Department of Housing and Urban Development April 10, 2019 – Federal Register Recent Federal Regulation Documents

In accordance with the Privacy Act of 1974, as amended, the Office of Single Family Asset Management, Department of Housing and Urban Development (HUD), proposes to create a new system of records (SOR) titled Validation and Disposition Services (VDS-Best Ex). The SOR VDS-Best Ex will allow HUD to mitigate financial risk to the Federal Housing Administration (FHA) Mutual Mortgage Insurance Fund (MMIF) by providing property valuation and disposition strategies for: FHA's Single Family Forward Mortgage Insurance portfolio of loans 90 days or more delinquent. FHA's Single Family Secretary-held Real Estate Owned (REO) portfolio. The SOR VDS-Best Ex will perform statistical analysis of individual property address, square footage, age of property, location, and associated property characteristics such as number and type of living units to identify similarly situated comparable properties. This analysis will provide a valuation to compare the value of neighboring properties with similar attributes and provide a point-in-time estimation of the current value of the FHA property. VDS-Best Ex will use a Best Execution Calculator and use Automated Valuation Models (AVMs) to provide FHA/HUD with the best of four strategies for disposing of mortgages that are over 90 days delinquent. VDS-Best Ex will establish a Fair Market List Price and a bid and counteroffer process for HUD's Single Family REO properties, to identify the ideal pricing point and discount rate percentages that FHA should consider when selling a property from its Secretary-held REO portfolio.