$1.7B Portfolio of Non-performing HUD Loans Preps for Market

WASHINGTON, DC-As it said it would last month, the US Department of Housing and Urban Development has widened its defaulted mortgage pool program and will begin accepting bids from investors interested in acquiring pools of defaulted mortgages. DebtX, on behalf of SEBA Professional Services, is taking an eye-popping $1.7 billion portfolio of non-performing residential loans to market under the program, called the Distressed Asset Stabilization program.

The HUD portfolio, SFLS 2012-3, consists of loans collateralized by homes in Chicago, Newark, Phoenix and Tampa. This offering has a number of unique attributes to it, DebtX CEO Kingsley Greenland tells GlobeSt.com, starting with its sheer size. In addition, it is broadly marketed to qualified investors—meaning it is open to the public, unlike the GSEs’ securitized pools. “Also, the structure is very novel,” Greenland says.