Attachment 1 - Draft PWS Compliance Analytics clean version04142025.pdf

1 September 2024

Performance Work Statement (PWS)

Asset Sales Compliance Analytics

4/14/2025

Vision 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/Restrictions

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 Asset Disposition Risk Assessment Analytics

5.1.1 Risk Assessment Analytics

5.1.2 Pre-Sale Compliance Review

5.2 Bidder Qualifications Review

5.3 Purchaser Compliance with HUD’s Post Sale Reporting Requirement

5.4 Pending Changes in Laws and Regulations

5.5 Breach and Financial Cure Analysis

5.6 Monthly Status Meetings

6 Deliverables

6.1 Quality Control Plan

6.2 Acceptance Criteria

7 Performance Requirements Summary

8 Related Documents

Performance Work Statement (PWS)

OAS Compliance Analytics and Monitoring Services - -

Version: 1.0

Vision Statement

To achieve operational excellence of the Federal Housing Administration (FHA) Note Sales Program through analysis of operation, maintenance, risk assessment, and policy compliance of program processes.

1 General Information

1.1 Introduction

The Department of Housing and Urban Development (HUD), Office of Finance and Budget (FAB) requires contractor support to strengthen the asset sales function relative to program compliance with existing loan sale programs. The Contractor shall conduct analytics and provide monitoring services.

1.2 Background

The Office of Asset Sales (OAS) an organizational unit within the Department of Housing and Urban Development (HUD), Office of Finance and Budget, was established in Fiscal Year 2001 to sell FHA defaulted mortgage notes. The single-family loan sale program began in 2002 with Public/Private Joint Ventures under the authority in Section 601 of the National Housing Act.

The objective of the OAS is to maximize the recoveries to the Federal Housing Administration (FHA) insurance funds.

The OAS conducts sales of defaulted mortgage notes that have been acquired through the submission of claims by FHA approved lenders or assigned to HUD by the lender. With the goal of maximizing recoveries to the FHA insurance funds, the OAS conducts competitive auctions, selling the defaulted mortgages primarily to private sector entities, nonprofits and units of local governments at pricing that represents the highest recoveries to the FHA mortgage insurance fund. These loans are then HUD-held and serviced. Since 2017, the Department has sold 7,933 of these HECM notes, with a total Updated Loan Balance (ULB) of $1.75 billion, across seven sales. These sales have helped to increase recoveries to the Mutual Mortgage Insurance Fund

(MMI) while reducing HUDs overall holding costs and preventing a backlog of these assets with the National Servicing Center (NSC).

The following HUD systems will be referenced as data points, the contractor needs to be aware these systems. However, they will to be required to have access to these systems:

Single Family Insurance System (SFIS) The Single-Family Insurance System (SFIS) is HUDs primary system of record for insurance and claim payment status of all FHA insured Single

Family Insurance System (SFIS) Single family loans. The Contractor may need to access the system for insurance and claim data.

Single Family Acquired Asset Management System (SAMS) The Single Family Acquired

Asset Management System (SAMS) is HUDs primary system of record for tracking and accounting for properties acquired by HUD following payment of a claim for insurance benefits.

Contractors may access a PDF version of the SAMS User's Guide at, http://www.hud.gov:80/offices/hsg/sfh/reo/sams/samsguide.cfm.

FHA Connection - The FHA Connection is an Internet based system through which

Mortgagees report the status of insured loans. Additionally, the FHA Connection allows HUD to post information of interest to Mortgagees, including but not limited to, a roster of FHA approved

Appraisers.

Single Family Data Warehouse (SFDW) The Single-Family Data Warehouse is a repository of all single family data from other databases within HUD.

Single Family Default Monitoring System (SFDMS/ F42D) The Single-Family Default

Monitoring System is the system of record that is utilized by lenders and servicers to record borrower default and lender loss mitigation activities. The system is used by HUD to monitor lender compliance.

Asset Disposition and Management System (ADAMS/ P260)The Real Estate Owned (REO)

Case Management system utilized by HUD staff and lenders relative to the disposition of HUDs

REO properties.

