232 Loan Underwriting and Closing PWS Draft.doc

Performance Work Statement (PWS)

232 Loan Underwriting and Closing

11/16/2021

Version 1.0 4Vision Statement

1 General Information

1.1 Introduction

1.2 Background

1.3 Constraints

1.4 Description of Services

1.5 Non-Personal Services

1.6 Period of Performance

1.7 Place of Performance

1.8 Hours of Operation

1.9 Special Qualifications

1.10 Post Award/Kickoff Conference

1.11 Status Meetings

1.12 Contractor Travel

1.13 Transition In

1.14 Transition Out

2 Definitions and Acronyms

2.1 Definitions

2.2 Acronyms

3 Government-Furnished Property and Services

3.1 Government Services

3.2 Facilities

3.3 Equipment

3.4 Materials

3.5 Quality Assurance (QA)

4 Contractor-Furnished Items and Services

4.1 Facilities

4.2 Equipment

4.3 Material

4.4 Contractor Responsibilities

4.5 Contractor Personnel

4.6 Identification of Contractor Employees

4.7 Quality Control

4.7.1 Quality Control Plan

5 Specific Tasks

5.1 Loan Underwriting Due Diligence

5.2 Loan Closing

5.3 Monitoring after Loan Closing/Post-Loan Closing Administration

5.4 Regular Reports

5.5 Transition Support

6 Deliverables

6.1 Quality Control Plan

6.2 Acceptance Criteria

7 Performance Requirements Summary 8 Related Documents

Performance Work Statement (PWS) 232 Loan Underwriting and Closing Vision Statement

The vision of this requirement is to provide loan underwriting and loan closing services for the Office of Residential Care Facilities (ORCF). This includes monitoring of loans through to full completion, as well as the submission of routine reports. All of these services are to support the mission of ORCF and HUD.

1 General Information

1.1 Introduction

The U.S. Department of Housing and Urban Development (HUD) - Office of Healthcare Programs is seeking Contractor support for project management, loan insurance underwriting, loan closing and monitoring after loan closing/post-loan closing administration for FHA loans under Sections 232/223(f) refinancing or purchase of existing residential care facilities and 232/223(a)(7) refinancing of FHA insured mortgages. Contractor support is for the Office of Residential Care Facilities (ORCF). These services are mission critical and considered to be vital to the program office and are required to support FHA mortgage insurance processing on an as-needed basis. Therefore, each loan application may not require all the specific tasks/scope of work identified in the PWS. For example, the Contractor may be assigned the loan underwriting/processing but not the closing support services. The loan applications being processed are ongoing current requests and backlog files that are susceptible to causing unacceptable delays in processing applications for FHA mortgage insurance.

The objective is to decrease the current backlog of applications and process the loan application within the established timeframes: thirty (30) calendar days for 232/223(a)(7) and sixty (60) calendar days for 232/223(from the loan assignment date from the originating ORCF Workload Manager, in accordance with the ORCF Handbook.

Office of Residential Care Facilities HUD's FHA Section 232 program is authorized by Section 232 of the National Housing Act (12 U.S.C. 1715w). It is administered by the Office of Residential Care Facilities (ORCF) to insure mortgage loans to facilitate the construction and substantial rehabilitation of nursing homes, intermediate care facilities, board and care homes, and assisted-living facilities. Section 232/223(f) allows for the purchase or refinancing with or without repairs of existing projects not requiring substantial rehabilitation. The Section 232/223(a)(7) program offers a streamlined refinancing option for healthcare properties already insured by FHA and can reduce debt service and free up operating income.

These programs allow for long-term, fixed rate financing up to 40 years for new and rehabilitated properties and up to 35 years for existing properties without rehabilitation that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities.

1.2 Background

In recent years, Federal Housing Authority (FHA) has seen an increase in its volume of FHA insurance products due to the decrease in available financial credit extended by commercial banks and other financial institutions. The success of these products has increased their use, creating a backlog of processing underwritten applications nationwide. This backlog has caused Department of Housing and Urban Development (HUD) to experience unacceptable delays and extended processing time. HUD has developed a standard operating procedure, which contains reference tools in the Healthcare Mortgage Insurance Handbook 4232.1 ("ORCF Handbook), checklists and punch lists for processing and underwriting Sections 232/223(a)(7) and 232/223(f) applications. These checklists and punch list are used to assemble the loan application package.

There is a continuing need for Contractor support services. The need for contractor support is also due to production loan volume is up from FY19 FY21. Target response/processing times are lagging due to capacity. Contractor support for loan underwriting is required to relieve the staffing shortage (which is expected to continue into the foreseeable future) and to address the increase in substantial loan application volume.

