99702 Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Rules and Regulations 

7400.11J, Airspace Designations and 

Reporting Points, dated July 31, 2024, 

and effective September 15, 2024, is 

amended as follows: 

Paragraph 5000 Class D Airspace. 

* * * * * 

ANM WA D Lynden, WA [Amended] 

Abbotsford Airport, BC 

(Lat. 49°01′31′′ N, long. 122°21′36′′ W) 

Point in Space 

(Lat. 49°01′31′′ N, long. 122°21′48′′ W) 

Vancouver VORTAC 

(Lat. 49°04′38′′ N, long. 123°08′57′′ W) 

Vancouver International Airport, BC 

(Lat. 49°11′41′′ N, long. 123°11′02′′ W) 

That airspace extending upward from the 

surface to 2,500 feet MSL beginning at lat. 

48°57′59′′ N, long. 122°18′57′′ W, thence 

counterclockwise along the 4-mile radius of 

the Point in Space to lat. 49°00′05′′ N, long. 

122°16′08′′ W, thence west along the U.S./ 

Canadian border to lat. 49°00′05′′ N, long. 

122°45′58′′ W, thence clockwise along the 16- 

mile arc of the Vancouver VORTAC to lat. 

48°57′59′′ N, long. 122°47′12′′ W, thence east 

along lat. 48°57′59′′ N to the point of 

beginning, excluding the airspace below 

1,500 feet MSL and west of long. 122°33′50′′ 

W, the airspace within the Vancouver 

International Airport Class C airspace area, 

and the airspace overlying the territory of 

Canada. 

* * * * * 

Paragraph 6005 Class E Airspace Areas 

Extending Upward From 700 Feet or More 

Above the Surface of the Earth. 

* * * * * 

ANM WA E5 Kendall, WA [Amended] 

Abbotsford Airport, BC 

(Lat. 49°01′31′′ N, long. 122°21′36′′ W) 

That airspace extending upward from 

1,200 feet above the surface bounded by a 

line beginning at lat. 49°00′00′′ N, long. 

122°15′00′′ W; thence east along the U.S./ 

Canadian border to lat. 49°00′00′′ N, long. 

121°20′15′′ W; thence south to lat. 48°51′40′′ 

N, long. 121°20′15′′ W; thence west to lat. 

48°51′40′′ N, long. 122°15′00′′ W; thence back 

to the point of origination. 

* * * * * 

Issued in Des Moines, Washington, on 

December 5, 2024. 

B.G. Chew, 

Group Manager, Operations Support Group, 

Western Service Center. 

[FR Doc. 2024–29085 Filed 12–10–24; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 744 

[Docket No. 241205–0313] 

RIN 0694–AJ96 

Additions to the Entity List 

AGENCY: Bureau of Industry and 

Security, Department of Commerce. 

ACTION: Final rule. 

SUMMARY: In this rule, the Bureau of 

Industry and Security (BIS) amends the 

Export Administration Regulations 

(EAR) by adding 8 entities to the Entity 

List, under the destinations of Burma 

(2), China, People’s Republic of (China) 

(2), and Russia (4). These entities have 

been determined by the U.S. 

Government to be acting contrary to the 

national security or foreign policy 

interests of the United States. 

DATES: This rule is effective December 

11, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Chair, End-User Review Committee, 

Office of the Assistant Secretary for 

Export Administration, Bureau of 

Industry and Security, Department of 

Commerce, Phone: (202) 482–5991, 

Email: ERC@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The Entity List 

The Entity List (supplement no. 4 to 

part 744 of the EAR (15 CFR parts 730– 

774)) identifies entities for which there 

is reasonable cause to believe, based on 

specific and articulable facts, that the 

entities have been involved, are 

involved, or pose a significant risk of 

being or becoming involved in activities 

contrary to the national security or 

foreign policy interests of the United 

States, pursuant to § 744.11(b). The EAR 

imposes additional license requirements 

on, and limits the availability of, most 

license exceptions for exports, 

reexports, and transfers (in-country) 

when a listed entity is a party to the 

transaction. The license review policy 

for each listing is identified in the 

‘‘License Review Policy’’ column on the 

Entity List, and the impact on the 

availability of license exceptions is 

described in the relevant Federal 

Register document that added the 

listing to the Entity List. BIS amends the 

Entity List pursuant to parts 744 

(Control Policy: End-User and End-Use 

Based) and 746 (Embargoes and Other 

Special Controls) of the EAR. 