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:

Records Management by Federal Agencies (44 USC 3101);

https://www.archives.gov/about/laws/fed-agencies.html

Disposal of Records (44 USC 3303);

https://www.archives.gov/about/laws/disposal-of-records.html

Government Paperwork Elimination Act (TITLE XVII - Public Law 105-277);

https://obamawhitehouse.archives.gov/omb/fedreg_gpea2/

E-Sign Act (TITLE I - Public Law 106-229);

https://www.congress.gov/bill/106th-congress/senate-bill/761

HUD Handbook 2228.1;

https://www.hud.gov/program_offices/administration/hudclips/handbooks/admh/2228.1 https://www.archives.gov/about/laws/fed-agencies.html https://www.archives.gov/about/laws/disposal-of-records.html https://obamawhitehouse.archives.gov/omb/fedreg_gpea2/ https://www.congress.gov/bill/106th-congress/senate-bill/761 https://www.hud.gov/program_offices/administration/hudclips/handbooks/admh/2228.1

HUD Acquisition Regulation (HUDAR) and HUD Procurement Handbook 2210.3;

http://hudatwork.hud.gov/HUD/cpo/po/arc/regs/hudar-HPH

HUD Records Disposition Schedules Handbook 2225.6;

https://www.hud.gov/program_offices/administration/hudclips/handbooks/admh/2225.6

Records Management Handbook;

https://www.hud.gov/program_offices/officeofadministration/cao/recordsmgmt/recordsmgmtguid es

General Record Schedules (Part 1227, Subchapter B - 36 CFR 1220-1236;

Guidance, Policies Regulations | HUD.gov / U.S. Department of Housing and Urban Development (HUD).

The contractor shall have the ability to receive and transmit documents, data files and e-mail to participants on the sales team initiative using the Internet. The Contractor's connectivity to the

Internet shall be through a reliable Internet Service Provider (ISP). The ISP service shall be of sufficient capacity to sustain the volume of traffic associated with the transmission of documents, e-mails and data files between participants. Internet access shall be through

Internet browsers that support Secured Socket Layer (SSL) communications protocol and File

Transfer Protocol (FTP). The Contractor shall insure that the FTP capability can transfer large data files back and forth to HUD. The contractor shall bear the expenses of providing the required Internet capabilities.

Internet access shall be through Internet browsers that support Secured Socket Layer (SSL) communications protocol and File Transfer Protocol (FTP). All data accessed and transferred from the external source to HUD should comply with all Federal guidelines pertaining to interconnection and secure data exchange between two organizations. This will include (but not limited to) guidelines for standard Internet secured connections and data protection. Specifically, all data should be transmitted to HUD via a secure telecommunication connection, using

Hypertext Transfer Protocol (HTTPS). Contents of said transmission must be encrypted, (not transferred in a clear text), using at a minimum 128-bit encryption employing Secure Socket

Layer (SSL). The Connector shall bear the expenses of providing the required Internet capabilities. Email transmission will not be required to be encrypted.

1.4 Description of Services

The Department of Housing and Urban Development (HUD), Office of Finance and Budget (FAB) requires contractor support to strengthen the asset sales function relative to program compliance with existing loan sale programs. The Contractor shall conduct analytics and provide monitoring services.

The Contractor shall provide Independent Verification and Validation (IV&V) support services to monitor and validate the quality and effectiveness of out-sourced infrastructure managed services through program oversight, analysis and subsequent recommendations to the

Government. The IV&V support services shall include:

https://www.hud.gov/program_offices/officeofadministration/cao/recordsmgmt/recordsmgmtguides https://www.hud.gov/program_offices/officeofadministration/cao/recordsmgmt/recordsmgmtguides https://www.hud.gov/program_offices/officeofadministration/cao/recordsmgmt/recordsmgmtguides https://www.hud.gov/program_offices/officeofadministration/cao/recordsmgmt/recordsmgmtguides

1. Determine lender compliance with loss mitigation,

2. Review loan eligibility for single family loan sales

3. Analyze post sale requirements to include analysis of purchaser reported disposition outcomes

4. Review and monitor post settlement issues

5. Provide recommendations on how to assess and resolve program risks

6. Provide risk mitigation strategies

7. Conduct an annual review of bidder qualifications processes

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 base period of 12 months and four 12-month option periods

1.7 Place of Performance

The services to be performed under this contract shall be performed at the Contractor facility with the exception of activities to be performed on bid day. Bid day activities shall be executed at the Office of Asset Sales located at 451 7th Street, SW, Washington, DC 20410 in a conference room designated by the OAS or virtually if the sale is held virtually.