Office of Residential Care Facilities (ORCF) To streamline ORCF's application process, HUD developed a Lean process in 2008 for Section 232 applications. HUD's new Lean process employs a standardized work product and process, Exhibits A-K, to obtain a consistent, timely result. ORCF's Standardized Punch Lists, Exhibits will be available on ORCFs portal and reviewed evaluated by ORCFs Workload Managers or Subject Matter Experts for approval and submission to ORCFs Loan Committee (LC) for consideration of authorization of the Firm Commitment. These policies are established in the ORCF Handbook. Applications for mortgage insurance are assembled and underwritten by FHA-Approved Lenders before being submitted to HUD for processing of the Firm Commitment.

1.3 Constraints

The services identified in this PWS will adhere to the rules, regulations, laws, standards, and conventions identified by HUD as well as within the Federal Government. Constraints include the following:

The Contractor shall adhere to the rules, regulations, laws, standards, and conventions identified by HUD as outlined in Section 207 and Section 232 of the National Housing Act.

The Contractor is required by law to abide by all applicable regulations, publications, manuals, guidebooks, handbooks, and policies, including administrative procedures to adequately perform loan support services for HUDs sections 232/223(f) and 232/223(a)(7) FHA insurance-backed loans.

The Contractor shall strictly adhere to and complete HUDs ORCF Handbook, punch list and/or checklist documents for processing, underwriting, and closing the assigned insured loan applications. The punch list shall assist the Contractor with addressing items of concern during the processing, underwriting, and closing of the insured loan applications. The HUD ORCF Workload Managers, Subject Matter Experts or Sub-COR will answer questions the Contractor may have regarding current Mortgagee Letters.

The Contractor shall obtain the pay.gov payment confirmation fee (e.g. application and closing) receipt from the Lender for all the required programs fees for the mortgage insured loan. The Lender will utilize the online payment system to pay all Healthcare Programs Fees at pay.gov:

https://www.pay.gov/public/form/start/67950760.

The Contractor shall abide by the published Mortgagee Letters and Handbooks which may be accessed through the website at:

https://www.hud.gov/program_offices/administration/hudclips

The Contractor shall abide by HUD regulations as outlined in 24 CFR Part 207 of the National Housing Act which may be accessed through the website at: https://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR

The Contractor shall abide by polices established in the ORCF Handbook at:

https://www.hud.gov/program offices/administration/hudclips/handbooks/hsgh/42321

The Contractor shall abide by the ORCF Email Blast Updates at: https://www.hud.gov/federal_housing_administration/healthcare_facilities/residential_care

1.4 Description of Services

HUD seeks a Contractor that shall provide:

· Loan Underwriting Due Diligence

· Loan Closing

· Monitoring after Loan Closing/Post-Loan Closing Administration

· Regular Reports

· Transition Support

Detailed descriptions of specific tasks are provided in Section 5.

1.5 Non-Personal Services

The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees. It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are of the nature of personal services, or give the perception of personal services.

If the Contractor believes that any actions constitute, or are perceived to constitute personal services, it shall be the Contractor's responsibility to notify the Contracting Officer (CO) immediately. These services shall not be used to perform work of a policy, decision making, or management nature, i.e. inherently Government functions. All decisions relative to programs supported by the Contactor shall be the sole responsibility of the Government.

1.6 Period of Performance

The Period of Performance shall be for one 12-month base period and four 12-month optional periods.

1.7 Place of Performance

The services to be performed under this contract shall be performed at the Contractors facility.

1.8 Hours of Operation

The Contractor is responsible for providing services between the hours of 08:30 am to 5:30 pm Monday thru Friday except for Federal holidays or when the Government facility is closed due to local or national emergencies, administrative closing, or similar Government directed facility closings. Weekly hours shall not exceed a forty (40) hour work week and a typical work day will be 8 hours each day Monday through Friday. The Government reserves the right to change hours of operation or restrict contractor access. Work outside of these daily hours is prohibited without Contracting Officer approval. Government agencies will not be available during scheduled holidays, inclement weather, weekends, and after duty hours.

The Contractor shall at all times maintain an adequate workforce for the uninterrupted performance of all tasks defined within the contract when the Government facility is not closed for the above reasons. When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce is essential.

