands
would be authorized in accordance with
Title V of the Federal Land Policy and
Management Act of 1976 (U.S.C.) and
the Federal regulations at 43 CFR 2800.
The proposed project would take
approximately 7 months to construct.
Dated: January 10, 2006.
Gail Acheson,
Field Manager, Palm Springs-South Coast
Field Office.
[FR Doc. E6–8681 Filed 6–2–06; 8:45 am]
BILLING CODE 4310–40–P
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[NM–952–06–1420–BJ]
Notice of Filing of Plats of Survey; New
Mexico
AGENCY:
Bureau of Land Management,
Interior.
ACTION:
Notice.
SUMMARY: The plats of survey described
below are scheduled to be officially
filed in the New Mexico State Office,
Bureau of Land Management, Santa Fe,
New Mexico (30) thirty calendar days
from the date of this publication.
SUPPLEMENTARY INFORMATION:
New Mexico Principal Meridian, New
Mexico:
The plat representing the dependent
resurvey and survey and subdivision of
sections in township 24 North, Ranges 9 East,
accepted March 30, 2006, for Group 1032
New Mexico.
The supplemental plat, representing the
subdivision of sections for Township 20
North, Range 9 & 10 East, accepted March 30,
2006, for New Mexico.
The plat representing the dependent
resurvey and subdivision of sections for
Township 22 South, Range 2 East, accepted
March 29, 2006 for Group 937 New Mexico.
The plat representing the dependent
resurvey and survey for Township 16 North,
Range 17 East, accepted January 12, 2006 for
Group 1030 New Mexico.
The plat representing the dependent
resurvey and subdivision of sections for
Township 15 North, Range 1 East, accepted
December 29, 2005 for Group 1031 New
Mexico.
The plat representing the dependent
resurvey and subdivision of sections for
Township 26 North, Range 6 East, accepted
December 12, 2005 for Group 943 New
Mexico.
The plat, in two sheets, representing the
dependent resurvey and survey for Township
13 North, Range 12 West, accepted May 9,
2006, for Group 1013 New Mexico.
E:\FR\FM\05JNN1.SGM
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]]>Agencies
[Federal Register Volume 71, Number 107 (Monday, June 5, 2006)]
[Notices]
[Pages 32369-32371]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-8640]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4639-N-10]
Notice of HUD-Held Multifamily and Healthcare Loan Sale (MHLS
2006-1)
AGENCY: Office of the Assistant Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Notice of sale of mortgage loans.
-----------------------------------------------------------------------
SUMMARY: This notice announces HUD's intention to sell certain
unsubsidized multifamily and healthcare mortgage loans, without Federal
Housing Administration (FHA) insurance, in a competitive, sealed bid
sale (MHLS 2006-1). This notice also describes generally the bidding
process for the sale and certain persons who are ineligible to bid.
DATES: The Bidder's Information Package (BIP) will be made available to
qualified bidders on May 17, 2006. Bids for the loans must be submitted
on the bid date, which is currently scheduled for June 21, 2006. HUD
anticipates that awards will be made on or before June 22, 2006.
Closings are expected to take place on June 28, 2006.
ADDRESSES: To become a qualified bidder and receive the BIP,
prospective bidders must complete, execute, and submit a
Confidentiality Agreement and a Qualification Statement acceptable to
HUD. Both documents will be available on the HUD Web site at https://
www.hud.gov/offices/hsg/comp/asset/mfam/mhls.cfm. The executed
documents must be mailed and faxed to SSD Inc., HUD's Transaction
Specialist for the sale, at 1400 K Street, NW., Suite 950, Attention:
MHLS 2006-1 Sale Coordinator, Fax: (202) 464-3047.
FOR FURTHER INFORMATION CONTACT: John Lucey, Acting Deputy Director,
Asset Sales Office, Department of Housing and Urban Development, 451
Seventh Street, SW., Room 3136, Washington, DC 20410-8000; telephone
(202) 708-2625, extension 3927 or Gregory Bolton, Senior Attorney,
Office of Insured Housing, Multifamily Division, Room 9230; telephone
(202) 708-0614, extension 5245. Hearing- or speech-impaired individuals
may call (202) 708-4594 (TTY). These are not toll-free numbers.
SUPPLEMENTARY INFORMATION: HUD announces its intention to sell in MHLS
2006-1 certain unsubsidized mortgage
[[Page 32370]]
loans (Mortgage Loans) secured by multifamily and healthcare properties
located throughout the United States. The Mortgage Loans are comprised
primarily of non-performing mortgage loans. A final listing of the
Mortgage Loans will be included in the BIP. The Mortgage Loans will be
sold without FHA insurance and with servicing released. HUD will offer
qualified bidders an opportunity to bid competitively on the Mortgage
Loans.
The Mortgage Loans will be stratified for bidding purposes into
several mortgage loan pools. Each pool will contain Mortgage Loans that
generally have similar performance, property type, geographic location,
lien position and other characteristics. Qualified bidders may submit
bids on one or more pools of Mortgage Loans or may bid on individual
loans. A mortgagor who is a qualified bidder may submit an individual
bid on its own Mortgage Loan. Interested Mortgagors should review the
Qualification Statement to determine whether they may also be eligible
to qualify to submit bids on one or more pools of Mortgage Loans or on
individual loans in MHLS 2006-1.
The Bidding Process
The BIP will describe in detail the procedure for bidding in MHLS
2006-1. The BIP will also include a standardized nonnegotiable loan
sale agreement (Loan Sale Agreement).
