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Housing

HUD Announces Sale of Reverse Mortgage Loans

Strategic Insights

— 1 min read

The U.S. Department of Housing and Urban Development (HUD) is offering approximately 1,600 home equity conversion mortgages (HECM, or reverse mortgage loans) secured by vacant properties with a loan balance of approximately $444 million. This is the fifteenth sale of its type and will be held on August 6, 2025. The sale is part of HUD's efforts to reduce financial risk to the Mutual Mortgage Insurance Fund and promote the efficient disposition of defaulted assets.

Key Takeaways:

  • The sale will consist of due and payable Secretary-held reverse mortgage loans secured by single family, vacant residential properties.
  • All borrowers are deceased, and no borrower is survived by a non-borrowing spouse.
  • The mortgage loans will be sold without FHA insurance and with servicing released.
  • The sale will be held on August 6, 2025, and awards will be made on or about August 8, 2025.
  • The sale is the first of two planned offerings, with a second sale of approximately 2,000 additional HECM loans tentatively planned for September 2025.
  • Prospective bidders must complete, execute, and submit a Confidentiality Agreement and Qualification Statement acceptable to HUD in order to participate in the sale.
  • Certain entities, including individuals or entities that are currently debarred, suspended, or excluded from doing business with HUD, are ineligible to bid on the reverse mortgage loans.
  • HUD reserves the right to remove mortgage loans from the sale at any time prior to the Award Date and the settlement date.

Statistics:

  • Approximately 1,600 home equity conversion mortgages (HECM, or reverse mortgage loans) will be offered for sale.
  • The loan balance of the mortgage loans is approximately $444 million.
  • The sale is the fifteenth of its type and will be held on August 6, 2025.
  • Awards will be made on or about August 8, 2025.
  • The second sale of approximately 2,000 additional HECM loans is tentatively planned for September 2025.
  • The sale will be held online, and prospective bidders can access the due diligence materials remotely via a high-speed internet connection.

Sources:

  • Federal Register: "Notice of Sales of Reverse Mortgage Loans" (July 31, 2025).
  • HUD Website: "Home Equity Conversion Mortgages (HECMs)".
  • Legislation: National Housing Act, as amended, including sections 204(g) and 255.
  • Regulations: Governmentwide Suspension and Debarment regulations at 2 CFR parts 180 and 2424.
  • HUD-9611: "Confidentiality Agreement and Qualification Statement".

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