The End-User Review Committee 

(ERC), composed of representatives of 

the Departments of Commerce (Chair), 

State, Defense, Energy and, where 

appropriate, the Treasury, makes all 

decisions regarding additions to, 

removals from, or other modifications to 

the Entity List. The ERC makes all 

decisions to add an entry to the Entity 

List by majority vote and makes all 

decisions to remove or modify an entry 

by unanimous vote. 

Entity List Decisions 

Additions to the Entity List 

The ERC determined to add Sky 

Aviator Company Limited and Synpex 

Shwe Company Ltd., under the 

destination of Burma, to the Entity List. 

These additions are being made because 

Sky Aviator Company Limited, and 

Synpex Shwe Company Ltd., have 

supplied the Burmese military with 

parts and components that have enabled 

the military to carry out human rights 

violations, including brutal aerial 

attacks against the civilian population. 

These activities are contrary to the 

foreign policy interests of the United 

States under § 744.11 of the EAR. 

Licenses to export, reexport or transfer 

(in-country) items subject to the EAR to 

both of these entities will be required 

for all items subject to the EAR, and 

license applications will be reviewed 

with a license review policy of 

presumption of denial. 

The ERC determined to add Beijing 

Zhongdun Security Technology Group 

Co., Ltd. and Zhejiang Uniview 

Technologies Co., Ltd., under the 

destination of China, to the Entity List. 

Beijing Zhongdun Security Technology 

Group Co., Ltd. is being added because 

it develops and sells products and 

services that enable China’s public 

security establishment to carry out 

human rights violations. Zhejiang 

Uniview Technologies Co., Ltd. is being 

added because it enables human rights 

violations, including high-technology 

surveillance targeted at the general 

population, Uyghurs, and members of 

other ethnic and religious minority 

groups. These activities are contrary to 

the foreign policy interests of the United 

States under § 744.11 of the EAR. 

Licenses to export, reexport or transfer 

(in-country) items subject to the EAR to 

both of these entities will be required 

for all items subject to the EAR, and 

license applications will be reviewed 

with a license review policy of 

presumption of denial. 

The ERC determined to add Aviasnab 

LLC and Joint Stock Company Gorizont, 

under the destination of Russia, to the 

Entity List. These additions are being 

made because Aviasnab LLC and Joint 

Stock Company Gorizont have supplied 


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Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Rules and Regulations 99703 

the Burmese military with parts and 

components that have enabled the 

military to carry out human rights 

violations, including brutal aerial 

attacks against the civilian population. 

These activities are contrary to the 

foreign policy interests of the United 

States under § 744.11 of the EAR. 

Licenses to export, reexport or transfer 

(in-country) items subject to the EAR to 

both of these entities will be required 

for all items subject to the EAR, and 

license applications will be reviewed 

with a license review policy of 

presumption of denial. 

The ERC determined to add 

NTechLab LLC and Technology 

Videoanalysis LLC, under the 

destination of Russia, to the Entity List. 

These additions are being made because 

NtechLab LLC and Technology 

Videoanalysis LLC develop and supply 

facial recognition software to the 

Russian government that uses these 

products and services to track and target 

peaceful protesters and activists. The 

products and services that these 

companies provide have become 

integral to Russia’s mass-surveillance 

apparatus. These activities are contrary 

to the foreign policy interests of the 

United States under § 744.11 of the 

EAR. Licenses will be required for all 

items subject to the EAR. License 

applications will be reviewed with a 

license review policy of presumption of 

denial. 

For the reasons described above, this 

final rule adds the following 8 entities 

including aliases where appropriate, to 

the Entity List: 

Burma 

• Sky Aviator Company Limited; and 

• Synepex Shwe Company Ltd. 

China 

• Beijing Zhongdun Security 

Technology Group Co., Ltd.; and 

• Zhejiang Uniview Technologies Co., 

Ltd. 

