ML-Implode News - HUD Said to Fail in Bid to Sell $450 Million of FHA Mortgages

The U.S. Department of Housing and Urban Development for the first time failed to sell some of the soured mortgages it's auctioning off in the wake of the housing crisis, according to four people with knowledge of the results.
HUD deemed bids on about $450 million of home loans too low to accept at an Oct. 30 sale... The sales are an attempt by HUD to simultaneously stem losses at the financially troubled FHA and pursue its public mission of averting foreclosures on the underlying properties... The mortgages that HUD chose not to sell last month were in the two pools that had the highest debt relative to the value of underlying properties, the people said. The department sought to offload a total of $1.7 billion in loans.

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HUD Said to Fail in Bid to Sell $450 Million of FHA Mortgages