HUD has been selling nonperforming loans insured by FHA since 2010, but it has greatly stepped up the pace of these sales since 2013. In selling these loans, HUD aims to improve outcomes for borrowers. In June 2012, the program was renamed the Distressed Asset Stabilization Program or (DASP). Also in 2012 HUD issued its first pool of Neighborhood Stabilization Outcome or (NSO) loans, which were concentrated in designated areas. Investors who purchase NSO pools must ensure that at least 50 percent of the loans achieve one of HUD’s approved outcomes. Subsequently to creating the NSO pools, HUD has also created NSO pools available to bid by HUD approved non-profits only allowing non-profits to engage in the loan sale transactions without competing in against large investors. One lesser known and very important component of DASP is the ability for HUD to sale direct to approved buyers without having to participate in an auction. Joining the broadcast to discuss DASP and the Direct Sale process is Sennai Cham. Sennai is a Financial Analyst in the Asset Sales Office at HUD where he assists with developing and executing auctions of severely delinquent loans through DASP.