HECM Mortgage Support Services

THIS IS A SOURCES SOUGHT NOTICE ONLY. This is not a request for offers, quotes or proposals. This notice does not represent a commitment by the Government to issue a solicitation or award a contract. This is a market research tool only to determine the capability of potential sources. The Department of Housing and Urban Development (HUD) seeks to establish a contract under NAICS Code 522390 -- Other Activities Related to Credit. This contract will support the National Servicing Center, which is issuing this Request for Information (RFI) in order to solicit responses from capable sources and capability statements to ensure sufficient competition exists to meet the government's requirements. Teaming arrangements and joint ventures will be considered for any subsequent procurement based on the Government's market research, provided that the prime contract is awarded to an applicable small business and that small businesses provide fifty-one percent or more of the support. Please review the General Scope of Work and provide your feedback to Christopher Stuart at [email protected]. BACKGROUND The services contemplated in this sources sought are required to assist the United States Department of Housing and Urban Development (HUD) to obtain support for performing nationwide comprehensive reverse mortgage loan servicing activities according to mortgage industry loan servicing standards. The Federal Housing Administration (FHA), an organizational unit within HUD, administers the single-family mortgage insurance program. Although primarily a mortgage insurer, FHA has occasion to become the holder of primary mortgages through the assignment of HECM mortgages. These loans and notes are serviced for HUD by a private sector Contractor. FHA Insured HECM loans, commonly referred to as reverse mortgages, are designed to enable elderly homeowners to convert the equity in their homes to monthly streams of income and/or lines of credit. To guarantee continued payments to the borrower, should the lender fail to make the required payments, a second mortgage in HUD's name is executed and recorded subsequent to the first mortgage. FHA Assigned HECM loans are FHA insured first mortgage loans in good standing, and upon reaching a specified threshold, were assigned to HUD for continued loan servicing for the life of the loan. Before acceptance of assignment of the first mortgage, HUD ensures that there is clear title from the lender to HUD. Following assignment, monthly or periodic payments are made by HUD's Contractor to the borrower. The Contractor also monitors the status of tax and hazard insurance payments and initiates foreclosure of the loan upon the death or non-compliance of the borrower. The Housing and Community Development Act of 1987 (P.L. 100-242, February 5, 1988) established and subsequent legislation has amended, a Federal mortgage insurance program, Section 255 of the National Housing Act, 12 USC §1715z-20, to insure home equity conversion mortgages (HECM). HUD regulations governing the program are contained in 24 CFR 206. Handbooks guidelines are in 4235.1 REV-1; 4330.2 REV-1&2; 4330.1 REV-5, Chapter 13; 4335.2; and 4310.5 REV-2. Other guidance is contained in applicable Housing Notices, Mortgagee Letters, subsequent publications regarding HECM loans, as well as in the verbiage in the Note, Mortgage, and the Home Equity Conversion Loan Agreement. HECM loans are serviced using the Home Equity Reverse Mortgage Information Technology (HERMIT) system. Additionally, HUD's Contractor interfaces with a number of HUD information management systems. HUD utilizes a variety of systems to store information related to the approximately 650,000 active HECM loans. The Contractor shall regularly verify data in HERMIT, SMART, or any replacement system, with SAMS, SFIS, SFISnet and FHAC. The current contract is a Fixed Price contract currently awarded to Novad Management Consulting, Inc. DEFINITIONS CONTINUITY OF OPERATIONS PLAN (COOP) - A formalized plan for the continuation of business operations in the event of a disaster. CONTRACT - A written mutually binding legal relationship obligating the seller to furnish the supplies or services and the buyer to pay for them. CONTRACTING OFFICER (CO) - A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. CONTRACTOR - The individual, partnership, corporation, or other entity, which, in addition to HUD, is the party subject to the terms and conditions of this contract. KEY PERSONNEL - Personnel specifically considered essential to the work being performed under this contract, pursuant to HUDAR 2452.237-70, Key Personnel. PERFORMANCE EVALUATION - The GTR/GTMs record of the Contractor's performance, under the contract, will be used for consideration of exercising an option and future source selection purposes by other Federal departments and agencies PERFORMANCE REQUIREMENTS - The service level that separates acceptable performance from unacceptable performance of a task according to the Inspection of Services clause. PERFORMANCE REQUIREMENTS SUMMARY - A listing of the performance requirements under the contract that are to be evaluated by the Government on a regular basis; performance standards for these requirements, and surveillance methods to be used to determine if performance standards are met (and optionally, any maximum payment for meeting the AQL level, and any deduction from payment for not meeting the AQL). PERFORMANCE STANDARD - The Contractor's performance level required by the Government. This is also known as AQL, Acceptable Quality Level. QUALITY ASSURANCE - A planned and systematic pattern of all government actions to provide confidence that adequate technical requirements are established and services conform to established technical requirements to assure that satisfactory performance is achieved. QUALITY CONTROL - Those actions taken by a Contractor to monitor performance to ensure conformance to the contract requirements. SECRETARY-HELD/SECRETARY OWNED - Any mortgage or property wherein the Department of HUD has an interest. The asset is held in the name of the Secretary of Housing and Urban Development. SMART-The system developed to house all of HUD's loan programs serviced by the National Servicing Center except for Insured and Assigned HECM mortgages. HECM - Home Equity Conversion Mortgage HERMIT - Home Equity Reverse Mortgage Information Technology - a business service provider used to service and track servicing