DRAFT REO Case Management PWS.docx

Performance Work Statement (PWS) REO Case Management Support Services December 11, 2020 Version 1.0

Performance Work Statement (PWS) REO Case Management Support Services Vision Statement

Improve the systematic procedures required by the property disposition processes and accomplish HUD’s mission of improving the way HUD does business.

1 General Information

1.1 Introduction

The U.S. Department of Housing and Urban Development (HUD), Office of Single Family Asset Management (SFAM) requires a Business Service Provider (BSP) to support case management via SaaS (Software as a Service). The services provided will assist with the analysis, management and operational procedures associated with the Single Family Disposition Process (SFDP). These services include providing a web-based online subscription with the ability to have SFAM specific workflow processes. The case management support provided will serve as the primary process for HUD staff and its business partners to send, receive, distribute, analyze, maintain, and manage information relative to the following HUD specific case management and workflow tracking processes:

· Pre-conveyance compliance,

· Post-conveyance property management,

· Disposition strategies,

· Retail REO,

· Contractor monitoring,

· Report capabilities, and

· Help Desk services.

The case management process shall allow for immediate (real-time) availability to complete a variety of portfolio management functions and shall also include interfacing with all HUD approved internal application systems.

1.2 Background

The Federal Housing Administration (FHA), an organizational unit within HUD, administers the single-family mortgage insurance program. FHA insures approved lenders against the risk of loss on loans they finance for the purchase, and in some instances rehabilitation, of single-family homes. When an FHA-insured loan becomes delinquent, lenders begin reporting to FHA the varying stages of delinquency and when warranted, begin loss mitigation efforts.

In the event of a default, the lender will go through varying steps to dispose of the property in accordance with FHA’s disposition waterfall. The first step in the waterfall would be a preforeclosure sale (PFS), commonly referred to as a short sale. Then if available, the lender may work with FHA in a combined note sale. Next in line is the Claim Without Conveyance of Title (CWCOT) program where the lender will attempt to sell the property in one of two public auctions. Finally, if the lender acquires title to the property by foreclosure or a deed-in-lieu of foreclosure and the prior disposition process were unsuccessful, the lender will convey the property to HUD for FHA to sell through its Real Estate Owned (REO) program.

After disposition, the lender will file a claim for insurance benefits to cover the remainder of their loss. As a result, HUD has a need to manage and sell a sizable inventory of single-family homes in a manner that promotes homeownership, preserves communities, and maximizes return to the FHA Mutual Mortgage Insurance Fund.

HUD is the largest home insurer of single-family homes in the United States. In fiscal year 2018, HUD endorsed over one million forward home mortgages and over 48,000 reverse mortgages. During this same period, FHA processed over 46,000 claims through either the PFS, note sale or CWCOT disposition process and over 25,000 through the REO program.

FHA administers the disposition programs through its National Servicing Center located in Oklahoma City, Oklahoma, and four Homeownership Centers (HOC) located in Philadelphia, Pennsylvania; Atlanta, Georgia; Denver, Colorado; and Santa Ana, California. Each HOC is responsible for a designated geographic area. HUD currently has multiple contracts with companies who provide REO management and marketing services (M&M Contractors), lead paint abatement services, loan servicing and Mortgagee compliance monitoring (Mortgagee Compliance Manager (MCM)) throughout the United States, Puerto Rico, the Caribbean, Guam and the Northern Marianna Islands. The three main Contractors are the Mortgagee Compliance Manager (MCM), Asset Manager (AM), and Field Service Manager (FSM). Included in the responsibilities of each contractor will be using the REO Case Management solution to complete their assigned tasks. The following is a summary of the purpose and objectives of each Contractor:

· Mortgagee Compliance Manager (MCM): The MCM performs a variety of pre- and post-property conveyance services to ensure that HUD's interests are protected. These services include: reviewing property inspections to ensure the property is in conveyance condition; assessing provided claim documentation; resolving conveyance exceptions; and providing guidance to Mortgagees related to pre-conveyance and post-conveyance responsibilities.

· Best Execution Contractor: The Best Execution Contractor provides valuation services for properties going through the disposition waterfall and evaluates each process to determine the optimal return and minimize loss.

