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Capital Markets Today

Nov 11, 2015

HUD has announced the latest sale in the Distressed Asset Stabilization Program (DASP) consisting of one offering date with National Pools and Neighborhood Stabilization Outcome (NSO) Pools offered on November 18, 2015.  HUD's NSO offerings will include one pool for which only non-profit bidders or units of local government are eligible to bid. HUD announced significant changes in DASP back in April in order to achieve better outcomes for borrowers. Under the new rules, loan servicers are required to delay foreclosure on a home for a year and evaluate all borrowers facing foreclosure for participation in the government's HAMP or a similar loss mitigation program. The improvements to the NSO sales portion of DASP include giving non-profits a first look at vacant properties, allowing purchasers to re-sell notes to non-profits, and offering a pool of loans for non-profits only. On October 21, 2015, HUD produced a webinar that was geared towards non-profits outlining the process of obtaining bidder approval, reporting requirements and required outcomes.  The webinar featured Neighborhood Stabilization Capital Management, an investment firm dedicated to working with HUD to promote the DASP program and non-profit inclusion.