RD_NDMS_INDUSTRY_DAY_SLIDES_10_18_2018.pdf

Nationwide Default Management Service (NDMS)

United Stated Department of Agriculture-Rural Development (USDA-RD)

Procurement Management Division (PMD)

National Financial and Accounting Operations Center (NFAOC)

July, 2016 2

Welcome and Introductions

• Lori Lloyd, Director, Procurement Management Office (PMO), (Opening Remarks)

• Scott Beckstrand, PMO, Division Chief, Strategic Acquisition Division

• Carlene Jackson, CTR, Jack Mitchell, CTR, Contract Specialists

• Linda Hamel, Division Director of Administrative Budget Division

• Thomas Herron, Division Director of Default Management

• Natasha Stewart, Contracting Officer Representative

July, 2016 3

Agenda

• WELCOME AND OPENING REMARKS LORI LLOYD

• INTRODUCTIONS GOVERNMENT TEAM

• AGENDA/DISCLAMER/RULES OF ENGAGEMENT CARLENE JACKSON

• PURPOSE OF INDUSTRY DAY SCOTT BECKSTRAND

• REQUIREMENTS OVERVIEW THOMAS HERRON, Director of Default Management

• PROGRAM REQUIREMENTS FOR FORECLOSURE LEGAL SERVICES

--QUESTIONS

• PROGRAM REQUIREMENTS FOR PROPERTY PRESERVATION SERVICES

--QUESTIONS

• PROGRAM REQUIREMENTS FOR REO SERVICES

• --QUESTIONS

• INFORMATION TECHNOLOGY REQUIREMENTS

--QUESTIONS

Post NDMS INDUSTRY DAY SCOTT BECKSTRAND

CLOSING REMARKS

July, 2016 4

DISCLAIMER

MATERIAL PRESENTED AND DISCUSSED AT TODAY INDUSTRY DAY CONFERENCE ARE

FOR INFORMATIONAL AND PLANNING PURPOSES ONLY.

WHEN AND IF A FORMAL RFP IS ISSUED IT IS THE ONLY DOCUMENT THAT SHOULD BE

RELIED UPON IN DETERMING THE GOVERNMENT’S REQUIREMENT

THE FORMAL RFP, WHEN OR IF POSTED ON FEDBIZOPPS SUPERSEDES ANY

COMMUNICATION RECEIVED, OR PRESENTATION DELIVERED AT THIS INDUSTRY DAY

CONFERENCE

IF, AND WHEN A SOLICITATION IS RELEASED, IT WILL BE SYNOPSIZED ON THE

FEDBIZOPPS WEBSITE

July, 2016 5

RULES OF ENGAGEMENT

BEING RECORDED -- ELECTRONIC ETIQUETTE

QUESTION MUST BE SUBMITTED TROUGH THE CHAT FUNCTIONALITY AVAILABLE ON-

LINE VIA ReadyTalk

Q&A SESSION END OF EACH PROGRAM REQUIREMENT BRIEFING

WILL NOT ENTERTAIN QUESTIONS THAT ARE: CONFIDENTIAL OR PROPRIETARY

WILL ANSWER AS MANY QUESTIONS AS POSSIBLE/PRACTICAL

If you are having technical difficulties, please immediately send an email to evangeline.minor@oc.usda.gov

Presentation, Q&A, ATTENDEE LIST WILL BE POSTED ON FBO; no posting of transcript mailto:evangeline.minor@oc.usda.gov

July, 2016 6

Purpose of Industry Day

• Exchanging Information with Industry

• Improve the understanding of the Government Requirements and Industry Capabilities

• Allowing potential offerors to judge whether or how they can satisfy the Government’s requirements

• Enhancing the Government’s ability to obtain quality supplies and services at reasonable prices and increase efficiency;

• To obtain price, delivery , and other market information or capabilities for planning purposes.

July, 2016 7

Program(s) Requirements Overview

• Thomas Herron, Division Director of Default Management

July, 2016 8

NDMS OVERVIEW

• REQUIREMENT: The USDA, Rural Development, National Financial and

Account Operations Center (NFAOC), located in St. Louis MO services over

250,000 Single Family Housing Loans. These Single Family Housing (SFH) loans are located in rural communities across the United States of America including Puerto Rico and all US Territories. These homes are modest in nature with homeowners who are low income and unable to secure financing from a private sector lender.