· Field Service Manager (FSM): The FSM provides property maintenance and preservation services consisting of: verifying pre-conveyance determinations on property conditions, inspecting the property, securing the property, performing cosmetic enhancements/repairs, and providing on-going maintenance. Properties acquired by HUD are assigned to FSMs at the earliest time possible.

· Asset Manager (AM): The AM is responsible for the marketing and sale of REO property. Multiple AMs are contracted to market HUD-owned properties within their selected contract area within their geographic HOC areas.

· Lead Evaluation Contractor (LEC): The LEC evaluates and stabilizes defective paint (lead-based paint that is chipping or pealing) on REO properties that are sold utilizing FHA-insured financing.

Currently, there are approximately 17,000 users accessing REO Property Information via HUD’s current REO Case Management solution. Historically, HUD has had up to 110,000 properties in inventory at any time. HUD has over 54 million attachments stored in 18 terabytes in system data warehouse space. The current hardware configuration has more than 100 web servers designated for HUD. On a monthly basis, approximately 250,000 attachments are uploaded by MCM, AMs and FSMs.

1.2.1 HUD Systems

Case management support services via a web-enabled case management application requires interface with the following secured HUD systems:

· Single-Family Acquired Asset Management System (SAMS) – HUD’S legacy system that tracks and reports on HUD homes for sale, and disbursements all financial transactions related to their repair, lease, listing, and sale, including payments for contractor services, taxes and homeowner association and condominium fees.

· Single Family Housing Enterprise Data Warehouse – Provides a central database integrating information from more than one source of the same type of system and/or from more than one source of different systems.

· Computerized Home Underwriting Management System (CHUMS) – Single Family Housing’s system for underwriting loans. CHUMS is the sole source of operational information for all single-family applications and endorsement activity. It is used to monitor operations, underwriting policy, and Home Ownership Center (HOC) procedures. This system assists and supports HOC staff in the processing of single-family mortgage insurance applications, from initial receipt through endorsement.

1.3 Constraints

1. The Contractor shall maintain compliance with all current and future Federal IT security requirements. The Contractor shall:

A. Maintain IT security and comply with all terms and conditions of the contract throughout the term of the contract with respect to all data and information technology requirements.

B. Use, maintain, enhance, develop and upgrade all information technology software and system documentation under this Contract in accordance with Federal Laws, best practices, and regulations. This includes, but is not limited to:

i. Federal Information Security Management Act -https://www.dhs.gov/fisma

ii. The Privacy Act - https://www.archives.gov/about/laws/privacy-act-1974.html

iii. The E-Government Act - https://www.archives.gov/about/laws/egov-act-section-207.html;

iv. The Clinger-Cohen Act -https://www.fismacenter.com/Clinger%20Cohen.pdf

v. Government Paper Reduction Act - http://www.hhs.gov/ocio/policy/collection/;

vi. Office of Management and Budget Circulars A-130, and A-I23 - https://www.whitehouse.gov/omb/circulars_default;

vii. Office of Management and Budget Memorandum 17-12 https://obamawhitehouse.archives.gov/sites/default/files/omb/memoranda/ 2017/m-17-12_0.pdf;

viii. Department of Housing and Urban Development regulations, Handbooks and Policies - http://www.HUD.gov;

ix. GAO directives; and

x. Federal Financial Manager Integrity Act (FFMIA).

C. Maintain Security Assessment and Authorization (SA&A) standards in accordance with guidance published by NIST. An independent SA&A will be performed by Housing and Urban Development (HUD) during the period of performance of this contract. The Contractor shall complete the SA&A within 6 months after the award of the contract and again at the expiration of the SA&A and to include any revisions or updates.

D. Follow HUD’s Project Planning and Management (PPM) Life Cycle and industry best practices in the analysis, design, development, testing and implementation of proposed new systems and/or the enhancement to existing systems. This includes prohibiting live data from being used in any environment other than Production and Disaster Recovery (DR) environments. Specifically, no live data should be used in development, testing or staging environments.