Russia 

• Aviasnab LLC; 

• Joint Stock Company Gorizont; 

• NtechLab LLC; and 

• Technology Videoanalysis LLC. 

Savings Clause 

For the changes being made in this 

final rule, shipments of items removed 

from eligibility for a License Exception 

or export, reexport, or transfer (incountry) without a license (NLR) as a 

result of this regulatory action that were 

en route aboard a carrier to a port of 

export, reexport, or transfer (in-country), 

on December 11, 2024, pursuant to 

actual orders for export, reexport, or 

transfer (in-country) to or within a 

foreign destination, may proceed to that 

destination under the previous 

eligibility for a License Exception or 

export, reexport, or transfer (in-country) 

without a license (NLR) before January 

10, 2025. Any such items not actually 

exported, reexported or transferred (incountry) before midnight, on January 10, 

2025, require a license in accordance 

with this final rule. 

Export Control Reform Act of 2018 

On August 13, 2018, the President 

signed into law the John S. McCain 

National Defense Authorization Act for 

Fiscal Year 2019, which included the 

Export Control Reform Act of 2018 

(ECRA) (50 U.S.C. 4801–4852). ECRA 

provides the legal basis for BIS’s 

principal authorities and serves as the 

authority under which BIS issues this 

rule. In particular, section 1753 of ECRA 

(50 U.S.C. 4812) authorizes the 

regulation of exports, reexports, and 

transfers (in-country) of items subject to 

U.S. jurisdiction. Further, section 

1754(a)(1)–(16) of ECRA (50 U.S.C. 

4813(a)(1)–(16)) authorizes, inter alia, 

establishing and maintaining a list of 

foreign persons and end-uses that are 

determined to be a threat to the national 

security and foreign policy of the United 

States pursuant to the policy set forth in 

section 1752(2)(A), and restricting 

exports, reexports, and in-country 

transfers of any controlled items to any 

foreign person or end-use so listed; 

apprising the public of changes in 

policy, regulations, and procedures; and 

any other action necessary to carry out 

ECRA that is not otherwise prohibited 

by law. Pursuant to section 1762(a) of 

ECRA (50 U.S.C. 4821(a)), these changes 

can be imposed in a final rule without 

prior notice and comment. 

Rulemaking Requirements 

1. This rule has been determined to be 

not significant for purposes of Executive 

Order 12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to or be subject to a penalty 

for failure to comply with a collection 

of information, subject to the 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) (PRA), unless that collection of 

information displays a currently valid 

Office of Management and Budget 

(OMB) Control Number. This regulation 

involves an information collection 

approved by OMB under control 

number 0694–0088, Simplified Network 

Application Processing System. BIS 

does not anticipate a change to the 

burden hours associated with this 

collection as a result of this rule. 

Information regarding the collection, 

including all supporting materials, can 

be accessed at https://www.reginfo.gov/ 

public/do/PRAMain. 

3. This rule does not contain policies 

with federalism implications as that 

term is defined in Executive Order 

13132. 

4. Pursuant to section 1762 of the 

Export Control Reform Act of 2018, this 

action is exempt from the 

Administrative Procedure Act (5 U.S.C. 

553) requirements for notice of 

proposed rulemaking, opportunity for 

public participation, and delay in 

effective date. 

5. Because a notice of proposed 

rulemaking and an opportunity for 

public comment are not required to be 

given for this rule by 5 U.S.C. 553, or 

by any other law, the analytical 

requirements of the Regulatory 

Flexibility Act, 5 U.S.C. 601, et seq., are 

not applicable. Accordingly, no 

regulatory flexibility analysis is 

required, and none has been prepared. 

List of Subjects in 15 CFR Part 744 

Exports, Reporting and recordkeeping 

requirements, Terrorism. 

Accordingly, part 744 of the Export 

Administration Regulations (15 CFR 

parts 730–774) is amended as follows: 

PART 744—END-USE AND END-USER 

CONTROLS 

■ 1. The authority citation for part 744 

is revised to read as follows: 

Authority: 50 U.S.C. 4801–4852; 50 U.S.C. 

