| Sale Name | Bid Date | Closing Date | Type of Loan | UPB ($millions) | Proceeds
($millions) |
% UPB (See note below*) | Profit
($millions) |
Winners | Notes |
|---|---|---|---|---|---|---|---|---|---|
| (1) G-4 Reflector Sale | Oct-93 | N/A | 15,212 Single Family 221(g)(4) | $97.52 | $84.10 | 85.190437601 | $1.70 | First Boston; United Mortgage; Kidder | Hamilton was FA; 221(g)(4) allows mortgagees to "put" loans back to HUD -- in a reflector sale, HUD never takes title, but arranges for transfer from "putting" lender to "purchasing" lender directly |
| (2) Title X Land Development | Jun-94 | N/A | Title X Land Development | $98.72 | $16.80 | 17.227235439 | $8.50 | Atlantic Gulf; Oppernheimer; Beal Mortgage; TRM; Jack Weglarz; City of San Bernardino; William Lyon Homes | Hamilton was FA; First application of Credit Reform Act of 1990 requirements; |
| (3) SF 221(g)(4) loans | Jun-94 | N/A | 84 Performing and subperforming Single Family 221(g)(4) | $97.52 | $89.00 | 91.263330599 | $3.90 | Not available | Hamilton was FA; first application of Credit Reform Act of 1990 requirements; |
| (4) Fannie Mae Reassign-ment | Aug-94 | N/A | 85 Multifamily 221(d) (Coin-surance?) | $89.00 | $89.00 | 100% | Not available | Fannie Mae | Hamilton was FA; negotiated reassignment, not an auction. |
| (5) G-4 Reflector Sale | Oct-94 | N/A | 206 221(d)(3) and (4) performing Multifamily | $151.70 | $110.00 | 72.511535926 | $3.90 | Lehman Brothers | Hamilton was FA |
| (6) Southeast | Mar-95 | N/A | 117 Multifamily 221(d)(3) and (4), Non-performing | $907 | $724 | 78% * | $437.60 | Allied Capital; CCAT2; Charles Warwick; Condor I (GE Capital, for 162 loans); DS Kendall, Heartland, Kisco Retirement; Maunion Realty; Mortgage Recovery Fund; Recoveries Fund I; Twin Lakes LP; WRH Mortgage | Hamilton FA; first major public sale; fist use of design book and optimization; policy of no borrower compromise, but borrowers can bid; policy of no continuing insurance; policy of providing as much due diligence as possible to bidders (at $125/file); s |
| (7) National Performing | Sep-95 | N/A | 138 or 142 Multifamily Performing | $282.25 | $256.65? | 90% * | $25.60 | Bankers Trust, Leetsdale Western Terrace, Limited Liability Corp. | "Partial securitization" with rating agency "comfort" letters establishing credit support numbers assuming internal credit enhancement ; first optimization error -- no effect on selection of winners; Williams Adley was HUD's prime contractor with Hamilton |
| (8) Title I | Sep-95 | N/A | 2,702 Rehab and Manufactured Housing | 26 | $0.17 | $0.65 | $0.10 | Sagres Co. | Hamilton was FA |
| (9) SF #1 | 10/25/95 with 11/3/95 reoffering | N/A | 13,009 221(g)(4) and Title I Single Family | $523.23 | $392.20 | 74.95747568 | $7.90 | EMC Corp; BCGS (Blackrock, Cargill, Berkeley, Security National); CF/SPC (Commercial Federal); Schillinger Development | Hamilton was FA; market assumed loans were of same value as RTC SF loans (they were better) and undervalued loans; Williams Adley, Coopers, Singley, Saul Ewing and Asset Strategies were part of team; Asset Strategies refused to perform and was replaced by |
| (10) West of Mississippi | 1-Nov-95 | N/A | 152 MF Nonperforming | $622.34 | $385.20 | 62% * | $107.80 | ALI, CA Bianco; CCAT2; Chas Gower & Kelsey Kennon; Delmar Gardens; Herbert Zieben; Hillside LLC, J&B Management, Jack Menzie; Kisco Retirement Communities; Lamesa Villa Apartments; Liberty National; Liberty Oaks; Loan Acceptance Corp, Mary R. Wolff Real | Hamilton was FA |
| (11) SF#2; | 20-Mar-96 | N/A | 16,539 Single Family; average balance of $45,000; concentrations in CA, CO, TX and AZ | $758 | $638.80 | 83.5% * | $143.60 | BCBF, LLC (BlackRock and Berkeley) | Hamilton was FA; place based questionnaire for loans in Washington DC, New Orleans and Los AngelesA; 36 month credit histories provided |
| (12) Title X | May-96 | N/A | 1 Land development loan | $11 | $2 | 18.03% | $2.60 | Creative Communities, Inc. | |
| (13) Title I | May-96 | N/A | 13,112 Single Family Rehab and Manufactured Housing (unsecured) | $161.85 | $1.54 | 0.9514983009 | $0.90 | United Mortgage | Title 1 loans are sold at deep discounts because they are not first lien mortgages on real estate. Mobile homes generally are placed on rented land lots in mobile home parks owned by third parties. Rehabilitation loan mortgages generally are subordinated |
| (14) Partially Assisted; | Debt:---; Equity:----- | Jun-96 | 158 Multifamily nonper-forming 221(d)(3) and (d)(4) with up to [50%] Section 8 assistance | $883.63 | $645.50 | 73.05093761 | $213.00 | Condor I (GE Capital) for debt; Whitehall (Goldman Sachs) for equity with JE Robert servicing | Hamilton was FA; securitized trust structure with offering of debt first, then 70% of equity, with HUD retaining 30% equity interest to share up-side; 10% of portfolio was owned by NHP; BlackRock was sub-advisor for Hamilton |