1.8 Hours of Operation

The Contractor shall be available between the coverage hours of 6:00 am to 6:30 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/Restrictions

1. HUD reserves the right at all times to approve the structure, size, timing, budget, composition, and any other aspect of the note sale will be reimbursed on a cost reimbursable basis; no profit or fee will be paid.

2. The Contractor may not participate as a bidder or as an advisor to a bidder on any other sales transaction involving the assets in this Project conducted by HUD for the life of this Contract and any extensions.

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 30-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

Accepted Quality Levels (AQLs) The minimum acceptable quality levels (AQLs) Affiliate means, with respect to any specified Person, any other Person who or which, directly or indirectly through one or more intermediaries, Controls, is controlled by or is under common

Control with such specified Person.

Agreement means this Conveyance, Assignment and Assumption Agreement and any exhibits and schedules hereto.

Basis Point (BP) is defined as one hundredth of one per cent (0.01 per cent), so 100 basis points (bps) is equal to 1 percentage point.

Business/Workdays - Every official workday 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.

Continental United States (CONUS) 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.

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.

Control shall mean, as to any Person, the power, directly and/or indirectly through one or more intermediaries, to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. The term

"Controlled shall have a correlative meaning.

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.

FHA means the Federal Housing Administration, an administrative unit within the United States

Department of Housing and Urban Development, and any successor there to.

FHA-Insured Loans means single-family FHA-insured mortgage loans that are either (a) owned and serviced by a Prior Servicer or (b) serviced (but not owned) by a Prior Servicer, but with respect to which the Prior Servicer is authorized by the holder to purchase such mortgage loans from, or submit Insurance Claims on behalf of, the holder.

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.

HUD means the Secretary of Housing and Urban Development or the Department of Housing and Urban Development, as applicable.

Inherently Governmental Functions are activities that require either the exercise of discretion in applying Government authority, or the making of value judgments in making decisions for the

Government.

Insurance Claim means, with respect to any Mortgage Loan, the claim made by Prior Servicer for payment by HUD upon the assignment of the defaulted FHA-Insured Mortgage Loan.

Key Personnel means contractor personnel that are evaluated in a source selection process and that may be required to be used in the performance of a contract by the Key Personnel clause. When key personnel are used as an evaluation factor in best value procurement, offerors can be rejected if they do not have firm commitments from the persons that are listed in the proposal. Key personnel are also contractor personnel that cannot change without COR/CO approval.

Legal Documents means, the participating servicer agreement (P-Servicer Agreement), conveyance assignment and assumption agreement (CAA), and other similar legal documents, as determined during the note sales process.

Lien means any lien, Claim, mortgage, security interest, pledge, charge, servitude or other encumbrance of any kind.

Mortgage means the mortgage, deed of trust or other instrument, including any amendments or modifications, creating a lien on or ownership interest in a Mortgaged Property securing a Note.

Note- means a mortgage note which is a promissory note associated with a FHA insured mortgage loan; it is a written promise signed by the borrower to repay a specified sum of money plus interest at a specified rate and length of time to fulfill the promise.

Non-personal Services Contract A contract under which the personnel rendering the services are not subject, either by the contract terms or by the manner of its administration, to the supervision and control usually prevailing in relationships between the Government and its employees.

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 requirements 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.

Person means any individual, corporation, Limited Liability Company, partnership (general or limited), firm, joint venture, association, joint-stock company, trust, estate, unincorporated organization, governmental or regulatory body or other entity.

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

Prior Servicer or Participating Servicer means, with respect to any Mortgage Loan, the participating FHA servicer from which the Mortgage Loan was assigned to HUD and from which the servicing for such Mortgage Loan will be transferred to the New Servicer.

Purchaser means the person or entity identified in the "Agreement or identified as the winning bidder.

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.

Real Estate Owned (REO) means Mortgaged Property to which title has been taken as a result of a foreclosure, acceptance of a deed-in-lieu of foreclosure, or any comparable proceeding.