1.9 Special Qualifications

The Contractors underwriters are required to have one-year experience in FHA mortgage insurance underwriting, processing, and loan closing for healthcare programs in accordance with ORCF guidance. Underwriters may obtain FHA underwriting experience working for supervised or unsupervised lenders with experience underwriting FHA loans. This includes but not limited to review of mortgage insurance application; third-party reports; the lenders underwriting recommendations and either concur with the lenders recommendations for approval or rejection of the application based on the mortgage insurance underwriting in the ORCF Handbook; and complete the loan insurance acceptance for processing or rejection process within the HUD established timeframes. The Contractors underwriters shall abide by all applicable regulations, publications, manuals, guidebooks, handbooks and policies and procedures in the performance of this contract.

1.10 Post Award/Kickoff Conference

The Contractor shall attend any post award conference convened by the contracting activity or contract administration office in accordance with FAR Subpart 42.5. The Government intends to convene a Post Award Conference with the Contractor within ten business days after contract award. The Contracting Officer will notify the Contractor of the specific date, location, and agenda within five business days after contract award.

1.11 Status Meetings

The Contracting Officer, Contracting Officers Representative (COR) and other Government personnel, as appropriate may meet periodically with the Contractor to also review Contractor performance, requirement status, etc. At these meetings, the Contracting Officer will apprise the Contractor of how the Government views the Contractor's performance or progress of the requirement. The Contractor will apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the Government. Post Award Conference and subsequent meetings may be held via teleconference.

1.12 Contractor Travel

Prior to travel, the Contractor shall coordinate with and receive Government authorization from the COR for all travel. Reimbursement of travel costs will be in accordance with the Federal Travel Regulation and in accordance with FAR 31.205-46. The Contractor shall travel using the lower cost mode transportation commensurate with the mission requirements. When necessary to use air travel, the Contractor shall use the tourist class, economy class or similar lodging accommodations to the extent they are available and commensurate with the mission requirements. HUD will not reimburse Contractor's local travel. Local travel is defined as travel within fifty (50) miles of Washington, DC. All other travel will be reimbursed on a cost reimbursable basis; no profit or fee will be paid.

1.13 Transition In

The Contractor shall, upon the Contracting Officer's written notice, furnish Transition-In services as required. As a successor, the Contractor shall have sufficient personnel on board during the 30-day Transition-In period to ensure a smooth transition with the incumbent Contractor. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to the program is minimized. During the Transition-In period, the Contractor shall become familiar with the requirements in order to commence full performance of services by the end of the contract Transition-In period. Transition-In is not required if the successor Contractor is the incumbent Contractor.

1.14 Transition Out

To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the Contractor shall have sufficient personnel on board during the 60-day Transition-Out period. The incumbent Contractor shall ensure a smooth transition with the successor Contractor during the Transition-Out period, prior to completion of contractual performance. The incumbent Contractor shall aid the successor in the development of plans, procedures, and methods for the assumption of all on going work. The Contractor shall provide an orderly transition of work acceptance and accomplishment, such that full control by the successor Contractor is achieved by the end of the new contract Transition-In period.

2 Definitions and Acronyms

2.1 Definitions

Business/Work Days - Every official work day of the week which are days between and including Monday to Friday. This does not include public holidays and weekends.

Calendar Day - Any day of the week.

Contractor - A supplier or vendor awarded a contract to provide specific supplies or service to the Government. The term used in this contract refers to the prime.

Contracting Officer (CO) - A person with authority to enter into, administer, and/or terminate contracts and make related determinations and findings on behalf of the Government. Note: the only individual who can legally bind the Government.

Contracting Officer's Representative (COR) - An employee of the U.S. Government appointed by the Contracting Officer to perform contract administration activities in regard to technical issues. This individual has authority to provide technical direction to the Contractor as long as direction is within the scope of the contract, does not constitute a change and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract.

Defective Service - A service output that does not meet the standard of performance associated with the Performance Work Statement.

Deliverable Anything that can be physically delivered, but may include non-manufactured things such as meeting minutes or reports.

Government Furnished Property (GFP ) - Government-furnished property means property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

Performance Requirements Summary (PRS) - A listing of the performance requirements under the contract that are to be evaluated by the Government on a regular basis, performance indicators for these requirements, performance standards for these requirement and surveillance methods to be used to determine if performance standards are met.

Performance Standard - The Contractor's performance level required by the Government.

Performance Work Statement (PWS) - A statement of work for performance based acquisitions that describe the required results in clear, specific and objective terms with measurable outcomes.

Physical Security - Actions that prevent the loss or damage of Government property.

Quality Assurance (QA) - Policies and procedures adopted by the Government to ensure that supplies and services acquired under Government contracts conform to the contracts quality requirements.

Quality Assurance Surveillance Plan (QASP) - A plan describing how the agency will survey, observe, test, sample, evaluate and document the Contractor's performance in meeting critical performance standards identified in the contract.

