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Solicitation 86543GR00001, A0003 Loan Underwriting Services Questions and Answers
| Q1 |
| Section 5.1 of the PWS (Loan Underwriting Due Diligence) states that the loan documents (and documentation to facilitate the underwriting) will be available through a SharePoint Site, a portal, USB external drive, or electronically. Can HUD confirm that loan documents will only be provided electronically and that paper copies of applications will not be sent to the contractor? |
| A1 |
| All loan documents will be provided electronically. |
| Q2 |
| The PWS states that the “Contractor’s underwriters are required to have one-year experience in FHA mortgage insurance underwriting, processing, and loan closing for multifamily and healthcare programs in accordance with OMHP or ORCF guidance.” Is each underwriter expected to have experience with both multifamily and healthcare programs? |
| A2 |
| Confirmed. Refer to section 1.8 of the PWS. |
| Q3 |
| From a scope perspective, it sounds like contractors will also be expected to perform the below (which Contract underwriters did not have to do in the past and may be handled by the Project Management and/or Closing Teams): (i) to update various online reporting systems (e.g. DAP, iREMS), (ii) arrange site visits and ensure the 4128s and HEROs are completed, (iii) prepare loan files for archiving and shipment to HQs. Please clarify what role the Contract Underwriting has in the completion of the 4128/HEROS. |
| A3 |
| Yes, the contractor is requested to perform i); ii); and iii). The contractor is expected to go into HEROS and pull down the report to ensure its complete. |
| Q4 |
| Performance Standard (g) states that the required loan documents and exhibits for the Loan Committee approval must be prepared within ten days of loan assignment. This timeline does not correspond to those given in other parts of the PWS, such as Performance Standard (f) from the same section. What is the expected timeline for Loan Committee documentation preparation? |
| A4 |
| The contractor starts loan committee documentation preparation following the application review and underwriting that results in recommending the loan for approval. This means the preparation timeline is within the established timeframes for processing assigned loans. |
| Q5 |
| HUD may also want to reconsider the sequence of deliverables mentioned. For example, the current language suggests that 2530s must be done simultaneously as the draft firm documents. Generally, 2530s are done prior to the firm commitment documents in order to ensure that 2530 is satisfactory for the application approval. |
| A5 |
| The previous participation certification is filed before the application submission (required exhibit). |
| Q6 |
| The delays in processing and closing caused by HUD are currently netted against the total, both for penalties and quality issues? |
| A6 |
| Refer to FAR 52.242-17 Government Delay of Work. |
| Q7 |
| Who will keep track of the processing time mentioned throughout the PWS? |
| A7 |
| Processing times will be tracked and managed by the COR and SCOR. |
| Q8 |
| Please confirm the deliverable due dates are calendar days and not business days. For example, on a 223(a)(7), the requirement used to be 15 business days and now it is 20 calendar days. Assuming an assignment is made on a Friday, the contract underwriter would lose two full days over the weekend because the government’s and lender’s offices would be closed until Monday. |
| A8 |
| The processing times and deliverables are calculated using calendar days. |
| Q9 |
| Section 3 of the PWS states “The Government will furnish, at no cost to the Contractor, the following GFP… (3) Access to HUD’s DAP, iREMS, HEROS, and APPS software systems for the Contractor to update the loan application status and to review and recommend approval of credit of the applicants and other team members.” Section 4.4 of the PWS states that the contractor shall obtain security clearance by HUD officials and PIV cards for 100% of all key personnel. Section 4.4 states that key personnel include the project manager and alternate. Can you clarify if the contractor underwriters and contractor closing coordinators will be given access to these systems or is the intention for only the project manager and alternative project manager to have access? |
| A9 |
| Appropriate staff working on the contract will require PIVing. |
| Q10 |
| The PWS states that the Contractor’s underwriter will coordinate the loan closing. Can HUD clarify if it intends for the Contractor’s underwriting to handle all closing tasks? |
| A10 |
| Yes, refer to section 5.2 of the PWS. |
| Q11 |
