# 2026-16242: HUD Sells Off Dead Borrowers' Reverse Mortgages—Heirs AWOL 2026-16242, Second Notice of HUD Non-Vacant Loan Sale (HNVLS 2026-1), is a Federal Register notice from Housing and Urban Development Department published 2026-08-10, effective 2026-09-01; PRIA reads it as touching household money (as of 2026-08-17). - Canonical: https://policyrisk.com/federal-register/2026-16242 - As of: 2026-08-17 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Document number: 2026-16242 - Title: Second Notice of HUD Non-Vacant Loan Sale (HNVLS 2026-1) - Type: Notice - Agencies: Housing and Urban Development Department - Citation: 91 FR 51505 - Published: 2026-08-10 - Effective: 2026-09-01 - Comments close: not stated - Significant: no - Touches household money: yes - Regulation identifier numbers: none - Last updated: 2026-08-17 ## In one line HUD Sells Off Dead Borrowers' Reverse Mortgages—Heirs AWOL ## Summary HUD is selling about $465 million in reverse mortgage loans tied to homes where the borrowers have passed away and heirs haven't stepped up. The sale, delayed but now set for September 1, 2026, helps HUD manage risk and clear out these loans. Qualified bidders can get info starting August 4 and must submit paperwork to join the fun. ## Abstract 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. ## Effects PRIA read - 1,500 Reverse Mortgages Sold: mixed, medium. HUD is selling about 1,500 reverse mortgage loans with a loan balance of approximately $465 million that are secured by occupied single‑family properties where the borrower and any borrowing spouse are deceased and heirs have not come forward. The loans will be sold without FHA insurance and with s… - How to Bid and Key Dates: benefit, medium. Prospective bidders can get the Bidder Information Package starting on or about August 4, 2026, and must submit bids between 10:00 a.m. and 1:00 p.m. ET on the Bid Date, currently September 1, 2026. HUD anticipates awards on or about September 3, 2026 and settlement/servicing transfer no later than… - Less Paperwork for Nonprofits and Governments: benefit, low. Nonprofit and governmental entities will no longer need to submit the HUD‑9612 qualification addendum for this sale. Those entities will only be required to certify eligibility under the Qualification Statement (HUD‑9611) to be eligible to bid in HNVLS 2026‑1. - Attestation Against Prohibited Property Acquisitions: cost, medium. Prospective bidders must provide an attestation that no mortgage loan purchased will result in an acquisition of the security property in circumstances prohibited by Title X of the 21st Century ROAD to Housing Act (Pub. L. 119‑101), consistent with Executive Order 14376. This attestation is require… - Who Is Ineligible to Bid: cost, medium. The notice lists specific ineligibility criteria: entities or individuals that are debarred/suspended or otherwise restricted from government business, those debarred from mortgage business, entities whose Ginnie Mae issuer rights were terminated, parties in violation of prior sale obligations, HUD… - Bids and Winners May Be Publicly Released: cost, low. HUD may disclose information about HNVLS 2026‑1, including the identity of any successful bidder and its bid price or bid percentage for any pool or loan, upon closing of the sale of all the mortgage loans. HUD will also disclose information as required by the Freedom of Information Act. ## Related documents - [2026-16228](https://policyrisk.com/federal-register/2026-16228): HUD's Implementation of the Fair Housing Act's Disparate Impact Standard; Amendments to HUD's Title VI Regulations, 2026-08-10 - [2026-13939](https://policyrisk.com/federal-register/2026-13939): Rescission of Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; Building to the Feder…, 2026-07-10 - [2026-08406](https://policyrisk.com/federal-register/2026-08406): HOME Investment Partnerships Program: Further Program Updates and Streamlining, 2026-04-30 - [2026-08339](https://policyrisk.com/federal-register/2026-08339): HOME Investment Partnerships Program: Further Program Updates and Streamlining, 2026-04-29 - [2026-08244](https://policyrisk.com/federal-register/2026-08244): Equal Access to Housing in HUD Programs Revisions, 2026-04-28 - [2026-06926](https://policyrisk.com/federal-register/2026-06926): HOME Investment Partnerships Program-Maximum Per-Unit Subsidy Limit Methodology and Amount; Notice for Comment, 2026-04-10 ## Sources - [2026-16242 on federalregister.gov](https://www.federalregister.gov/documents/2026/08/10/2026-16242/second-notice-of-hud-non-vacant-loan-sale-hnvls-2026-1) - [2026-16242 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-08-10/pdf/2026-16242.pdf) ## Related - [Previous: 2026-16241, Banister Hydro, Inc.; Notice of Reasonable Period of Time for Water Quality Cer…](https://policyrisk.com/federal-register/2026-16241) - [Next: 2026-16243, Agency Information Collection Activities; Comment Request on U.S. Trust and Est…](https://policyrisk.com/federal-register/2026-16243) - [All Federal Register documents](https://policyrisk.com/federal-register) Source: PRIA, https://policyrisk.com/federal-register/2026-16242 (as of 2026-08-17).