E. Review and update system documentation to ensure accuracy, compliance and completeness. Reviews and revisions must be completed and delivered to HUD quarterly.

F. The Contractor shall prepare its security plan as part of its demonstration that it meets the requirements for SA&A per the applicable requirements from HUD, OMB, NIST, etc., which will require the preparation of several related documents, including but not limited to:

i. NIST FIPS 199/200 Security Categorization Analysis;

ii. NIST SP-800 Security Controls Self-Assessment;

iii. Application and network venerability scans;

iv. Business Impact Assessment;

v. Privacy Impact Assessment;

vi. Create System Security Plan, Risk Assessment, Technical Architecture, COOP and Contingency Plans, Quality Control Plan, ST&E Plan and other relevant SA&A supporting documentation for each new application;

vii. Security Assessment Tests (formerly ST&E Testing);

viii. Security Assessment Reports (formerly ST&E Report);

ix. POA&M; and

x. Accreditation Documentation.

G. Each mixed or financial system that the contractor manages, develops, modifies, enhances, releases and/or upgrades will be assessed under the Federal Information System Controls Audit Manual (FISCAM) methodology that include control families for both General Computer and Business Process Application controls:

i. General Controls:

1. Security Management

2. Access Controls

3. Configuration Management

4. Segregation of Duties

5. Contingency Planning

ii. Business Process Application Controls:

1. Application Security

2. Business Process Controls

3. Interfaces

4. Data Management

H. Each mixed or financial system that the contractor manages, develops, modifies, enhances, releases and/or upgrades must comply with identified OMB A-123 Appendix A "Management's Responsibility for Internal Control", and Appendix D “Compliance with the Federal Financial Management Improvement Act of l996” key controls; and the Federal Information Security Management Act of 2002 (FISMA) to include:

2. HUD’s Office of the Chief Information Officer (OCIO) will have responsibility for maintaining the FISCAM-based mapping of security controls that will be required in order to maintain compliance with FISMA, OMB A-123, and HUD security requirements.

3. The Contractor shall support and provide system security to ensure availability, confidentiality, and integrity of the HUD data applications (e.g. maintaining access control, user identification, password protection and authentication, confidentiality of customer profiles and traffic, physical and personnel security required under this PWS). Provide SA&A support, including potential off cycle or unanticipated SA&A support, over the life of the contract.

4. The HUD System Security Plans (Risk Assessment, Incidence Response Plan and IT Contingency Plan) shall be reviewed and presented to HUD’s Chief Information Security Officer for approval.

5. The Contractor shall maintain compliance with OMB Memorandum 17-12 (Preparing for and Responding to a Breach of Personally Identifiable Information), which requires contractors and sub-contractors (at any tier) to:

A. Cooperate with and exchange information with agency officials, as determined necessary by the agency, in order to effectively report and manage a suspected or confirmed breach.

B. Properly encrypt PII in accordance with OMB Circular A-130 and other applicable policies and to comply with any agency-specific policies for protecting PII;

C. Provide and participate in mandatory training on how to identify and report a breach;

E. Report a suspected or confirmed breach in any medium or form, including paper, oral, and electronic, as soon as possible and without unreasonable delay, consistent with the agency's incident management policy and US-CERT notification guidelines;

F. Maintain capabilities to determine what Federal information was or could have been accessed and by whom, construct a timeline of user activity, determine methods and techniques used to access Federal information, and identify the initial attack vector;

G. Allow for an inspection, investigation, forensic analysis, and any other action necessary to ensure compliance with OMB M 17-12, the agency's breach response plan, and to assist with responding to a breach;

H. Identify roles and responsibilities, in accordance with OMB M 17-12 and the agency's breach response plan; and, I. Explain that a report of a breach shall not, by itself, be interpreted as evidence that the contractor or its subcontractor (at any tier) failed to provide adequate safeguards for PII.

6. The Contractor shall provide and present a Security Self-Assessment Report to HUD’s Chief Information Security Officer on an annual basis, due no later than August 31st of each calendar year.

7. Plans of Action and Milestones (POA&Ms) shall be reviewed and updated on a semiannual basis (1st week of March and 1st week of October) and presented to HUD’s Chief Information Security Officer for review and approval.