| (15) North and Central | Aug-96 | 151 Multifamily Nonperforming 221(d)(3) and (4) | $847.20 | $621.70 | 73.382908404 | $235.00 | Lennar Atlantic Partners; Berkeley; Loan Acceptance Corp.; Lehman ALI; Maunion Realty Corp; CCAT2; ARV Assisted Living Corp.; Asset Recovery Fund; Mortgage Investment; John Phzyk; Resource Properties XXIII; Chrismond Financial Corp.; Riverview Tower Homeo | First sale where Hamilton was crosscutter and another firm (Cushman & Wakefield/Price Waterhouse) was FA | |
| (16) SF #3 | Sep-96 | N/A | 16,996 Single Family performing, subperforming and nonperforming | $804.50 | $730.20 | 90.7% * | $164.00 | Salomon Brothers; First Boston; BlackRock | Place based component with 2 of 811 blocks of mortgages sold separately: the two blocks were composed of 31 nonperforming loans w/ UPB of $1.7 million and were secured by single family homes in Albuquerque, NM with mortgages clustered in contiguous zip co |
| (16) Midwest | 12-13 Dec-97 | Feb-97 | 107 Multifamily Nonperforming, mostly in Michigan and Illinois | $873 | $762.70 | 87.3% * | $362 | Condor I (GE Capital)/CS First Boston; WHBCF, LLC; ALI, Inc.; BCFL, LLC.; Loan Acceptance Corp.; Beaver Creek Acquisitions; Charles A. Glower; Maunion Realty; Vaughn A. Pengelly; James L. Hubbard; Hartman & Tyler; River City Apartments Assn.; Charles Ham | First sale after the optimization discrepancy was discovered -- a new auditors' procedure was used; Hamilton was crosscutter; Cushman was FA, Tradewinds International provided due diligence; there were 559 bids from 62 different bidders |
| (17) SF #4 | Jan-97 | Mar-97 | 18,894 221(g)(4) Single Family | $1,131 | $1,040 | 92% * | $247 | Salomon Brothers,Ocwen; EMC Mortgage | Merrill Lynch FA; single family component similar to SF #3; there were 1,639 bids from 11 different bidders. |
| (18) HFA/Missouri HFA; Hamilton was FA | 1995 | Sep-96 | 26 221(d)(4) and 236 with a total of 930 units with Section 8 Multifamily Non-performing; entire HUD held Multifamily portfolio of loans on properties in state of Missouri (a few dropped out for legal reasons) | N/A | ten dollars | Not applicable | Not applicable | MDHC (the Missouri housing finance agency) | IRP left in place, $8.4MM rehab obligations ($4,100/unit) and $720,000 tenant initiatives assumed by purchaser; regulatory agreements left in place or replaced with state version; first sale of loans on fully subsidized properties; Hamilton performed valu |
| (19) Pennslvania HFA; Hamilton was FA | Not closed while Hamilton was advising HUD | Same as HFA/Missouri HFA | N/A | N/A | N/A | N/A | Pennsylvania HFA | Sale was never closed because the HFA was not willing to assume risks of Section 8 housing. | |
| (20) Maryland HFA; Hamilton was FA | Not closed while Hamilton was advising HUD | Same as HfA/Missouri HFA | N/A | N/A | N/A | N/A | Maryland HFA | Sale was never closed because the HFA was not willing to assume risks of Section 8 housing. Discussions were held re: possibility of using this porfolio for a place based MF trust (see description below), but this never occurred. | |
| (21) SF #5 | Sep-97 | Approximately 33,000 Single Family | $1,144 | Unavailable | Unavailable | Unavailable | Unavailable | ||
| (22) Health Care; Hamilton was CCA | Jul-97 | 36 nursing home mortgages | $113 | Unavailable | Unavailable | Unavailable | Unavailable |
Abbreviations: UPB = Unpaid Principal Balance; SF=single family; MF=multifamily housing; FA=financial advisor; CCA = crosscutting advisor; HFA = housing finance agency; EY = Ernst & Young.
Note: number designations used in connection with loan descriptions (such as 221(g)(4)) refer to the section of the National Housing Act the loan is insured under.
* UPB in sales designated in the"% UPB" column with a "*" are taken from the limited sources available to Hamilton. Because of certain minor discrepancies in documentation available to Hamilton, where %UPB is not equal to column F divided by column E, Hamilton has no way of knowing whether the most accurate number is % UPB or Proceeds. The discrepancies in Proceeds reported in various documents available to Hamilton are due to the fact that there were sometimes adjustments made to loan pools after the bid date, as when a loan would drop out of the pool because of legal problems with conveyance, lawsuits, etc. Where no %UPB calculation was found for a particular sale, %UPB is merely a calculated number equal to column F divided by column E.