Quality Control (QC) - All necessary measures taken by the Contractor to assure that the quality of an end product of service shall meet contract requirements.

Service Contract - A contract that directly engages the time and effort of a Contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

Subcontractor - Any person , other than the prime Contractor, who offers to furnish or furnishes any supplies, material, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract, and any person who offers to furnish or furnishes general supplies to the prime contractor or a higher tier subcontractor. The Government does not have privity of contract with a subcontractor.

Work Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

AQL - Acceptable Quality Level ARAMS - Automated Renewal and Amendment System

BAA - Business Area Analysis Study

CBT - Computer-Based Training

CCB - Change Control Board

CCMB - Configuration Change Management Board

CMMI - Capability Maturity Model Integration

CFO or OCFO - Office of the Chief Financial Officer of HUD

CFR - Code of Federal Regulations

CIO or OCIO - Office of the Chief Information Officer of HUD

CO - Contracting Officer

COR - Contracting Officer's Representative

COR - Contracting Officer Representative

COTS - Commercial Off-the-Shelf

CPO - Office of the Chief Procurement Officer of HUD

EST - Eastern Standard Time (U.S.)

ETC - Estimate to Completion

GAO - U.S. General Accounting Office

HUD - U.S. Department of Housing and Urban Development

HUDAR - HUD Acquisition Regulation

HUD/ISG - Internet Services Group within the Telecom Processing Division

HUD Web - HUDs Intranet Web Site and related WEB pages.

IG or OIG - Inspector General (Office of)

IT - Information Technology

IV&V - Independent Validation and Verification

LOOCS - Line of Credit Control System

OCPO - Office of the Chief Procurement Officer

OIG - Office of Inspector General

OMB - Office of Management and Budget

PL Public Law

PM - Project Manager

POC - Point of Contact

PPM - Project Planning and Management

QA - Quality Assurance

QASP - Quality Assurance Surveillance Plan

QCP - Quality Control Plan

SF - Standard Form

TBD - To be determined

U.S.C - United States Code

3 Government-Furnished Property and Services

The Contractor shall ensure accurate control and accountability of all Government-Furnished Property in accordance with the terms and conditions of this contract. The Government will furnish, at no cost to the Contractor, the GFP shown below.

3.1 Government Services

The Government will provide a four (4) day virtual ORCF training class for the Contractor and key personnel employed by the Contractor. The government will also provide database access for all required systems to support loan underwriting services.

3.2 Facilities

No facilities will be provided by the Government.

3.3 Equipment

No equipment will be provided by the Government.

3.4 Materials

The Government will provide:

The HUD POC or the ORCF's Workload Manager/Subject Matter Expert will independently provide the required materials using a SharePoint site, a portal, or other electronic method of the loan applications to the Contractor for processing. HUD will provide ORCF Handbook, checklists and ORCF's Standardized Punch Lists, Exhibits A-K documents to be used in conjunction with processing, underwriting, and closing each application and the URLs to these documents are provided in the Related Documents section of this PWS. The HUD POC or the ORCF Workload Manager will provide the most current processing checklists and punch lists including a list of the documents required for processing and underwriting a Section 232/223(a)(7) and 232/223(f) loan applications. ORFC standardized processing punch lists, ORCF's Standardized Punch Lists, Exhibits A-K, are posted on ORCFs SharePoint site.

All punch list, checklist materials and loan processing documents will remain the property of the Government. The punch list and checklist materials will be returned to the COR or SCOR upon request or be returned at the end of the contract period. The Contractor shall only conduct business with the CO, COR, Subordinate COR, project manager, HUD POC or the ORFC Workload Manager/Subject Matter Expert as it relates to project management support, loan insurance underwriting, loan application closing support and post-loan closing administration services for FHA loans under Sections 232/223(f) and 232/223(a)(7).

All HUD provided information including Lender loan application files as well as Contractor analyses, reports, reviews, information exchange materials, approval documents, and electronic documents remain the property of HUD.

3.5 Quality Assurance (QA)

The Government shall evaluate the Contractor's performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the Contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance, and the minimum acceptable quality level.

4 Contractor-Furnished Items and Services

The Contractor shall furnish, all facilities, equipment, and supplies required to perform the work under this contract that are not listed under Government-Furnished Property and Services.

4.1 Facilities

The Contractor shall furnish all facilities required to perform the work under this contract outlined within the PWS.

4.2 Equipment

The Contractor shall furnish all equipment required to perform the work under this contract outlined within the PWS.

4.3 Material

The contractor shall furnish all material required to perform the work under this contract outlined within the PWS, with the exception of the Government-furnished data, materials, and reports listed in Section 3.