4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. 

3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 

et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR 

20947, 3 CFR, 1978 Comp., p. 179; E.O. 

12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 

608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 

Comp., p. 950; E.O. 13026, 61 FR 58767, 3 

CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 

45167, 3 CFR, 1998 Comp., p. 208; E.O. 

13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 

783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 

Comp., p. 786; Notice of September 7, 2023, 

88 FR 62439 (September 11, 2023); Notice of 

November 1, 2023, 88 FR 75475 (November 

3, 2023). 

■ 2. Supplement no. 4 is amended by: 

■ a. Under BURMA, adding entries in 

alphabetical order for ‘‘Sky Aviator 

Company Limited’’ and ‘‘Synepex Shwe 

Company Ltd.’’ 

■ b. Under CHINA, PEOPLE’S 

REPUBLIC OF adding entries in 

alphabetical order for ‘‘Beijing 

Zhongdun Security Technology Group 

Co., Ltd.’’ and ‘‘Zhejiang Uniview 

Technologies Co., Ltd.;’’ and 

■ c. Under RUSSIA, adding entries in 

alphabetical order for ‘‘Aviasnab LLC’’, 

‘‘Joint Stock Company Gorizont’’, 


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99704 Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Rules and Regulations 

‘‘NtechLab LLC’’, and ‘‘Technology 

Videoanalysis LLC’’. 

The additions read as follows: 

Supplement No. 4 to Part 744—Entity 

List 

* * * * * 

Country Entity License requirement License review policy 

Federal Register citation 

*******

Burma .................... * * * * * * 

Sky Aviator Company Limited, a.k.a., the following four aliases: 

—Sky Aviator Company Ltd.; 

—Sky Aviator Co.; 

—Sky Aviator.; and 

—Sky Aviator Co. Ltd. 

For all items subject 

to the EAR. (See 

§ 744.11 of the 

EAR).

Presumption of denial.89 FR [INSERT FR 

PAGE NUMBER] 

AND December 

11, 2024. 

No. (204/2), Myinthar 11th Street, 14/1 Ward, South Okkalarpa Township, Yangon Region, Burma; and No. 286, Bogyoke Street, Ward No. 

2, Waibargi, North Okkalarpa Township, Yangon Region, Burma. 

* * * * * * 

Synpex Shwe Company Ltd., a.k.a., the following one alias: 

—SS Techniques Company Limited. 

Nat Yay Kann (1) Street, No.1259, (35) Quarter, North Dagon Township, 

Yangon Region, Burma. 

For all items subject 

to the EAR. (See 

§ 744.11 of the 

EAR).

Presumption of denial.89 FR [INSERT FR 

PAGE NUMBER] 

AND December 

11, 2024. 

*******

CHINA, PEOPLE’S 

REPUBLIC OF.

* * * * * * 

Beijing Zhongdun Security Technology Group Co., Ltd., a.k.a , the following one alias: 

—Beijing Zhongdun Security Technology Development Co. 

No. 1, Shouti South Road, Haidian District, Beijing, China; and No. 1 

Capital Gymnasium South Road, Beijing, China. 

For all items subject 

to the EAR. (See 

§ 744.11 of the 

EAR).

Presumption of denial.89 FR [INSERT FR 

PAGE NUMBER] 

AND December 

11, 2024. 

* * * * * * 

Zhejiang Uniview Technologies Co., Ltd., a.k.a., the following one alias: 

—Uniview. 

No. 369, Xietong Road, Xixing Sub-district, Binjiang District, Hangzhou 

City, Zhejiang Province, 310051, China. 

For all items subject 

to the EAR. (See 

§ 744.11 of the 

EAR).

Presumption of denial.89 FR [INSERT FR 

PAGE NUMBER] 

AND December 

11, 2024. 

* * * * * * 

*******

******

RUSSIA ................. *****

Aviasnab LLC, Leningradskaya Street, Khimki, Moscow Region, 141400, 

Russia. 

For all items subject 

to the EAR. (See 

§ 744.11 of the 

EAR).

Presumption of denial.89 FR [INSERT FR 

PAGE NUMBER] 

AND December 

11, 2024. 