8. Failure to adhere to the above NIST requirements could result in penalties, to include a contract performance stop-work order until compliance can be demonstrated. Disregard of these NIST requirements could also lead to other criminal, civil, administrative, or contract penalties, including, but not limited to:

A. Breach of Contract damages B. False Claims Act damages C. Liquidated Damages D. Termination for Default E. Termination for Convenience F. Poor Past Performance G. Suspension/debarment

1.4 Description of Services

The Contractor shall provide case management support services which includes providing a web-based online subscription for portfolio/case management. This service shall be the SFAM system of record for the activities and functions associated with the case management processes. Activities and functions include the following: Pre-conveyance compliance; post-conveyance property management, disposition strategies, retail REO sales, contractor monitoring; report capabilities, and help-desk services. Detailed descriptions of specific tasks are provided in Section 5 Specific Tasks and Deliverables.

1.5 Non-Personal Services

The Government will neither supervise Contractor employees nor control the process 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 is one 12-month base period and four 12-month option periods.

1.7 Place of Performance

Performance shall be at the Contractor's facility.

1.8 Hours of Operation

The Contractor’s online services shall be available between the hours of 7:00 AM EST and 9:00 PM EST, Monday through Friday, and Saturday 7:00 AM EST and 6:00 PM EST 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.

The help desk shall be available between the hours of 7:00 AM EST and 9:00 PM EST, Monday through 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.

In addition, the public facing portals including the property listing and bid site shall be accessible to selling brokers, business partners, and the general public seven (7) days per week / twenty-four (24) hours a day except during scheduled outages for data updating.

The Contractor shall be available to respond to and resolve service-related emergencies twenty-four (24) hours a day, seven (7) days per week, including recognized Federal holidays.

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 Contractor shall provide a certified Project Management Professional (PMP) level of project management support.

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 Officer’s 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 shall 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 at the Contracting Officer’s discretion.

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

Transition-In. The Contractor shall furnish a Transition-In Plan with their proposal. The Transition-In Plan shall include a description of the transition activities to be carried out and a timeline for the implementation and completion of all transition-in activities. As a successor, the Contractor shall have sufficient personnel on board during the 3-month 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 a 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. 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 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 processes 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

1st Chance Sale - CWCOT- Mortgagee is to conduct the pre-foreclosure sale in accordance to laws of each State.

2nd Chance Sale - CWCOT - Mortgagee will have a Post-Foreclosure Sales Efforts where the Property where the property is marketed by an independent third-party provider.

Business/Workdays - Every official workday of the week which are days between and including Monday to Friday. (see 1.8 Hours of Operation) Calendar Day - Any day of the week.

Claims Without Conveyance of Title (CWCOT) - A program under which the Mortgagee attempts to secure a third-party purchaser for the mortgaged property prior to conveyance to HUD.

Continental United States - The 48 contiguous States and the District of Columbia.

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.

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.

Home Ownership Center – HUD HOCs are in the following four cities: Atlanta, GA; Philadelphia, PA; Santa Ana, CA; and Denver, CO.

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 processes 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.

Pre-Foreclosure Sale (PFS) - Also known as a Short Sale, refers to the sale of real estate that generates proceeds that are less than the amount owed on the Property and the lien holders agree to release their liens and forgive the deficiency balance on the real estate.

Note Sales - A program to market and sell either forward or reverse mortgage loan notes in bulk prior to foreclosure.

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 a 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.

Single Family Disposition Process (SFDP) - The activities, procedures, analysis, and information requirements as it relates to the process employed by HUD for property disposition.

Single Family Disposition Waterfall - The name that encompasses the property disposition at the Pre-Foreclosure Sale (PFS Short Sale), Forward/HECM Note Sales, Claims Without Conveyance of Title (CWCOT), HUD REO acquisition.

SiteMinder – Application that allows for single-sign-on via web-authentication.

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.

Software as a Service (SaaS): is a software distribution model in which a third party provider hosts application and make them available to customers over the internet.

