Q_&__A's_from_3.9_Presolicitation_conference.pdf

QUESTIONS AND ANSWERS FROM 3.9 ASSET MANAGER PRESOLICITATION

CONFERENCE SEPTEMBER 6, 2018, ATLANTA, GA

Q1. Will HUD consider Non-Traditional Appraisal product for Valuation? (i.e. where a non-appraiser performs the inspection a state licensed FHA appraiser performs the value conclusion.

The report would be in conformance to IAG and USPAP standards).

Answer: No. HUD Handbook 4000.1 requires an appraisal to be completed by an FHA Roster

Appraiser.

Q2. Why was the original 3.9 Canceled?

Answer: The solicitation as previously issued did not adequately reflect the agency’s need.

Q3. What’s the expected term of the 3.9 award?

Answer: Contract terms and conditions will be included in the final solicitation. The anticipated period of performance is a Base period of 12 months and four 12 month option periods (if exercised).

Q4. Award/Review Timeframe?

Answer: Estimated award timeframe is January 2019.

Q5. Would a contractor be able to win all the S areas if it ends up being 2 contracts? (i.e. 3S/5S and 4S/6S)

Answer: No. The government intends to limit the number of contract areas to two per vendor.

Thus if a vendor is awarded one of the combined areas, they would not be eligible for award in additional areas.

Q6. If there is a home assigned to HUD and to a FSM and its late being promoted to the AM, is the FSM paying taxes while it’s in their inventory, or is it accruing late fees?

Answer: The FSM is not required to pay the taxes. If the property is not assigned to the AM within 20 days from assignment to HUD, the contractor is not responsible for penalties and interest until 10 days after the property is assigned to the AM.

Q7. Sometimes the best homes are in inventory greater than 90 days. For example, if a home gets

20 bids and the 1st bidder goes under contract and uses up 45 days and then gets an extension of

15 days and then can’t get a loan they have used up 60 days, then the 2nd buyer could tie it up. If after 90 days, it could go to a 3rd bidder that would let more than going to auction. Can it be a case by case?

Answer: HUD is mainly reviewing properties for Auction that have been listed 90 days and longer. Cases moved to auction are selected on a case by case basis.

Q8. What is the cycle time for reimbursement of advancement (i.e. taxes)?

Answer: Cycle time is 30 days provided a proper invoice is submitted.

Q9. How do the Asset Management Companies and Field Services Companies interact with each other?

Answer: AM and FSMs should interact through normal channels of communication including email, phone and P260.

Q10. Is it considered a conflict of interest if a contractor is related to the Real Estate

Commissioner in the contract geographic area?

Answer: Review Section PWS Section 1.3.6.1. The Contractor shall not engage in or permit any conflict of interest, in addition to any other conflicts of interest prohibited under applicable law.

Q11. Does an appraisal have to be one of the methods to establish the initial list price?

Answer: Yes. An appraisal is required, in addition to a second valuation method, (e.g. AVM or

BPO)

Q12. Will you please provide information on HUD's property pipeline for this region showing past data (for five years) on foreclosures, REO and dispositions?

Answer: HUD provides historical data. Historical volumes are not a Guarantee of future volumes. Potential bidders should be knowledgeable about property sales and market trends.

Potential bidders are only guaranteed the Guaranteed Minimum designated in the PWS.

Contract Area (4D - WI, SD, NE, IA)

FY 2014 FY 2015 FY 2016 FY 2017 FYTD 2018 as of August

31, 2018 (11 Months)

Acquisitions 2,273 2,553 1,883 986 632

Sales 2,667 2,334 2,248 1,193 672

Contract Area (5D - MT, WI, ND, MN)

FY 2014 FY 2015 FY 2016 FY 2017 FYTD 2018 as of August

31, 2018 (11 Months)

Acquisitions 1,581 1,794 1,399 769 560

Sales 2,223 1,622 1,604 938 604

Contract Area (3S -AZ)

31, 2018 (11 Months)

Acquisitions 1,044 995 618 360 205

Sales 1,510 1,022 742 447 204

Contract Area (4S NV, ID)

FY 2014 FY 2015 FY 2016 FY 2017 FYTD 2018 as of August

31, 2018 (11 Months)

Acquisitions 692 847 564 349 159

Sales 2,321 1.020 884 588 419

Contract Area (5S -CA, HI, GUAM )

31, 2018 (11 Months)

Acquisitions 1,228 1,036 755 482 392

Sales 2,321 1,020 884 588 419

Contract Area (6S-AK, WA, OR)

31, 2018 (11 Months)

Acquisitions 2,342 2,337 1,447 823 539

Sales 2,821 2,191 1,828 1083 575

Contract Area (3P - NY, NJ, MA, CT, NH, VT, ME, RI)

31, 2018 (11 Months)

Acquisitions 1,743 3,256 4,823 3,997 3,232

Sales 1,942 2,220 3,424 5,683 3,592

Q13. Does HUD have projections for FHA insured properties? Can HUD provide data on trends in new mortgages for the region and trends in default rates?

Answer: HUD provides historical data (see Q12). Historical volumes are not a Guarantee of future volumes. Potential bidders should be knowledgeable about property sales and market trends. Potential bidders are only guaranteed the Guaranteed Minimum designated in the PWS.

Q14. Can HUD please provide data on property management expenses, sales proceeds, sale/BPO ratios, etc. over the past 2-5 years?

Answer: Potential bidders should be knowledgeable about the cost for services associated with services required in the PWS and their entity’s required Return on Investment.

Potential bidders should be knowledgeable about property sales and cost for services associated with services required in the PWS.

Q15. Can HUD please discuss their loan sale program and how that could impact future asset management work?

Answer: Note Sales is one of the disposition strategies utilized to increase recovery rates on

Asset Dispositions. The success of upstreaming dispositions is highly dependent on market conditions that includes but is not limited to investor capital/demand constraints, inventory level, etc. HUD provides historical data (see Q12). Historical volumes are not a Guarantee of future volumes. Potential bidders should be knowledgeable about property sales and market trends.

Potential bidders are only guaranteed the Guaranty Minimum delignated in the PWS.