Reserve Price means the lowest price HUD is willing to accept for the loans it is selling.

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.

Shall Used to express what is mandatory.

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.

Subordinate Contracting Officer Representative (SCOR) is an individual designated by the

Contracting Officer to assist in providing technical direction and monitoring performance under the contract.

Success Fee means the compensation paid to the Contractor for overall management of the sales process and successfully executing the sale on Bid Day. It is calculated as a percentage of the UPB recovered.

Work Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

ACOR Alternate Contracting Officer's Representative.

ALD Aggregate Loan Database

AQL Acceptable Quality Level

ARF Asset Review File

BPO Brokers Price Opinion

CAA Conveyance Assumption and Assignment Agreement

CD Compact Disc

CFO or OCFO Office of the Chief Financial Officer

CO Contracting Officer

COB Close of Business

COR Contracting Officer Representative

CPO Chief Procurement Officer

DACA Days After Contract Award

DASP Distressed Asset Stabilization Program

EST Eastern Standard Time (U.S.)

FHA Federal Housing Administration

GFP Government Furnished Property

HUD U.S. Department of Housing and Urban Development

HUDAR HUD Acquisition Regulation

HVLS HUD-Held Vacant Loan Sale

HNVLS-HUD-held Non-Vacant Loan Sale

HUDAR HUD Acquisition Regulation

HVLS HUD-Held Vacant Loan Sale

IPT Integrated Project Team

ISA Interim Servicer Agreement

LTV Loan-to-Value Ratio

NTE Not-to-Exceed

NLT Not Later Than, or No Later Than

OAS Office of Asset Sales

OCFO Office of the Chief Financial Officer of HUD

OCPO Office of the Chief Procurement Officer

OGC Office of General Counsel

OMB Office of Management and Budget

P-Servicer Participating Servicer

PFA Program Financial Advisor

PM Project Manager

PNA Physical Needs Assessment

POC Point of Contact

POP Period of Performance

PPM Project Planning and Management

PSA Participating Servicer Agreement

QA Quality Assurance

QASP Quality Assurance Surveillance Plan

QCP Quality Control Plan

QCR Quality Control Review

REO Real Estate Owned

SAMS Single Family Acquired Asset Management System

SCOR Secondary Contracting Officer Representative

SFIS Single Family Insurance System

SFLS Single Family Loan Sale Program

SSA Systems Security Administrator SSA Systems Security Administrator

TBD To be determined

TS Transaction Specialist

UPB Unpaid Principal Balance

WSR Weekly Status Report

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 not furnish the GFP shown below.

3.1 Government Services

The COR will coordinate, through the Subordinate COR(SCOR), the tasks of this requirement.

3.2 Facilities

The Government will provide a bid day conference room for executing the auction on bid day, if necessary. The specific conference room number and location within the building will be provided to the Contractor prior to the meetings and bid day

3.3 Equipment

The Government will provide no equipment.

3.4 Materials

Copies of required materials may be provided to the Contractor in hard copy or soft copy. All materials will remain the property of the Government and will be returned to the COR/SCOR upon request or at the end of the contract period. See HUDAR 2452.227-70, Government Information (HUDAR | HUD.gov / U.S. Department of Housing and Urban Development (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, equipment and supplies required to perform the work under this requirement that are not listed under Government Furnished Property and Services.

4.2 Equipment

The contractor shall have the capability to receive and transmit documents, data files and e-mail to participants on the sales team initiative using the Internet. The Contractor's connectivity to the Internet shall be through a reliable Internet Service Provider (ISP). The ISP service shall be of sufficient capacity to sustain the volume of traffic associated with the transmission of documents, e-mails and data files between participants. Internet access shall be through Internet browsers that support Secured Socket Layer (SSL) communications protocol and File Transfer Protocol (FTP). The Contractor shall insure that the FTP capability can transfer large data files back and forth to HUD. The contractor shall bear the expenses of providing the required Internet capabilities.

