HUD Set to Sell Nearly 40,000 Distressed Loans in 2013

In an effort to support hard-hit communities and to increase recovery on losses to the FHA's Mutual Mortgage Insurance Fund, HUD will sell roughly 40,000 distressed loans over the next year. Working with HUD, the Distressed Asset Stabilization Program (DASP) has been instrumental for selling loans of severely delinquent mortgages that are insured by the FHA. There is a competitive bidding process involved that sells loan pools to the highest bidder. The results of these sales from September's auction shows that investors and communities alike are eager for this program to continue. The sales were strong and had a record number of participating bidders. The FHA saw $1 billion in economic value added to their MMI fund due to the decrease of losses that were expected on FHA loans. The first sale in 2013 will be held late in the first quarter and will be held in two parts.

Posted in: DASP,distressed loans,FHA,HUD,MMI