2.2 Acronyms

ACA – Asset Control Area AM - Asset Manager AQL - Acceptable Quality Level AR – Administrative Remedies CFO or OCFO - Office of the Chief Financial Officer of HUD CFR - Code of Federal Regulations CHUMS - Computerized Homes Underwriting Management System CIO or OCIO - Office of the Chief Information Officer of HUD CO - Contracting Officer COR - Contracting Officer Representative CPO - Office of the Chief Procurement Officer of HUD CWCOT - Claims Without Conveyance of Title EIN - Employer Identification Number EST - Eastern Standard Time (U.S.)

FSM - Field Service Manager GAO - U.S. General Accounting Office GNND – Good Neighbor Next Door - Officer, Teacher, Firefighter participants HOC – Home Ownership Centers HPIR - HUD Property Inspection Report HUD - U.S. Department of Housing and Urban Development HUD-27011A, B– HUD Claim Form HUDAR - HUD Acquisition Regulation IG- Inspector General ISSO- Information Systems Security Officer ITIN - Individual Tax Identification Number MCM - Mortgagee Compliance Monitor Contractor M&M - Management and Marketing NAID - Name and Address Identification NSC - National Service Center NSP - National Stabilization Program OCPO - Office of the Chief Procurement Officer OIG - Office of Inspector General OMB - Office of Management and Budget PCR - Property Condition Report PFS - Pre-foreclosure Sale PM - Project Manager PNG – Portable Network Graphics POC - Point of Contact QA - Quality Assurance QASP - Quality Assurance Surveillance Plan QCP - Quality Control Plan SFAM - Single Family Asset Management SFDP - Single Family Disposition Process SaaS – Software as a Service SSN – Social Security Number WON - Work Order Notification

3.0 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 Annual Security Awareness and Ethics training.

3.2 Facilities

The Government will not provide facilities, except for conference rooms/areas for Contractor to provide training.

3.3 Equipment

The Government will not provide equipment.

3.4 Materials

Copies of required materials may be provided to the Contractor in hard copy or soft copy, no later than five business days after the Post Award / Kickoff Conference. All materials will remain the property of the Government and will be returned to the COR upon request or at the end of the contract period.

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 necessary to perform the services stated within this PWS.

4.2 Equipment

The Contractor shall furnish all equipment necessary to perform the services stated within this PWS.

4.3 Material

The Contractor shall furnish all materials necessary to perform the services stated within this PWS.

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 upon request.

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 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 8:00am to 4:30pm Monday through Friday EST, except Federal Holidays or when the Government facility is closed for administrative reasons.

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 process for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor's process 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 process 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 Case Management Support Services

The Contractor shall provide case management support services which includes providing a web-based online subscription for portfolio/case management shall be available to users as identified in PWS Section 1.8, Hours of Operation.

Performance Standards

a) Standard: No more than 3 incidences of online service downtime per month which the Contractor is responsible for.

AQL: Zero deviation from standard.

5.1.1 Portal Access

The Contractor shall ensure the REO Case Management solution include the following portals with the capabilities listed below:

1. Mortgagee Portal

· Allow Mortgagee/Servicer to have one or more super-users who can grant Portal access to other mortgagee users.

· Allow data entry to enter conveyance extension requests, overallowables requests, surchargeable damage requests, case documents, pre-conveyance documents and title documents attached to the property case number.

· Allow the MCM to review and approve these requests before they are permanently added to a case record.

2. Appraiser Portal

· Allow AMs the ability to grant Portal access to appraisers and supply these users with login and password information.

· Allow valuation data and documents to be submitted for assigned properties.

· Allow AMs to review and approve appraisals before they are permanently added to a case.

3. Inspector Portal

· Allow FSMs and AMs the ability to grant Portal access to their inspectors and supply these users with login and password information.

· Ability for FSMs and AMs to review and approve routine inspections before they are permanently added to a case.

· Allow for FSMs to upload HUD Property Inspection Reports (HPIR), including Property Condition Reports (PCR).

4. Buyer Select Closing Agent Portal

· Ability to enter the closing date for properties with sales contracts.