4.4 Contractor Responsibilities

The Contractor shall only conduct business with designated Government personnel listed as points of contact (POCs). Names of authorized personnel shall be provided to the Contractor by the Government, in writing, and updated as necessary throughout the contract period.

U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the COR.

4.5 Contractor Personnel

The Contractor shall provide a Contract/Project Manager who shall be responsible for the performance of work. An alternate shall also be designated to act in the absence of the Contract/Project Manager. These Contractor personnel (main point of contact and alternate point of contact) are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, "Key Personnel. The Contract/Project Manager and alternate shall have full authority to act on all contact matters relating to daily operations of this contract. Accordingly, at a minimum, the points of contact shall have the technical knowledge of the requirement and be in the position to actually receive assignment, guidance, and direction from the COR, PM and CO per HUDAR 2452.237-73, "Conduct of Work and Technical Guidance" and shall be allocated enough hours to the requirement to ensure successful performance. These points of points of contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Contract/Project Manager or alternate shall be available between the hours of 8:30am to 5:30pm Monday through Friday EST, except Federal Holidays or when the Government facility is closed for administrative reasons.

The Contractor shall (i) obtain security clearance by HUD's officials and PIV cards for 100% of all key personnel that will perform the work for use of HUD internal software programs (Development Application Processing System (DAP) and Integrated Real Estate Management Suite (iREMS)) and (ii) agree and sign the Rules of Behavior for Accessing HUD IT System and Protection of Personally Identifiable Information (PPII). The completion of the background check may take weeks for persons that are new to the Federal PIV system. The Contractor shall coordinate and collaborate with the COR or SCOR to ensure all personnel performing underwriting tasks obtain the necessary access to HUDs IT systems.

4.6 Identification of Contractor Employees

All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government personnel during business meetings, over the telephone, or via electronic mail.

Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees. Contractors/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review. Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their workspace area with their name and company affiliation, or at a minimum, "Contractor" after name.

4.7 Quality Control

The Contractor shall establish and maintain a complete quality control program that shall ensure services are performed in accordance with this contract. The Contractor shall develop and implement procedures to identify, prevent, and ensure non reoccurrence of defective services. The Contractor's quality control program is the means by which he assures himself that his work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan to the Government as directed.

4.7.1 Quality Control Plan

The Contractor shall develop, maintain, enforce, and document a Quality Control Plan (QCP). The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractor's methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor's methodology for resolving problems identified by the Government during reviews conducted in accordance with its Quality Assurance Surveillance Plan (QASP).

The QCP shall also provide the Contractor's methodology for establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system. The QCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Government's QASP. The QCP shall address Quality Management Approach, Quality Assurance, Quality Control and Quality Standards.

5 Specific Tasks

5.1 Loan Underwriting Due Diligence

The Contractor shall receive loan assignments from the COR or SCOR. The COR and SCOR will monitor and oversee deliverables are uploaded onto the SharePoint site or the Portal. The Contractor shall work directly with HUD POC, ORCF Workload Manager/Subject Matter Expert, COR, SCOR, project manager and the approved FHA Lender who submitted the FHA mortgage application to HUD. The loan documents, checklists, punch lists and ORCF's Standardized Punch Lists, Exhibits A-K, will be available through on a SharePoint Site, a portal, or other electronic method for retrieval by the Contractor for processing. The Contractor shall prepare and upload draft or final documents to the Portal the loan documents for review and approval by ORCF. The loan documents consist of but not limited to: Loan Committee template, Lenders narrative, Draft Firm to Sign forms, and photos of exterior and interior when applicable and any required documents in accordance with ORCFs Handbook or other program guidance. For 232/223(f) and 232/223(a)(7), the Contractor shall abide by policies established in the ORCF Handbook. The Contractor shall update the loan application status through HUDs DAP system, a portal or iREMS secure IT systems on a continuing basis until the loan application is completed, either for final rejection, firm commitment, or initial/final endorsement (loan closing).

The COR or SCOR will assign loan processing assignments to the Contractor. The Contractor shall determine if the loan application follows program /regulatory /underwriting requirements (1) is thus approved to move forward for processing; or (2) initially/ permanently reject the application. If the loan is not approved to move forward, the Contractor shall prepare a rejection letter with all reasons cited in the rejection letter and upload to the Portal for review by the COR, SCOR, HUD POC and ORCF Workload Manager/Subject Matter Expert. If a site visit is required, the (Government) will conduct the site visit. The Contractor shall review the borrower and other principals for Previous Participation.

Performance Standards

a) Standard: Review the loan application within fifteen (15) calendar days of loan assignment date.