Internet access shall be through Internet browsers that support Secured Socket Layer (SSL) communications protocol and File Transfer Protocol (FTP). All data accessed and transferred https://www.hud.gov/program_offices/cpo/hudar#part_2452.2 from the external source to HUD should comply with all Federal guidelines pertaining to interconnection and secure data exchange between two organizations. This will include (but not limited to) guidelines for standard Internet secured connections and data protection. Specifically all data should be transmitted to HUD via a secured telecommunication connection, using Hypertext Transfer Protocol (HTTPS). Contents of said transmission must be encrypted, (not transferred in a clear text), using at a minimum 128 bit encryption employing Secure Socket Layer (SSL). The Connector shall bear the expenses of providing the required Internet capabilities. Email transmission will not be required to be encrypted.

All memorandums, reports, databases, spreadsheets, and deliverables of any kind shall be provided to GTM in an electronic file format consistent with established HUD standards

4.3 Material

The contractor shall not furnish any material.

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 8:00am 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 work space 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 Asset Disposition Risk Assessment Analytics

Bi-monthly, the Contractor shall perform a risk assessment utilizing HUDs historical loan sales database, post-sale reports, OASs Standard Operating Procedures (SOP), audit findings, the Aggregate Loan Database (ALD) and any other risk-related data which shall be provided to the Contractor by the COR/SCOR. The assessment shall evaluate program risks and include data-driven analysis of policy options to mitigate areas of inherent risks to the loan sale program. The risk assessment, at a minimum, shall assess the following:

o inventory of defaulted FHA-insured loans sold in past sales o information pertaining to program participants (e.g., mortgagees, servicers) o potential note purchasers (e.g., private sector and non-profit bidders) o information concerning recoveries for single-family loan disposition options and loan resolution outcomes o market data to include market Brokers Pricing Opinions (BPOs), sale prices, claim costs, vacancies, and any other risk-relevant market data o OASs loan disposition strategies o lender compliance with loss mitigation o loans eligible for the loan sale o market changes that affect loan sales and other program risk assessments o risks relevant to reserve price, recoveries, other pricing and recovery related data and any inherent risks that affect program performance o any specific area of risk identified by the COR that impacts the loan sale program

Upon completion of each risk assessment, the Contractor shall submit to the COR an Asset Disposition Risk Analytics Report. The report shall include the findings of the assessment and make recommendations for any areas that may reduce current or future risks to loan sale performance. In addition, recommendations shall also include on what to evaluate each quarter.

The first report shall be submitted to the COR no later than 65 calendar days after contract award. Subsequent reports shall be submitted no later than five calendar days after the end of each assessment period.

5.1.1 Risk Assessment Analytics

Bi-monthly, the Contractor shall perform a risk assessment utilizing HUDs historical loan sales database, post-sale reports, OAS’s Standard Operating Procedures (SOP), audit findings, the Aggregate Loan Database (ALD) and any other risk-related data which will be provided to the Contractor by the COR/SCOR. The assessment shall evaluate program risks and include data-driven analysis of policy options to mitigate areas of inherent risks to the loan sale program. The risk assessment, at a minimum, shall assess the following:

o inventory of defaulted FHA-insured loans sold in past sales o information pertaining to program participants (e.g., mortgagees, servicers) o potential note acquirers (e.g., private sector and non-profit bidders) o information concerning recoveries for single-family loan disposition options and loan resolution outcomes o market data to include market Brokers Pricing Opinions (BPOs), sale prices, claim costs, vacancies, and any other risk-relevant market data o OASs loan disposition strategies o lender compliance with loss mitigation o loans eligible for the loan sale o market changes that affect loan sales and other program risk assessments o risks relevant to reserve price, recoveries, other pricing and recovery related data and any inherent risks that affect program performance o any specific area of risk identified by the COR that impacts the loan sale program

Upon completion of each risk assessment, the Contractor shall submit to the COR an Asset

Disposition Risk Analytics Report. The report shall include findings of the assessment and make recommendations for any areas that may reduce current or future risks to loan sale performance. In addition, recommendations shall also include on what to evaluate each quarter.

The first report shall be submitted to the COR no later than 65 calendar days after contract award. Subsequent reports shall be submitted no later than five calendar days after the end of each assessment period.

Performance Standards Standard: Bi-monthly, the Contractor shall review HUD’s historical loan sales database, post-sale reports, OASs Standard Operating Procedures (SOP), audit findings, the Aggregate Loan Database (ALD) and any other risk-related data.

AQL: Deviation is no later then 5 business days.