July, 2016 9

Questions

July, 2016 10

Program Requirements for Foreclosure Legal Services

Background:

• 1996 – Rural Development Centralized all servicing activities to Saint Louis, Missouri and created a servicing center for all Single Family Direct Loans. The servicing that remained at a local level was:

• Foreclosures

• REO

• Property Preservation

• Lien releases

• 2007 – RD piloted the centralizing servicing of Foreclosure and REO accounts from select states.

• There are now 29 states where the Foreclosures and REO are managed from Saint Louis.

July, 2016 11

Services

• Current methods for servicing foreclosure accounts:

• Multiple handoffs

• Limited process consistency

• Utilizing older tracking technology

• Legal aspect of foreclosures handled differently by state:

• Assistant US Attorneys handles some Judicial foreclosures

• Private Attorneys handle some Judicial foreclosures

• Field Offices handle some Non Judicial foreclosures

• Private Attorneys handle some Non Judicial foreclosures

July, 2016 12

Services

State Portfolio Centralization

Status Total # FCL Accounts

Non-Judicial Judicial NFAOCPrivat e Atty Total FCL

UPB

AK 1,003 46 X $5,912,874.26

AL 7,394 Centralized 957 X X $48,886,967.06

AR 6,415 Centralized 853 X X $42,887,679.31

AZ 4,000 111 X $6,395,584.93

CA 9,622 160 X $13,258,723.12

CO 2,342 314 X $25,877,649.24

CT 732 Centralized 78 X $8,287,132.76

DE 1,170 Centralized 204 X X $26,332,448.58

FL 9,437 1,218 X $69,737,162.29

GA 8,633 Centralized 853 X X $47,303,842.29

HI 921 79 X X $8,793,791.36

IA 4,355 Centralized 441 X X $27,891,752.37

ID 2,009 48 X $3,230,348.38

IL 7,764 785 X $31,110,420.51

IN 5,090 Centralized 510 X X $35,527,610.76

KS 2,304 170 X $10,029,089.54

KY 10,026 Centralized 967 X $50,308,681.68

LA 7,322 Centralized 495 X $29,499,115.04

MA 1,810 Centralized 264 X $27,516,084.20

MD 1,888 Centralized 280 X X $29,223,139.19

ME 4,762 Centralized 690 X $56,233,527.16

MI 6,770 Centralized 158 X $10,239,505.42

MN 3,035 Centralized 232 X $21,631,573.09

MO 5,951 227 X $9,486,618.86

MS 14,746 Centralized 2,120 X X $73,411,566.44

MT 1,411 44 X X $2,272,120.17

NC 12,782 Centralized 1,216 X $78,435,375.38

ND 822 Centralized 54 X $4,102,784.03

NE 1,514 Centralized 94 X X $4,772,264.16

NH 1,788 Centralized 56 X $4,615,941.10

State Portfolio Centralization

Status Total # FCL Accounts

Non-Judicial Judicial NFAOCPrivat e Atty Total FCL

UPB

NJ 1,641 346 X $29,527,103.02

NM 2,905 Centralized 202 X $11,912,357.65

NV 724 11 X $1,019,294.98

NY 4,724 272 X $18,022,587.91

OH 5,794 158 X $11,545,687.21

OK 3,581 264 X $13,667,782.96

OR 2,667 154 X $11,061,706.63

PA 6,276 Centralized 364 X $26,476,252.83

PR 10,760 854 X $31,529,015.66

RI 330 Centralized 43 X $5,887,433.91

SC 7,615 Centralized 596 X $30,337,960.66

SD 1,533 Centralized 72 X $4,252,561.70

TN 8,039 Centralized 738 X X $43,168,596.27

TX 15,057 1,612 X $79,370,399.67

UT 2,505 51 X $4,584,675.31

VA 5,766 Centralized 435 X $27,567,559.34

VI 752 64 X $4,361,704.16

VT 1,766 Centralized 177 X $14,477,294.12

WA 3,614 Centralized 168 X X $20,960,853.25

WI 3,099 Centralized 129 X $9,635,760.24

WV 4,195 589 X $20,063,122.73

WY 791 26 X $1,704,505.76

Totals 241,952 21,049 27 30 8 $1,234,345,588.65

July, 2016 13

Services

Private Attorneys – review and revision of the 1990 MOU between FmHA and OGC completed – the new MOU allows private attorneys to handle Section 502 litigation activities, including judicial foreclosures.