In addition, the Contractor shall ensure that the REO Case Management solution has the following capabilities:

· Limited access to the REO Case Management solution screens to users that do not have Personal Identity Verification (PIV) credentials (to include: Mortgagees/Servicers, Appraisers, Inspectors, Buyer Select Closing Agents and Real Estate Brokers).

· Process to grant access to Portals for the different non-PIV user groups. This shall include specific case/property FHA case number assignment to the Mortgagee/Servicers portal users.

· For all requests, data and attachments submitted through the Portal by non-PIV users, a process that requires a review by appropriate PIV users such as the MCM, AM or FSM before entering into REO Casement Management.

· All portals shall allow for the adding / uploading of attachments, emails, and notes to a case.

· Access to run appropriate dashboard reports to help determine missing information, request, approval, denial, and appeal statuses.

· Attachments can be Word documents, text files, Excel spreadsheets, PDFs, pictures (portable network graphics (PNG) format), tiff images, or csv (comma-separated value) files.

· Ability of users to categorize attachments with user picklists.

· Ability to add notes within a required description field.

· REO Case Management solution has email address that is case number specific with ability to send, receive, and store emails.

· Emails shall have case number default in subject line.

· Email Contacts List available in the REO Case Management solution.

· Ability for different M&M user groups to maintain their email contacts.

· New information can be added to each request by PIV users during their review.

· Ability for PIV users approve or deny/reject the request.

Performance Standards

a) Standard: No more than 3 incidences of portal downtime per month which the Contractor is responsible for and outside maintenance requirments.

AQL: Zero deviation from standard.

5.1.2 Preconveyance

The Contractor shall provide a process within the REO Case Management solution for the Mortgagee/Servicers to submit the following requests for approval to the MCM:

(a) Request for Extension (extension requests, appeals). The types of time extensions that may be requested are, but not limited to:

· Requests for Extension of Time to Convey - capability to submit/respond to, process and report on the requests for extension of Time to Convey, and view decisions on the submitted requests utilizing the information found on form HUD-50012, Mortgagees Request for Extension of Time.

· Requests for Extension of Time to Submit Title - capability to submit/ respond to, process and report on the requests for extension of Time to Submit Title.

(b) Overallowables (approval, appeals). The Contractor shall ensure the following capabilities are available when submitting overallowable requests:

· Allow the Mortgagee to upload supporting documentation for the request.

· A workflow process and reporting for the MCM on the request data and the ability to notify the Mortgagee of acceptance or denial Extensions of Time and Overallowables.

· Ability for the Mortgagee to appeal the decision of a previous request.

· A process for the COR to communicate the appeal acceptance or denial determination to the Mortgagee.

· Ability to perform reporting on each overallowable line item.

The following data elements are required for overallowable requests (list is not all inclusive): property disposition dates {such as vacancy, foreclosure or trustee sale, deed recorded, expected conveyance}, and description of overallowable items requested {description of work to do, quantity, unit cost, total cost, and remarks}).

(c) Surchargeable Damage - The Contractor shall ensure the following capabilities are available when submitting surchargeable damage:

· Allows MCM to be notified of pending requests to convey a property with surchargeable damage and can review all of the documentation provided by the Mortgagee.

· Allows the MCM to either approve or deny the request to convey with surchargeable damage and generate emails and post decision to the Mortgagee.

· Captures the surchargeable damage requests within the Mortgagee portal. If the request is denied an appeal workflow process will allow the requestor to provide additional documentation for a supervisory MCM review.

· If the appeal is denied again the requestor will be provided with a final appeal process. A notification to the COR of any final appeal filed by a Mortgagee and allow the COR to review that case and render a final decision.

· Automatically generates an email that is sent to the Mortgagee with the final decision.

· Captures the final decision within the Mortgagee portal.

(d) Request for Occupied Conveyance

· Allows the MCM to upload occupied conveyance documentation.

· Allows the MCM to input all provided documentation concerning an occupants income, expenses, and members of the household.

· Allows the MCM to either approve or deny the request and generate a letter to notify the occupant of the decision.

· If the request is denied an appeal process will allow the occupant to provide additional documentation for a supervisory MCM review.

· Provides the MCM the ability to input the appeal information and upload any associated documentation.