Deliverables A001 Asset Disposition Risk Assessment

5.1.2 Pre-Sale Compliance Review

Upon notification from the COR of an upcoming sale, the Contractor shall review Bidder qualification and confidentiality agreement packages including supporting documentation to verify each entity’s identity and qualifications. This review shall include checking various websites such as, sam.gov, irs.gov, and external systems like PACER or similar. The Contractor shall submit a Pre-Sale Compliance Review Report to the COR two business days prior to the bid date. (Estimated four pre-sale compliance reviews per period of performance).

Performance Standards Standard: The Contractor shall review Bidder qualification and confidentiality agreement packages to verify each entity’s identity and qualifications. This review shall include checking various websites such as, sam.gov, irs.gov, and external systems like PACER or similar. The Contractor shall submit a Pre-Sale Compliance Review Report to the COR two business days prior to the bid date. (Estimated four pre-sale compliance reviews annually) AQL: Zero Deviation Deliverables

A002 Pre-Sale Compliance Review Report

5.2 Bidder Qualifications Review

The Contractor shall conduct for each post-sale or on post-sale data to inform and to ensure that the Loan Sale bidder qualification process is operated and managed in compliance with the requirements of the program. It is estimated that there will be up to four post sales each year.

For each sale, the Contractor shall review and analyze bidder qualification packages from the loan sales provided by the COR. The review shall verify that each bidder met the qualification requirements detailed in the HUD bidder qualification procedures documentation. This review shall also include a reverification of the requirements to ensure that they remain applicable. The Contractor shall submit a Bidder Qualification Analysis Report (BQAR) with findings and recommendations for improvements to the COR no later than five business days after the end of each review period.

Performance Standards

a) Standard: On an annual basis (yearly), the Contractor shall review and analyze bidder qualification packages from the loan sales identified by OAS. The analysis shall verify that each bidder qualified by the Transactions Specialist (TS) or OAS met the qualification requirements detailed in the HUD bidder qualification procedures documentation.

AQL: Within 5 days of OAS identifying the loan sales to be analyzed, the contractor shall begin working on the review.

b) Standard: The review shall verify that each bidder met the qualification requirements detailed in the HUD bidder qualification procedures documentation. This review shall also include a reverification of the requirements to ensure that they remain applicable. Bidder Qualification Analysis Report (BQAR) with findings and recommendations for improvements submitted to the COR no later than five business days after the end of each review period.

AQL: Zero Deviation

A003 Bidder Qualification Analysis Report (BQAR)

5.3 Purchaser Compliance with HUD’s Post Sale Reporting Requirement

On a quarterly basis, for past and new sales (as identified by the OAS), the Contractor shall select an review all purchasers post sales reports and purchaser retention data as outlined in the CAA and appropriate Riders and perform reviews and analyses of post-sale outcomes and retention data to determine whether purchasers retention documentation and other data are appropriate for the outcomes reported and whether the retention documentation confirms the loan sale resolution and outcomes reported by purchasers and whether the data confirms the integrity of the outcome reported.

The Contractor shall suggest what data shall be analyzed and how best analyze this data. At a minimum, the analyses should answer and, or inform the following:

o Did the purchaser retain the appropriate documentation as outlined in the CAA and appropriate Riders to the CAA and did this documentation support the integrity of the outcomes reported by purchasers.

o Did purchasers hold the Real Estate Owned (REO) properties out for the 30-day owner occupant exclusive listing period (First Look).

o Did purchasers achieve HUD mission outcomes as outlined and described in the CAA and CAA addendums.

o If the CAA specifically requires that foreclosure be avoided during a designated period after purchase, did the purchaser avoid foreclosure during the designated period.

o When applicable, were borrowers reviewed for loss mitigation in accordance with CFPB requirements for loss mitigation. If borrowers were reviewed for loss mitigation was a modification offered?

o If a modification was offered, what were the terms of modifications?

Performance Standards

a) Standard: Contractor shall review and analyze post-sale outcomes and retention data to determine whether purchasers retention documentation and other data are accurate and verifies the outcomes reported and whether the retention documentation confirms the loan sale resolution and outcomes with 15 days of receipt of purchaser documentation.