AQL: Zero Deviation

b) Standard: Enter the project data and status in HUDs IT systems i.e., DAP and/or iREMS within five (5) calendar days from loan assignment date and ongoing throughout the loan processing.

AQL: Zero Deviation

c) Standard: Review HUD Previous Participation of the borrower, management agent and/or principal within fifteen (15) calendar days of assignment date.

AQL: Zero Deviation

Deliverables A001 Processed loan documents (refer to ORCF’s loan application checklists) A007 Project Work Plan

5.2 Loan Closing

At the discretion of the COR or SCOR, the Contractor shall review the loan closing documents upon assignment of the executed Firm Commitment package from the lender and assess for completeness and accuracy. When necessary, prepare deficiency letters to the lenders attorney for corrections. The Contractor shall review the loan closing documents and complete the appropriate closing punch list or exhibits.

The Contractor shall coordinate the loan closing date with ORCFs Workload Manager/Subject Matter Expert two (2) calendar days upon receiving loan closing assignment in accordance with ORCF Handbook and Exhibit D - "232 Closer Punch List”.

The Contractor shall ensure all Special Conditions identified in the Firm Commitment have been satisfied in accordance with ORCFs Handbook.

The Contractor shall prepare and process Firm Commitment extensions (if necessary), amendments to the Firm Commitment submitted by the lender and any other documents including but not limited to the Regulatory Agreement, Escrow Agreement and Mortgage Note. The SCOR in consultation with the Contractor will coordinate the loan closing date with HUDs Office of General Counsel (OGC) attorney, and the lenders attorney to execute the loan closing documents.

Performance Standards

a) Standard: Coordinate the loan closing date with HUD's closing coordinator, lender's attorney and the OGC attorney assigned to the closing within five (5) calendar days after the fully executed firm commitment date. For ORCF loans, coordinate the loan closing two (2) calendar days of closer assignment.

AQL: Zero Deviation

b) Standard: Complete HUD's closing punch-list, closing checklist, required forms and certifications, and obtain contact information for the lender's attorney and the OGC attorney assigned to the loan closing within ten (10) calendar days after the date of the fully executed Firm Commitment and draft closing documents.

AQL: Zero Deviation

c) Standard: Resolve any closing document deficiencies or corrections within ten (10) calendar days of notification of deficiencies or corrections.

AQL: Zero Deviation

d) Standard: Prepare and process amendments, request for Firm Commitment extension, special conditions within ten (10) calendar days after request from lender.

AQL: Zero Deviation

e) Standard: Send the fully executed Firm Commitment to the assigned OGC attorney with the draft closing documents and obtain confirmation of delivery within ten (10) calendar days after the fully executed Firm Commitment and draft closing documents.

AQL: Zero Deviation

Deliverables

A003 Loan closing documents (in accordance ORCF’s Handbook 4232.1)

5.3 Monitoring after Loan Closing/Post-Loan Closing Administration

If the Contractor provided closing services, they shall receive the final executed closing documents after the project has closed from HUDs OGC attorney.

After the loan closing, the Contractor shall provide the final executed closing documents via USB external drive, Portal or other electronic means and update DAP and iREMS IT systems.

For ORFCs 232/223(f) and 232/223(a)(7), loan closings, submit to TransAccess in accordance with Exhibit G - archiving procedures and in accordance with ORCF Handbook closing guidelines.

Performance Standards

a) Standard: Review the executed loan closing documents for completeness within seven (7) calendar days after the date of the loan closing.

AQL: Zero Deviation

b) Standard: Input the project data into the iREMS and DAP secure system within seven (7) calendar days after date of the loan closing.

AQL: Zero Deviation

c) Standard: Obtain confirmation from the COR or SCOR, that the executed loan closing documents and any supporting documentation have been received within ten (10) days after closing date.

AQL: Zero Deviation

d) Standard: Provide confirmation email that the executed loan documents have been provided via USB external drive to the HUD Attorney and to HUD Headquarters Archives/Records Unit within seven (7) calendar days after loan closing.

AQL: Zero Deviation

e) Standard: Provide confirmation email/documentation that Form HUD-290, "Closing Memorandum" has been electronically delivered to the 290 Mailbox within three (3) calendar days after final loan closing.