· Provides MCM the ability to recommend approval or denial of the occupied conveyance and submit the recommendation to the COR for approval or denial.

· Provides the COR the ability to approve or deny the appeal request, record the COR’s decision, notify the MCM of the decision, and generate a decision letter to the occupant.

The Contractor shall ensure an email is automatically sent to Servicer when the MCM responds to any of the requests above with an approval or denial.

5.1.2.1 Suspended Claims Process

The Contractor shall provide a process within the REO Case Management solution that allows HUD staff to suspend claims submitted by mortgagees and servicers. This process shall include:

· A process for the Mortgagee to receive notification of suspended claims within their portfolio. This notification shall be visible on the process dashboard.

· Allow the mortgagee to submit supporting documentation based upon the Suspension Code(s) of each cases suspended claim.

· The ability for the HUD Claims group to be notified when a suspended claim case is ready to be reviewed.

· Mortgagee receives notification of the Claims staff decision on the provided process dashboard.

· No fewer than two dashboard notifications which shall display cases which have qualifying error codes.

5.1.3 Disposition Waterfall

The Contractor shall track within the REO Case Management solution FHA delinquent loans and their activities that occur before a property is conveyed to HUD. The Contractor shall provide a process to import and data from the Single Family Housing Enterprise Data Warehouse (SFHEDW). The process shall allow Mortgagees/Servicers, HUD, NSC and M&M staff to:

· Import and display HUD SF delinquency/default status codes on a weekly and or monthly timeframe.

· Process to import HUD SF Loss Mitigation status codes on a weekly and or monthly timeframe.

· Report Servicers with a high rate of fatal errors and demand resolution.

· Process to identify/label FHA case numbers and track historically the changes of case number during the waterfall from Pre-Foreclosure Sale (PFS), FHA Forward /HECM Notes Sales, Claims without Conveyance of Title (CWCOT) 1st sale, 2nch change sale and conveyance/acquisition for REO disposition.

5.1.3.1 Valuation Disposition Strategy

The Contractor shall provide a process within the REO Case Management solution to collect, display, and track multiple types of valuation records for each property, such as Appraisals, Broker Price Opinions (BPO) and Automated Valuation Model (AVM) or Automated Valuation Model with comparable.

The Contractor shall ensure the process captures and validates the appraiser ID from the data provided by SAMS and displays an approval/reject flag if the appraiser is not on the HUD approved roster. Valuation data which shall be displayed includes at a minimum:

· Dates, values, appraiser name, CHUMS ID, and insurability designation relative to all appraisals obtained.

· Required repairs, costs for repairs, and reasons for the repairs.

· Record dates, values, and brokers name relative to all Broker Price Opinions.

The Contractor’s process shall provide capabilities to capture appraisal reviews and findings. In addition, the Contractor’s process shall provide valuation review capability to identify questionable valuations based on the records of valuations performed and data available in HUD systems. The process shall include:

· Ability to test and import individual property valuation analysis.

· A workflow and reporting process in accordance to each disposition to submit SFAM required data and claim compliance supporting documentation.

· Ability for the MCM to review and approve the uploaded supporting documents and issue required Administrative Remedies (AR) due to non-compliance.

· Ability for the MCM to reject any/all of the mortgagees uploaded supporting documents. In this outcome the Mortgagee shall have the ability to submit updated versions of the previously rejected supporting document.

· Ability to record Quality Assurance Surveillance Plans (Scorecard).

5.1.3.2 Property Case Management

The Contractor shall provide a process within the REO Case Management solution for the FSM, AM, and MCM to create property disposition records. The process shall allow for the following:

· A disposition record created for a Held-off-Market (HOM) status or listing of properties.

· A disposition to be canceled and the ability for the FSM and AM to enter a rejection reason.

· A disposition process where inspections, valuation, property condition report, photos and addendums are available to the property listing site.

· A disposition comprised of two independent user levels: creator and approver and should contain a rejection process.

· The ability to specify the commission split between the Selling Agent and Listing Agent. The Contractor shall not allow the broker commissions to be above 3 percent; however, selling broker commission can be less.

· Property addendums to be added to the disposition and display on…