activities for HECM loans. The servicing module in HERMIT allows HUD and servicers to effectively service all HECM loans from initial loan setup through the claims process. GENERAL DESCRIPTION OF WORK The Contractor shall utilize industry standard tools, manual preparation and/or interfaces with HUD's business service providers in performing the requirements of this contract. Loan servicing activities include those financial and non-financial actions necessary to make sure that the portfolio of loans are managed and serviced in accordance with all applicable governing laws and in accordance with departmental policies, procedures and regulations. The major activities include: Review title; accept/deny assignment packages according to HUD guidelines by assuring compliance with FHA regulations and policy, as well as maintaining documented quality control measures; Process and disburse repair escrow and/or tax and insurance payments as well as payments made to HECM mortgagors as monthly mortgage payments and/or line of credit payments; Perform and provide evidence of monthly monitoring of death notices; Preparation and mailing of monthly account statements to all HECM borrowers; Perform Occupancy Inspections and Annual Re-certifications per HUD guidelines, and clearly track and document at loan level; Ensure that Assigned HECM portfolio tax and property charges are monitored and paid in accordance with policy guidance for HECM loans; Perform in depth accounting functions and payment collection according to the Fair Debt Collection Practices Act; Preparation and recording of releases /and or satisfaction of mortgages as well as missing mortgage retrieval; Review and make determinations on a broad spectrum of servicing requests from Mortgagees, including but not limited to, extensions, short sales, due and payable requests, and partial releases; Retain legal counsel on staff to assist with legal notices and determination of other actions needed such as, but not limited to, bankruptcy, title remediation and foreclosure; Perform default management, to include all aspects of collections, loss mitigation (e.g. deed in lieu of foreclosure) and foreclosure; Perform expanded customer service support, technical assistance, and assistance to mortgagors and lenders in a consultative manner, specifically in the area of Reverse Mortgages and Reverse Mortgage Loan Servicing issues and support services to HUD's National Servicing Center. Contractor employees (including subcontractors) who will need to have access to HUD information systems and/or business service providers (e.g. SAMS or SMART) must undergo a background investigation. See Clause HUDAR 2452.239-70 Access to HUD Systems. CONTEMPLATED PERFORMANCE METRICS 1. QUALITY OF PRODUCT OR SERVICE 2. SCHEDULE/TIMELINES OF PERFORMANCE 3. MANAGEMENT AND BUSINESS RELATIONS CONTEMPLATED REPORT REQUIREMENTS 1. Accounting Reports 2. Trend Reports 3. Inventory Reports 4. Customer Service Reports 5. Telecommunication Status Reports 6. Information Records Reports 7. Summary Reports 8. Death Notice and Tax Reports 9. Ad Hoc Reports 10. Quality Control Reports CONTEMPLATED MAGNITUDE OF THE PROJECT $8 to $10 Million Dollars or $50 Million Dollars if cumulative CONTEMPLATED PLACE OF CONTRACT PERFORMANCE Tulsa or Oklahoma City, Oklahoma RESPONSE REQUESTED Small Businesses are encouraged to respond. This synopsis is a market research tool being used to determine the availability and capability of potential sources prior to determining the method of acquisition and whether the government will proceed with this acquisition. The Government will not pay for any information solicited. If a contract is ultimately pursued, responses to this synopsis will be used to aid in determining whether the acquisition is set-aside for small business or in establishing small business subcontracting goals. All qualified firms are encouraged to respond. The capability statement shall address, at a minimum, the following for the past three years: 1. Name and address of company and or companies (if there is a teaming arrangement or joint venture); 2. Technical expertise relevant to the requirement; 3. Technical approach relevant of the requirement (1 to 2 paragraphs); 4. Management approach relevant to the requirement (1 to 2 paragraph); 5. Corporate experience relevant to the requirement (1 to 2 paragraph); 6. Indicate if you are a small business or any other socio-economic categories that apply to your firm under the designated NAICS code; 7. Relevant past performance. Your capability statement needs to include a list of three customers (Government/non-Government) within the past three (3) years highlighting similar work in nature, scope, complexity, and difficulty and a brief description of the scope of work. Your submission for relevant past performance must include for each customer: • Contract name; • Contracting Agency or Department, POC and contact information; • Yearly contract value (in $); • Whether your firm was the prime or a subcontractor; • Period of performance; • Description of work and how it relates to the requirements. Interested firms responding to this market survey must provide a capability statement demonstrating their experience, skills and capability to fulfill the Governments requirements for the above. The capability statement shall be in sufficient detail, but not exceed 5 pages TOTAL, so that the Government can determine the experience and capability of your firm to provide the requirements above. Please specify one primary and one alternate Point of Contact (POC) within your firm, including telephone numbers and email addresses in case clarifications of your submission are needed. Only electronic copies of capability statements will be accepted and should be emailed to: [email protected]. The e-mail shall contain the following subject line: Response to Sources Sought Notice - Reverse Mortgage Support Services Requirement. The Government may use the responses received to determine whether to proceed with the acquisition as a set-aside, or in the absence of a least two small business responses to this notice, may determine to proceed with a full and open competition. This decision and whether to proceed with the acquisition is at the sole discretion of the Government. All interested contractors should submit their capability statements by 4:00 pm Mountain Standard Time on April 15, 2016, attention POC Christopher Stuart. Late responses will not be considered.