AQL: Zero Deviation

Deliverables

A003 Loan closing documents (in accordance ORCF’s Handbook 4232.1) A004 Post-closing loan documents/Post-closing loan administration

5.4 Regular Reports

The Contractor shall provide to the COR or SCOR a monthly progress report addressing active and completed loan approvals/rejections. The report shall include loan underwriting performance measures such as total number of applications assigned to each underwriter, number of applications approved and/or rejected by each individual underwriter, date application was assigned for processing, dates of key milestones, average time to complete, status of application in progress, date applications were submitted/returned to the Contractor by the Loan Committee, reasons for delays and the solution, Firm Commitment date, closing date, billings to date and payments received to date. The Contractor shall provide an explanation for any discrepancies between the projected number of completed applications and actual number submitted for approval/rejection.

In addition to the monthly report, the Contractor shall provide ad hoc reports using Microsoft Excel and/or Word upon written requests.

Performance Standards

a) Standard: Provide a monthly report to ORCF on the status of active loans being processed, closed and post-closing/post-loan administration activity for the previous month assigned loans by the 5th day of each the month.

AQL: Zero Deviation

b) Standard: Upon request, provide an electronically transmitted ad hoc report to the COR, SCOR within 8 hours after request.

AQL: 90% of the time

Deliverables

A002 Monthly loan application status report A005 Ad hoc reports

5.5 Transition Support

5.5.1 Transition-In

The Contractor shall, upon the Contracting Officers written notice, furnish Transition-In services as required. As a successor, the Contractor shall have sufficient personnel on board within 30 days of contract award for the Transition-In period to ensure a smooth transition. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to the program is minimized. During the Transition-In period, the Contractor shall become familiar with the requirements to commence full performance of services by the end of the contract Transition-In period. There will be one Transition-In Period for this contract that will encompass the efforts for both HUD programs prescribed in the PWS.

The Contractor shall ensure that Contractor personnel are on board and available within 30 days after contract award date for training and 60 calendar days to accept loan processing assignments. The Contractor shall perform Transition-In duties such as but not limited to an excel spreadsheet containing Contractor personnel names, title, telephone numbers, email address and available days and tour of duty hours.

Performance Standards

a) Standard: Provide Transition-In information in excel document that provides, but not limited, key personnel that will perform the work, Contractor personnel, titles, telephone numbers, email addresses and tour of duty hours and days, status of security clearance for each Contractor personnel, PIVing and access to HUD Systems within 60 calendar days after award date and updated every 60 days.

AQL: Zero Deviation

b) Standard: The project manager, underwriters, and Contractor personnel responsible for the performance of the work are must attend the four (4) day virtual classroom training.

AQL: Zero Deviation

Deliverables A006 Transition-In Services

5.5.2 Transition-Out

The incumbent Contractor shall ensure a smooth transition with the successor Contractor during the Transition-Out period, prior to completion of contractual performance. The incumbent Contractor shall aid the successor in the development of plans, procedures and best practices for loan due diligence and loan closing processes. The Contractor shall provide all reports and completed loan documents on a USB External drive to the COR and SCOR. The Contractor shall provide an orderly transition of work and accomplishment, such that full control by the successor Contractor is achieved by the end of the new contract Transition-In period. A transition-out plan is also required to be submitted 60 calendar days prior to the expiration of the contract. The Transition Out period starts 60 days prior to the expiration date of the last option year exercised. At this time, no loan assignments will be assigned to the contract. There will be one Transition Out Period for this contract that will encompass the efforts for both HUD programs prescribed in the PWS.

Close and perform post-loan closing administration of all assigned loans.

No new loan assignments will be assigned to the Contractor 60 days before the contract expiration date. The Contractor shall completely process and/or close all loans assigned. The Contractor shall provide a tracking report that provides, but not limited to, dates, FHA project number, project name, activity dates, HUD attorney/counsel contact information, email address for verification that loans have been completely processed, underwritten, or closed and uploaded to the portal or electronically emailed in accordance with the ORCF Handbook. An email confirmation from the COR or SCOR will be provided to confirm that each processed, underwritten and/or closed loan documents have been electronically transmitted or provided on a USB external drive sixty (60) calendar days prior to contract expiration date.

Performance Standards

a) Standard: Develop and provide a report that provides information on assigned loans to include but not limited to FHA project number, project name, activity name e.g. loan closing, activity dates, contact name and number, HUD attorney/counsel name and number, and email address (60) calendar days prior to expiration date of the contract to COR or SCOR.

AQL: Zero Deviation

b) Standard: Provide confirmation emails from the COR or SCOR confirming each processed, underwritten and/or closed loan documents have been electronically transmitted or provided on a USB external drive sixty (60) calendar days prior to contract expiration date.

AQL: Zero Deviation

c) Standard: Plan a Transition-Out support meeting with the COR, SCOR and/or government officials, incumbent key personnel that performed the work and representatives of the incoming/successor Contractor thirty (30) calendar days prior to contract expiration date.