******

Joint Stock Company Gorizont, 2 ‘‘J’’ Omskaya Street, Rostov-on-Don, 

344068, Russia. 

For all items subject 

to the EAR. (See 

§ 744.11 of the 

EAR).

Presumption of denial.89 FR [INSERT FR 

PAGE NUMBER] 

AND December 

11, 2024. 

******

NtechLab LLC, a.k.a., the following two aliases: 

—NtechLab; and 

—ntech lab. 

Novolesnaya Ulitsa, Dom 2, Pomeshchenie 1/3, Moscow, 127055, Russia. 

For all items subject 

to the EAR. (See 

§ 744.11 of the 

EAR).

Presumption of denial.89 FR [INSERT FR 

PAGE NUMBER] 

AND December 

11, 2024. 

******

Technology Videoanalysis LLC, a.k.a., the following two aliases: 

—Tevian; and 

—Technologii Videoanaliza. 

Skulptora Muchinoi Ulitsa, Dom 7, Floor 1 pomeshchenie II komnata 2v, 

Moscow, 119634, Russia. 

For all items subject 

to the EAR. (See 

§ 744.11 of the 

EAR).

Presumption of denial.89 FR [INSERT FR 

PAGE NUMBER] 

AND December 

11, 2024. 

******

*******


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Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Rules and Regulations 99705 

1See 12 U.S.C. 1710 (2010), as amended by 

section 601 of the Fiscal Year 1999 Departments of 

Veterans Affairs and Housing and Urban 

Development and Independent Agencies 

Appropriations Act (Pub. L. 105–276, approved 

October 21, 1998) (‘‘FY 1999 Appropriations Act’’). 

2See Notice of FHA Accelerated Claim 

Disposition Demonstration, 67 FR 5418 (February 5, 

2002). 

3See Notice of FHA Accelerated Claim 

Disposition Demonstration, 67 FR 66038 (October 

29, 2002). 

* * * * * 

Matthew S. Borman, 

Principal Deputy Assistant Secretary for 

Strategic Trade and Technology Security. 

[FR Doc. 2024–29136 Filed 12–10–24; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Parts 203, 206 and 291 

[Docket No. FR–6051–F–03] 

RIN 2502–AJ47 

Federal Housing Administration (FHA): 

Single Family Sale Program 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Final rule. 

SUMMARY: This rule amends the 

requirements for the sale of eligible 

single family mortgage loans insured by 

the Federal Housing Administration 

(FHA) that have been assigned to the 

Secretary of the Department of Housing 

and Urban Development (HUD) in 

exchange for claim payments. The 

mortgage notes are sold, without FHA 

insurance, to qualified purchasers in a 

manner that seeks to maximize 

recoveries and strengthen HUD’s Mutual 

Mortgage Insurance Fund (MMIF) and to 

achieve HUD’s operational goals for the 

MMIF. This rule transitions the pilot 

Single Family Sale Program from a 

demonstration to a permanent program 

and removes existing Disposition of 

HUD-Acquired and -Owned Single 

Family Property regulations, which 

provided for a retired program that 

handled the sale of HUD-held single 

family mortgage loans. 

DATES: Effective: January 10, 2025. 

FOR FURTHER INFORMATION CONTACT: John 

Lucey, Director, FHA Office of Asset 

Sales, Office of Housing, Department of 

Housing and Urban Development, 451 

7th Street SW, Washington, DC 20410– 

8000; telephone: (202) 708–2625 (this is 

not a toll-free number), or toll-free: (800) 

481–9895. HUD welcomes and is 

prepared to receive calls from 

individuals who are deaf or hard of 

hearing, as well as from individuals 

with speech or communication 

disabilities. To learn more about how to 

make an accessible telephone call, 

please visit https://www.fcc.gov/ 

consumers/guides/telecommunicationsrelay-service-trs. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Under section 204 of the National 

Housing Act,1 HUD has general 

authority to pay insurance claims and 

dispose of mortgages and properties 

acquired under the FHA single family 

mortgage insurance programs. Section 

204(g) specifically grants HUD broad 

discretion to implement a range of 

disposition alternatives. The National 

Housing Act also requires that HUD 

ensure the MMIF remains financially 

sound. HUD must effectively manage 

HUD’s defaulted assets and minimize 

losses to the MMIF to carry out its 

fiduciary responsibility to ensure the 

financial soundness of the MMIF. 