| Performance Standard (g) of Section 5.2 states that the HUD-290 will be prepared and generated at least three days prior to the loan closing date. Section 5.3 Performance Standard (e) states that confirmation that Form HUD-290 has been delivered would be provided within three days after loan closing. The Form HUD-290 contains the final closing terms and date and can only be submitted with the signed Mortgage Note and after being signed by the appropriate HUD personnel. How can this data be input and the 290 generated before the closing has actually occurred? Should the timeframe be 3 calendar days following the loan closing date? |
| A11 |
| Section 5.2 item g) of the PWS will be changed to read, “...three (3) calendar days after the loan closing date.” Refer to 86543G19R00001 A0003, Attachment 1, Revised Performance Work Statement. |
| Q12 |
| Section 5.3 states that the “Contractor shall provide the final executed closing documents via USB external drive or a portal”. Under Performance Standard (d) of the same section, it is stated that the Contractor is to confirm that “executed loan documents have been provided via USB external drive to the HUD Attorney and to HUD Headquarters Archives/Records Unit”. Exhibit G of the solicitation (232 Archiving Procedures) seems to refer to hardcopies/boxes. Is the Contractor expected to mail a USB external drive containing the executed loan documents for every loan? Will HUD be mailing out the USB external drives, or can the HUD Attorney and HUD Headquarters Archives/Records Unit receive the executed loan documents via a portal? Will hardcopies be expected for 232/223(f) loans? This will help us better estimate the level of effort and time involved. |
| A12 |
| Is the Contractor expected to mail a USB external drive containing the executed loan documents for every loan? Yes, refer to section 5.3, the contractor shall provide the final closing documents via USB external drive or portal. |
Will HUD be mailing out the USB external drives? No.
Can the HUD Attorney and HUD Headquarters Archives/Records Unit receive the executed loan documents via a portal? Yes.
The MF HUD POC or the ORCF's Workload Manager will independently provide the required materials using a SharePoint site, a portal, electronically or provide a USB external drive of the loan applications to the Contractor for processing.
Will hardcopies be expected for 232/223(f) loans? No. ORCF has introduced a portal and now allows all executed documents to be uploaded to the Portal, bypassing the need for a USB drive. In any event, the Lender or Lender Counsel will be providing the USB drive and send into HUD or a HUD Contractor. All official HUD executed documents are submitted via the portal and electronically transferred to our official TransAccess website – that also serves as the official Departmental archives.
The portal does not apply to OHMP.
| Q13 |
| Section 5.3 Monitoring after Loan Closing states that a submission to TransAccess will be necessary for 232/223(f) loans. TransAccess is not listed under Section 3 Government-Furnished Property and Services as a system that the Contractor will be given access to. Can HUD confirm that access will be provided? |
| A13 |
| Yes, appropriate staff will have access to TransAccess. |
| Q14 |
| Section 5.2 Loan Closing Performance Standard (h) states that the Contractor will “obtain notarization on the necessary forms”. Will the Contractor be required to locate and use a third-party notary or will the HUD Field Offices provide the necessary notarization? |
| A14 |
| The Lender or Lender Counsel assist HUD locating notaries for signing official HUD Documents. In addition, HUD does have its own notaries to use for signing these documents. The contractor will not be required to provide notary services as part of the contract. |
| Q15 |
| Section 5.1 states that project data needs to be entered into DAP and/or iREMS. Section 5.4 DAP and iREMS need to be updated after the loan closing. Do both DAP and iREMS systems need to be updated for each loan or will some loans only be on DAP and others only on iREMS? |
| A15 |
| The contractor will only enter loan information into DAP, not iREMS. All DAP loans are uploaded into iREMS overnight. |
| Q16 |
| Section 5.4 establishes that reporting will consist of monthly status reports and ad hoc reports. Section 6 (Deliverables and Milestones) lists that there can be “up to 12 [Ad Hoc reports] per year”. The Schedule of Supplies/Services on Standard Form 1449 lists 36 each year of “Regular Reports Multifamily Office includes Ad Hoc reports” and 12 each year of “Regular Reports Healthcare Office including Ad Hoc reports” (e.g., Item No. 0013 and 0014 for the Base Period). Similarly, Attachment 10 specifies 36 reports under CLIN 0013 and 12 under CLIN 0014. Please clarify. |
| A16 |
