IndustryDay 5-15-12.pdf

Rural Development-Centralized Servicing Center Industry Day

CENTRALIZED SERVICING CENTER (CSC)

May 15th, 2012

Background

• Rural Development-Centralized Servicing Center

– Portfolio: 329,166 Accounts

– Principal Balance $16,075,725,980

– 15,102 Foreclosures

– 6,129 Bankruptcies

– 1,251 REO Properties

• 2007: CSC started centralizing the Foreclosure and REO functions from Satellite (Field) Offices to St. Louis Complex.

• Currently CSC manages:

– REO Process: 24 States (726 Properties) in rural areas.

– Foreclosure Process: 27 States (7,327 Accounts)

• Decision has been made to centralize the Foreclosure and REO

Processes in St. Louis.

• Management of all default functions and contracts will be managed directly from CSC.

Reasons for Centralization/Contracting

• Consistency

– Valuation

– Attorney Services

– Management Of Properties

– Disposition of Properties

• Economies of scale

• Tracking

– Process

– Pricing

• Integration of Processes (Cradle to Grave)

Processes To Be Contracted (This list is not all-inclusive)

• Attorney Services

– Foreclosure Processing

– Bankruptcy

– Evictions

– REO functions

• Valuation

– Liquidation Value Appraisals

– Market Value Appraisals

– Broker’s Price Opinions

• Property Preservation

– Securitization

– Winterization

– Inspection

– Trash Removal and Storage

– Lawn Maintenance/Snow Removal

– Environmental Testing, Abatement/Remediation, Clearance

– Well/Septic Inspection & Repair

– General Maintenance/Minor Repairs In Accordance With Local Ordinances

– Pest Removal

– Eviction Assistance

– Major Repair

– Demolition & Haul Away

• Property Management

– Maintenance of Utilities

– Homeowners Association Fees

– Tax Monitoring and Payment

– Brokerage & Sale Negotiation

– Auction

Property/Account Attributes

• All properties in areas with Rural Designation.

• Average Appraised Value of REO: $85,226

• Average Principal Balance of Foreclosure Properties: $63,528

• Borrower’s Low to Very Low Income

USDA Regions

Additional Information

• Must have:

– Established partnerships (or the capacity to establish partnerships /teaming agreement) with the Native American Community to be able service on tribal lands.

– Electronic transmission capabilities.

– Ability for two way interaction with MortgageServ (LoanServ) mortgage servicing system to include automated ordering and results update.

– Ability for canned reports to be pulled by end user as well as interface for creation of ad-hoc reports as needed.

Contracting

• Maximize Competition

• Increase Small Business Participation

• Requirement Information (intended):

– Open Market Solicitation: FAR Part 15 (Contracting by Negotiation)

– Multiple Single Award Contracts

• Contractor Eligibility Considerations:

– System For Award Management; www.sam.gov/sam

• Central Contractor Registration (CCR)

• Online Representations and Certifications (ORCA)

– NAICS Codes:

• 531311 - Residential Property Management

• 561720 - Janitorial Services

• Other NAICS to be added http://www.sam.gov/sam�

Next Steps

• Draft Statement of Work to be posted on FBO: May 2012

• Anticipated Solicitation Release on FBO: July 2012

• Contract Award Target: November 2012

Questions & Answers

Rural Development-Centralized Servicing Center Industry Day

CENTRALIZED SERVICING CENTER (CSC)

May 15th, 2012