AQL: Within 30 days after receipt of purchaser documentation that supports reported outcomes, contractor shall submit a purchaser reporting compliance report quarterly detailing its analyses, findings and include recommendations to ensure policies, procedures, and practices for improving and capturing purchaser reporting requirements that supports the reported outcomes.

Deliverables

A004 Purchaser Compliance with Post Sale Reporting Requirements

5.4 Pending Changes in Laws and Regulations

The Contractor shall monitor proposed/pending changes in laws and regulations potentially affecting OASs asset disposition program and provide an assessment of the potential impacts of proposed/pending changes on OASs note sale operations. The Contractor shall provide a report annual of its findings, assessments, and recommendations each year to the COR/SCOR.

Performance Standards Standard: Contractor shall monitor proposed/pending changes in laws and regulations potentially affecting OASs asset disposition program and provide an assessment of the potential impacts of proposed/pending changes on OASs note sale operations. The Contractor shall provide a report annually of its findings, assessments, and recommendations. Thirty (30)-days after the annual report is due.

Deliverables

A005 Annual Report on Pending Laws and Regulations

5.5 Breach and Financial Cure Analysis

The Contractor shall become familiar with the terms of each purchasers’ CAA, each Participating Servicers Agreement (PSA), appropriate riders and other loan sale documents that impact contract breaches. At the direction of the COR/SCOR/ACOR:

The Contractor shall become familiar with the terms of each purchasers CAA, each Participating Servicers PSA, appropriate riders and other loan sale documents that impact breaches.

The Contractor shall periodically train purchasers in the use of data collection web portals developed or modified to ensure that purchasers know how to use the portals and are aware of changes or updates to the platform.

The Contractor shall also perform regular analysis of the post-sale reporting data and process to ensure data quality and data integrity.

The Contractor shall review specific contract breach requests for HUD-Held Vacant Loan Sale (HVLS) and Forward loans and perform an analysis of each of contract breach request relative to the terms of the purchasers CAA and PSA as applicable. The analysis shall include evaluating the validity of the contract breach of the CAA identified in the request, the appropriateness of documentation provided by the purchaser to support the contention of a contract breach, and any response, data, or feedback received from P-Servicers relative to each contract breach cited in the request. The Contractor shall then provide a recommendation in the form of the Breach Analysis and Financial Cure Report to the OAS on how to resolve each contract breach request reviewed.

The Contractor shall also evaluate all purchaser requests for financial cures to resolve contract breaches and provide a recommendation to OAS. The evaluation of monetary cures shall encompass analyzing the amount requested by purchaser to determine reasonableness based on the circumstances and the data or other information provided by purchaser to support the contract breach. If the Contractor determines that the amount of the financial cure is not reasonable, then the Contractor shall also provide an estimate in the Breach Analysis and Financial Cure Report to OAS (with supporting documentation) of an amount that the Contractor deems to be reasonable

The contractor shall also keep track of the amount of funds disbursed to purchasers for financial cures of breaches and the amount of claim funds returned to HUD from the participating servicers for notes that received financial cures. The contractor shall analyze this data to determine the net results of these cures relative to the claim funds returned to HUD from Participating Servicers and provide this information in the provide an estimate in the Breach Analysis and Financial Cure Report. The Contractor shall be available for meetings or conference calls to discuss and resolve contract breach requests and financial cures with purchasers and participating servicers.

Performance Standards Standard: Within 10 business days of being tasked by COR/SCOR/ACOR, the Contractor will provide the Breach Analysis and Financial Cure Report for the breach. Estimated Annual Breach Volume of breaches to analyze for all single family sales: 50 AQL: Report due 15 business days after being tasked with the breach review.

A006 Breach Analysis and Financial Cure Report.

5.6 Monthly Status Meetings

The Contractor shall meet monthly with the COR/SCOR/ACORs and other members of the OAS team to discuss the status of each of the requirements of this contract. The Contractor shall provide an oral and written status report (Status Agenda) to the COR/SCOR on the same day as the meeting but prior to the meeting start time, seek feedback, clarifications, and or discuss any other issues specific to performing the requirements of this contract. The meetings shall be held by teleconference. The Contractor shall also be responsible for providing meeting minutes from these meetings.

Performance Standards Standard: Contractor shall…