| The ad hoc report is on a as needed basis and regular reporting is definite. It is the governments best estimate for each period of performance to ensure Multiple Program Offices are supported. |
| Q17 |
| Under Section 52.216-27 (Single or Multiple Awards), it states, “The Government may elect to award a single delivery order contract or task order contract or to award multiple delivery order contracts or task order contracts for the same or similar supplies or services to two or more sources under this solicitation.” Can HUD specify if this is a single award or a multiple award IDIQ? |
| A17 |
| Refer to Addenda to 52.212-1 Instructions to Offerors, Instructions For Submission of Offers, first paragraph. |
| Q18 |
| Under Section 2452.237-70 (KEY PERSONNEL), "Personnel" is defined as “employees of the contractor, or any subcontractor(s), affiliates, joint venture partners, or team members, and consultants engaged by any of those entities.” The PWS Section 4.4 states the following: “…the project manager and the alternate project manager shall have the technical knowledge of the requirement and be in the position to receive assignments… These points of contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for all positions.” Would HUD consider the alternate project manager to be an employee of the subcontractor given HUD’s definition of “personnel” noted above? |
| A18 |
| 2452.237-70 is the definition of who can be a Key Personnel. The Government has determined the Key Personnel will be the Project Manager and the Alternate Project Manager of the Contractor. |
| Q19 |
| Under Section V of the Solicitation Provision, Instructions to Offerors, Evaluation Factors, HUD states the following under part (e): “Multiple offers. Offerors are encouraged to submit multiple offers presenting alternative terms and conditions, including alternative line items (provided that the alternative line items are consistent with subpart 4.10 of the Federal Acquisition Regulation), or alternative commercial items for satisfying the requirements of this solicitation. Each offer submitted will be evaluated separately.” Can HUD clarify what it means by multiple offers? |
| A19 |
| More than one proposal submitted by the same Offeror. |
| Q20 |
| Under the section titled “Proposal Submission”, HUD states that the proposal format will consist of Volume 1 – Technical Proposal, and Volume 2 – Price Proposal. Can HUD clarify if Volume 1 should contain (a) Technical Approach (not to exceed 15 pages), (b) Management Plan (not to exceed 15 pages), and (c) Past Performance (no page limit)? If so, is there an overall page limit for the Technical Proposal? |
| Q21 |
| The Management Plan states that it must include “key personnel and responsibilities”. Does HUD expect resumes of all personnel to be included or only the key personnel? Do resumes contribute to the page limit? |
| A21 |
| Refer to page 58 of 81 Management Plan. Only what it states is required to be submitted. |
| Q22 |
| Past Performance section does not provide guidance on how many past performance evaluations are expected, and what is the page limit for Past Performance section? |
| A22 |
| Refer to 86543GR00001, Amendment 0002, A44. |
| Q23 |
| Submission instructions state that we must provide a (1) hard paper copy, and (2) compact disc. Would HUD consider proposal submission by email in lieu of hard copy and/or compact disc. |
| Q24 |
| Additional Fees for extra financials: How does HUD suggest that we price for applications that need to submit multiple sets of financials. Often, the lender submits more than one set to demonstrate financial improvement, which adds time to the transaction processing. In our experience, there can be up to 7 sets of financials that need to be reviewed for one transaction. |
| A24 |
| While seven (7) sets of financials are not typical, additional financials may be required to complete the underwriting of the loan. |
| Q25 |
| Additional Fees for re-reviews: How does HUD suggest that we price for applications that are re-reviewed after being rejected or being placed on “long-term hold”. |
| A25 |
| The contract is a fixed price per loan whether loan is rejected or approved. |
| Q26 |
| The solicitation indicates that this is an IDIQ, and HUD anticipates issuing task orders. Can HUD clarify if the contractor is expected to submit a proposal for each task order, once these are issued under the IDIQ contract? If not, can we assume that the task order would be the official loan assignment to the contractor? Please clarify how the IDIQ contract will operate for loan assignments. |
| A26 |
| a. The Contractor is expected to submit a Technical Proposal for each Task Order. |
b. The PWS for each Task Order will dictate the Scope of Work to be performed. There will not be a Task Order for each loan assignment.
c. See b above.