AQL: Zero Deviation

Deliverables

A008 Draft Transition-Out Plan A009 Final Transition-Out Plan

6 Deliverables

The Contractor shall complete all work and submit all deliverables as specified herein. The Government reserves the right to make changes to delivery dates.

Project Work Plan outlines the Contractor's strategy to accomplish all tasks and deliverables detailed in the PWS.

6.1 Quality Control Plan

The Contractor's QCP shall be delivered with the Contractor's proposal.

6.2 Acceptance Criteria

All deliverables shall be submitted in a draft format agreed upon by the Contractor and the COR. Upon review and acceptance by the COR, the Contractor shall address all comments and submit a final draft within five (5) business days of COR notification.

7 Performance Requirements Summary

The summary chart below lists the contract's primary requirements, the associated performance standards, the expected target performance, and the methods of surveillance. While some contract requirements may not be listed in the chart below, requirements not appearing on the PRS chart do not negate the Contractor's obligation to perform all requirements as specified in the contract. Additionally, HUD reserves all rights and remedies under the provisions and clauses of the contract when performance of any contract requirement, whether or not listed below, is unacceptable.

HUD will develop a Quality Assurance Surveillance Plan to be used to provide contract oversight. In conjunction with the Contractor's Quality Control Plan and various other methods of assessing performance, the COR and PM may perform on-site reviews and/or other types of verification to determine that the specified target performance requirements have been met.

Regular review of Contractor performance is critical to the overall success of the contract. On a monthly basis, the COR will evaluate the quality of the product or services.

8 Related Documents

The Contractor shall abide by all applicable regulations, publications, manuals, policies, and procedures in the performance of this contract.

Performance Requirement Summary (PRS)

AQL: Zero Deviation

b) Enter the project data and status in HUDs IT systems i.e., DAP and/or iREMS within five (5) calendar days from loan assignment date and ongoing throughout the loan processing.

AQL: Zero Deviation

c) Review HUD Previous Participation of the borrower, management agent and/or principal within fifteen (15) calendar days of assignment date.

AQL: Zero Deviation

d) Review the application, checklist and application exhibits following the standard punch lists.

AQL: Zero Deviation

e) Prepare the required loan documents and exhibits for the Loan Committee approval within ten (10) calendar days of application review completion.

AQL: Zero Deviation

A reduction in cost of 1% of the CLIN price (invoice) for the particular loan per day for each day the deliverable is deemed late.

AQL: Zero Deviation

b) Complete HUD's closing punch-list, closing checklist, required forms and certifications, and obtain contact information for the lender's attorney and the OGC attorney assigned to the loan closing within ten (10) calendar days after the date of the fully executed Firm Commitment and draft closing documents.

AQL: Zero Deviation

c) Resolve any closing document deficiencies or corrections within ten (10) calendar days of notification of deficiencies or corrections.

AQL: Zero Deviation

d) Prepare and process amendments, request for Firm Commitment extension, special conditions within ten (10) calendar days after request from lender.

AQL: Zero Deviation

e) Send the fully executed Firm Commitment to the assigned OGC attorney with the draft closing documents and obtain confirmation of delivery within ten (10) calendar days after the fully executed Firm Commitment and draft closing documents.

A reduction in cost of 1% of the CLIN price (invoice) for the particular loan per day for each day the deliverable is deemed late.

AQL: Zero Deviation

b) Input the project data into the iREMS and DAP secure system within seven (7) calendar days after date of the loan closing.

AQL: Zero Deviation

c) Obtain confirmation from the COR or SCOR, that the executed loan closing documents and any supporting documentation have been received within ten (10) days after closing date.

AQL: Zero Deviation

d) Provide confirmation email that the executed loan documents have been provided via USB external drive to the HUD Attorney and to HUD Headquarters Archives/Records Unit within seven (7) calendar days after loan closing.

AQL: Zero Deviation

e) Provide confirmation email/documentation that Form HUD-290, "Closing Memorandum" has been electronically delivered to the 290 Mailbox within three (3) calendar days after final loan closing.

A reduction in cost of 1% of the CLIN price (invoice) for the particular loan per day for each day the deliverable is deemed late.

AQL: Zero Deviation

b) Upon request, provide an electronically transmitted ad hoc report to the COR, SCOR within 8 hours after request.

AQL: 90% of the time

A reduction in cost of 1% of the CLIN price (invoice) for the particular loan per day for each day the deliverable is deemed late.

AQL: Zero Deviation

b) The project manager, underwriters, and Contractor personnel responsible for the performance of the work are must attend the four (4) day virtual classroom training.

A reduction in cost of 1%…