• OGC participates in the initial selection of a private attorney, quality control and unusual or important cases.

July, 2016 14

Services

Legal Services Requested:

Collection of 42 U.S.C. 1480 (d)-related claims and obligations out of or under any mortgage, lease, contract, or agreement including:

1. Prosecution and defense of foreclosure, bankruptcy, and related litigation.

2. Obtaining possession of real property, securing collateral, and enforcing any deficiency and/or other judgment(s).

All litigation shall be prosecuted in the federal or state court appropriate for the services designated in the Task Order.

July, 2016 15

Services

Description of Services:

a. Foreclosure – Judicial Foreclosure or Non-Judicial Foreclosure

b. Bankruptcy Representation – Chapter 7 or Chapters 11, 12 or 13.

c. Possessory Action post foreclosure

d. Foreclosure Mediation Program Representation

July, 2016 16

July, 2016 17

Property Preservation Services Requirement

• Rural Development currently has a nationwide vendor handling 29 states property preservation needs. The following is an abbreviated list of functions performed:

• Monthly Property Inspections

• Grass cuts

• Winterization

• Securing Property

• Utility Maintenance

• Demolition

• Repairs

• Currently 40% of Foreclosure loans are vacant requiring Property Preservation services

July, 2016 18

Property Preservation Services Requirement

• Rural Development is looking for a vendor with demonstrated ability to provide Property Preservation services without delay or interruption on the entire Single Family Housing portfolio located throughout rural America, Puerto Rico and all US Territories.

• Rural Communities rely of Rural Development to properly maintain our vacant homes.

• Rural Community Leaders are quick to reach out to elected officials and Agency officials when issues aren’t addressed quickly or consistently.

July, 2016 19

July, 2016 20

Program Requirements for REO Services

The Housing and Community Development Act of 1992, which amended the McKinney Homeless Assistance Act, (42 USD 11408a) (McKinney Act) mandates that REOs be provided on a priority basis to program-eligible families. This is the basis for the classification of REOs as “Program” or “Non-Program” under program regulations with the intent clearly to use RD’s REO properties to increase housing opportunities for lower income rural Americans.

July, 2016 21

• Currently:

• 27 States Centralized – Under a Pilot program, Rural Development currently utilizes the Department of Veterans Affairs (VA) to manage REO properties. This is accomplished through an Inter Agency Agreement (IAA) under the Economy Act.

This agreement is scheduled to expire on September 30, 2019 and includes Preservation, Marketing and Sales Real Estate Owned Properties.

• Rural Development has seen significant improvement in our days in inventory under the IAA with VA.

• There are approximately 1100 REO properties in our portfolio.

July, 2016 22

Rural Development is seeking to replicate the success achieved under the IAA with the VA. The services needed for the REO properties for any and all REO Properties:

• Securing

• Maintaining

• Marketing

• Repairing

• Selling

July, 2016 23

July, 2016 24

IT Requirements

• Shall promote, secure Information Exchange with RD and its Industry Stakeholders.

• Shall provide RD with access to an information management system(s) for the services identified. The system(s) shall generate all property and loan data for use by RD including, but not limited to, receivables, accruals, collections, etc., in addition to interfacing with RD systems such as FiServe/ Mortgage SERV, Financial Management Systems, etc.

July, 2016 25

July, 2016 26

POST NDMS INDUSTRY DAY

• CUTOFF FOR QUESTIONS - WEDNESDAY, OCTOBER 24, 2018, 4:30PM,

EST – carlene.Jackson@wdc.usda.gov and scott.Beckstrand@wdc.usda.gov

• CUTOFF CAPABILITY STATEMENTS – WEDNESDAY, OCTOBER 31, 2018,

1:00 PM EST

mailto:carlene.Jackson@wdc.usda.gov mailto:scott.Beckstrand@wdc.usda.gov

July, 2016 27

July, 2016 28

Closing Remarks