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Second Notice of HUD Non-Vacant Loan Sale (HNVLS 2026-1)
Plain English Summary
HUD has announced a new sale of reverse mortgage loans, specifically home equity conversion mortgages (HECM), that are secured by homes currently occupied. This sale, which was originally planned for earlier this year, is now set for September 1, 2026, and involves loans totaling about $465 million. These loans are for properties where the borrowers have passed away, and their heirs have not claimed the properties within the required time frame. Insurance agents should keep an eye out for further details on how to participate in the bidding process as they become available.
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This notice updates the announcement issued on January 21, 2026 (91 FR 2555) of HUD's intention to offer a number of home equity conversion mortgages (HECM, or reverse mortgage loans) secured by occupied properties with an estimated bid date on September 1, 2026. Because the sale was delayed, HUD is issuing this second, updated notice of HNVLS 2026-1. The sale will consist of due and payable Secretary-held reverse mortgage loans with a loan balance of approximately $465 million. The mortgage loans consist of first-liens secured by real property that is occupied, where the borrower and any borrowing or non-borrowing spouse are deceased, and heirs have not come forward in the time elapsed. This initiative supports HUD's continued efforts to reduce financial risk to the Mutual Mortgage Insurance Fund and promote the efficient disposition of defaulted assets. Additional information regarding sale structure, loan pool composition, and bidding procedures will be provided in subsequent announcements. This notice also generally describes the bidding process for the sale and an attestation required to qualify to bid in the sale. This is the second sale offering of its type and is scheduled for September 1, 2026.