Since 2002, HUD has operated a 

demonstration program to implement its 

broad disposition authority with respect 

to mortgages and properties acquired 

under the FHA single family mortgage 

insurance programs. By notice 

published in the Federal Register on 

February 5, 2002, HUD announced the 

establishment of the Accelerated Claim 

and Asset Disposition (ACD) 

Demonstration to ‘‘address any 

programmatic concerns’’ and ‘‘assess its 

success and determine whether to 

implement the ACD process on a 

permanent basis, throughout the 

country.’’ 2 On October 29, 2002, HUD 

responded to public comments and 

conducted its first sale of defaulted 

mortgages through the ACD 

Demonstration.3 HUD has continuously 

operated the ACD Demonstration for the 

purpose of paying insurance claims and 

disposing of mortgages and related 

properties acquired under the FHA 

single family mortgage insurance 

programs. 

HUD has used various names to refer 

to the demonstration program, including 

the ACD Demonstration, the Single 

Family Loan Sales (SFLS) Program, and 

the Distressed Asset Stabilization 

Program (DASP). For purposes of this 

rule, HUD will refer to the 

demonstration as the ‘‘Single Family 

Sale Program,’’ which encompasses all 

of the iterations of Single Family Loan 

Sales, including any sales HUD 

designates as part of this program. The 

final rule applies to all Single Family 

Loan Sales by HUD. 

Absent the Single Family Sale 

Program, if a borrower is unable to 

resume their mortgage payments after 

loss mitigation, the mortgagee in most 

cases would be required to foreclose the 

defaulted loan to perfect an insurance 

claim. If the property cannot be sold to 

a third party at foreclosure or a secondchance auction, the mortgagee may file 

a conveyance claim, which gives the 

property to HUD in exchange for 

receiving the FHA mortgage insurance 

claim payment. Prior to filing the 

conveyance claim, the mortgagee will 

incur legal and holding costs for which 

the mortgagee may seek reimbursement 

from HUD through claim payment. A 

property conveyed to HUD increases 

HUD’s Real Estate Owned (REO) 

inventory, posing an additional 

financial burden on the MMIF for asset 

management costs. As an alternative to 

filing a conveyance claim, for a forward 

loan that has been foreclosed, HUD will 

pay a claim without conveyance of title 

claim from the MMIF to the mortgagee 

if the borrower defaults and the 

mortgagee loses money after selling the 

house in a foreclosure or postforeclosure sale. Disposing of 

delinquent forward mortgage loans 

shortens the period between default and 

claim payment, reducing the financial 

exposure to these insurance funds for 

costs incurred after default. 

For a Home Equity Conversion 

Mortgage (HECM) that has been 

foreclosed, the mortgagee cannot file a 

conveyance claim but can sell the 

foreclosed property to a third party and 

receive claim payment if the mortgagee 

is owed more than it receives from such 

sale. For HECMs endorsed before 2009, 

HUD pays claims from the General 

Insurance (GI) Fund. For HECMs 

endorsed in 2009 or after, HUD pays 

claims from the MMIF. 

HUD’s sale of defaulted loans through 

the Program is generally intended to 

yield a recovery to the MMIF that meets 

or exceeds the recovery obtained as a 

result of a foreclosure-based claim. 

When a borrower passes away after 

assignment of a HECM, HUD incurs 

costs associated with real property 

when it is vacant or abandoned. HUD’s 

servicing tenure and attempts to 

foreclose can be delayed by title or 

jurisdictional issues and backlogs 

resulting from high volume. These 

issues result in higher servicing costs 

along with additional inspection and 

property preservation costs while the 

HECMs remain in HUD’s portfolio. After 

foreclosure, HECMs that converted to 

REO are added to HUD’s inventories, 

increasing asset management costs to 

protect and dispose of the properties. 

Disposition of eligible assigned HECMs, 


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