As part of its bid, each bidder must submit a deposit equal to the
greater of $100,000 or 10% of the bid price. HUD will evaluate the bids
submitted and determine the successful bids in its sole and absolute
discretion. If a bidder is successful, the bidder's deposit will be
non-refundable and will be applied toward the purchase price. Deposits
will be returned to unsuccessful bidders. Closings are scheduled to
occur on June 28, 2006.
These are the essential terms of sale. The Loan Sale Agreement,
which will be included in the BIP, will contain additional terms and
details. To ensure a competitive bidding process, the terms of the
bidding process and the Loan Sale Agreement are not subject to
negotiation.
Due Diligence Review
The BIP will describe the due diligence process for reviewing loan
files in MHLS 2006-1. Qualified bidders will be able to access loan
information remotely via a high-speed Internet connection. Further
information on performing due diligence review of the Mortgage Loans
will be provided in the BIP.
Mortgage Loan Sale Policy
HUD reserves the right to add Mortgage Loans to or delete Mortgage
Loans from MHLS 2006-1 at any time prior to the Award Date. HUD also
reserves the right to reject any and all bids, in whole or in part,
without prejudice to HUD's right to include any Mortgage Loans in a
later sale. Mortgage Loans will not be withdrawn after the Award Date
except as is specifically provided in the Loan Sale Agreement.
This is a sale of unsubsidized mortgage loans. Pursuant to the
Multifamily Mortgage Sale Regulations, 24 CFR 290.30 et seq., the
Mortgage Loans will be sold without FHA insurance. Consistent with
HUD's policy as set forth in 24 CFR 290.35, HUD is unaware of any
Mortgage Loan that is delinquent and secures a project (1) for which
foreclosure appears unavoidable, and (2) in which very-low income
tenants reside who are not receiving housing assistance and who would
be likely to pay rent in excess of 30 percent of their adjusted monthly
income if HUD sold the Mortgage Loan. If HUD determines that any
Mortgage Loans meet these criteria, they will be removed from the sale.
Mortgage Loan Sale Procedure
HUD selected a competitive sale as the method to sell the Mortgage
Loans primarily to satisfy the Mortgage Sale Regulations. This method
of sale optimizes HUD's return on the sale of these Mortgage Loans,
affords the greatest opportunity for all qualified bidders to bid on
the Mortgage Loans, and provides the quickest and most efficient
vehicle for HUD to dispose of the Mortgage Loans.
Bidder Eligibility
In order to bid in the sale, a prospective bidder must complete,
execute and submit both a Confidentiality Agreement and a Qualification
Statement acceptable to HUD. The following individuals and entities are
ineligible to bid on any of the Mortgage Loans included in MHLS 2006-1:
(1) Any employee of HUD, a member of such employee's household, or
an entity owned or controlled by any such employee or member of such an
employee's household;
(2) Any individual or entity that is debarred, suspended, or
excluded from doing business with HUD pursuant to Title 24 of the Code
of Federal Regulations, part 24;
(3) Any contractor, subcontractor and/or consultant or advisor
(including any agent, employee, partner, director, principal or
affiliate of any of the foregoing) who performed services for or on
behalf of HUD in connection with MHLS 2006-1;
(4) Any individual who was a principal, partner, director, agent or
employee of any entity or individual described in subparagraph 3 above,
at any time during which the entity or individual performed services
for or on behalf of HUD in connection with MHLS 2006-1;
(5) Any individual or entity that uses the services, directly or
indirectly, of any person or entity ineligible under subparagraphs 1
through 4 above to assist in preparing any of its bids on the Mortgage
Loans;
(6) Any individual or entity which employs or uses the services of
an employee of HUD (other than in such employee's official capacity)
who is involved in MHLS 2006-1;
(7) Any mortgagor (or affiliate of a mortgagor) that failed to
submit to HUD on or before March 31, 2006, audited financial statements
for 1999 through 2005 for a project securing a Mortgage Loan; and
(8) Any individual or entity and any Related Party (as such term is
defined in the Qualification Statement) of such individual or entity
that is a mortgagor in any of HUD's multifamily housing programs and
that is in default under such mortgage loan or is in violation of any
regulatory or business agreements with HUD, unless such default or
violation is cured on or before June 14, 2006.
In addition, any entity or individual that serviced or held any
Mortgage Loan at any time during the 2-year period prior to May 31,
2006, is ineligible to bid on such Mortgage Loan or on the pool
containing such Mortgage Loan, but may bid on loan pools that do not
contain Mortgage Loans that they have serviced or held at any time
during the 2-year period prior to May 31, 2006. Also ineligible to bid
on any Mortgage Loan are: (a) Any affiliate or principal of any entity
or individual described in the preceding sentence; (b) any employee or
subcontractor of such entity or individual during that 2-year period;
or (c) any entity or individual that employs or uses the services of
any other entity or individual described in this paragraph in preparing
its bid on such Mortgage Loan.
Prospective bidders should carefully review the Qualification
Statement to determine whether they are eligible to submit bids on the
Mortgage Loans in MHLS 2006-1.
[[Page 32371]]
Freedom of Information Act Requests
HUD reserves the right, in its sole and absolute discretion, to
disclose information regarding MHLS 2006-1, including, but not limited
to, the identity of any successful bidder and its bid price or bid
percentage for any pool of loans or individual loan, upon the closing
of the sale of all the Mortgage Loans. Even if HUD elects not to
publicly disclose any information relating to MHLS 2006-1, HUD will
have the right to disclose any information that HUD is obligated to
disclose pursuant to the Freedom of Information Act and all regulations
promulgated thereunder.
Scope of Notice
This notice applies to MHLS 2006-1 and does not establish HUD's
policy for the sale of other mortgage loans.
Dated: May 25, 2006.
Brian D. Montgomery,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. E6-8640 Filed 6-2-06; 8:45 am]
BILLING CODE 4210-67-P
