In a March 2016 letter, Senators Jeb Hensarling and Richard Shelby expressed concern that changes contemplated by the Federal Housing Finance Agency and US Department of Housing and Urban Development (HUD) to their nonperforming loan sales programs would reduce private sector participation. This letter quoted a January 2016 report by Laurie Goodman and Dan Magder that proposes that private sector participation in the bulk note sales program has reduced the potential loss to taxpayers and helped homeowners. This note explains how HUD’s recent changes to the program are consistent with the improvements suggested in the January 2016 report and do not threaten the Mutual Mortgage Insurance Fund or taxpayers.