Attachment 1_Statement of Objectives _Portfolio Advisory and Asset Disposition.pdf

Attachment 1 – Statement of Objectives (SOO)

Portfolio Advisory and Asset Disposition Support Services

STATEMENT OF OBJECTIVES (SOO)

I. Purpose:

The Government National Mortgage Association (Ginnie Mae) is seeking qualified contractor that can provide Portfolio Advisory and Asset Disposition (Sales Transaction) services to include:

• Analyze and create reports of all loans being serviced by the Master Sub-

Servicers (MSSs).

• An analysis of the overall government Mortgage-Backed Securities (MBS), Whole loan and MSR market.

• Insight into the valuation and marketability of Ginnie Mae’s portfolio’s regarding hold or sell.

• Develop and enhance GNMA’s portfolio management and competence for best execution analysis.

• Coordinate the marketing and sale of GNMA’s MBS, whole loan and or MSR portfolio(s)

• Ginnie Mae loan sale program encompasses the sale of three types of defaulted loans: Home Equity Conversion Mortgage (HECM) and tails, single family forward notes/other government single family notes, multifamily/healthcare, notes both pooled and unpooled loans.

II. Scope or Mission:

Ginnie Mae seeks qualified contractors with demonstrated experience to provide

Portfolio Advisory services and potential sale recommendations regarding the market dynamics affecting each of its Mortgage programs:

• Single Family - FHA, VA, USDA, PIH loans

• Multifamily - FHA and USDA loans

• Reverse - Home Equity Conversion Mortgage (HECM) loans

• Pooled - Collection of performing loans (FHA insured)

• Non-Pooled (Whole) - Non-performing and/or non-conforming loans

(unqualified for insurance)

The Portfolio Advisory services will include:

Functional Activities:

• Analysis of sell vs hold and the trading activity and factors affecting valuations and marketability of the overall government portfolios, whole loan, MBS and

MSR markets.

• Guidance on how to better manage and maximize the value of the Ginnie Mae owned portfolios.

• Servicing, due diligence and quality control analysis.

• Asset remediation and asset disposition recommendations.

• Analysis of critical variables when marketing the HECM portfolio and potential disposition process

MSS Portfolio Oversight Support:

• Pooling Advisory Support

• Reverse Loan Servicing

• Default Management

• Loss Mitigation Strategies

• Data Validation

• Claims Management

• Reporting

Data and Workflow support:

• Advisory Workflow Solution: The contractor shall utilize a secured integrated workflow solution to manage advisory tasks, ensuring end-to-end transparency, auditability, and real-time status tracking of all portfolio recommendations and remediation activities.

• Ginnie Mae Data Integration: The contractor workflow solution must possess the capability to ingest all relevant advisory data, market analysis, and portfolio metrics into the Ginnie Mae secured repository or an external repository chosen by Ginnie Mae. This data must be formatted and delivered to support advanced downstream analytics, automated reporting, and trend analysis.

The Transaction Specialist services will include:

• Competent contractor that is prepared, capable and staffed to perform the complete range of services expected of an Issuer under the Ginnie Mae MBS program.

• Contractor shall gather and provide appropriate information to the investor community about the assets to be sold, ensure that investors are qualified to purchase, market the offering to maximum number of investors to produce best pricing to the government, assist with selling and closing the transactions and conduct post-closing tasks to transfer assets to winning bidders.

• Evaluation of the potential portfolio buyer and investor universe and their capacity to take on additional portfolios, factoring timing considerations.

• Analysis on how to properly structure or subdivide the portfolio, balancing the need to maximize proceeds while enabling an acquiring entity to sustain the portfolio o Structuring considerations should include trade-off considerations such as separating certain assets for sale or combining assets to cross-subsidize

• Analysis on ‘Selling as-is” o How much asset remediation is necessary?

o Determine the need for potential sale subsidies such as indemnifications and waivers to increase the pull-through rate

• Industry analysis and validation of issuers designated by Ginnie Mae

• Mark-to-Market valuation and accounting analysis, if/when the decision is made to sell

• Services should include Due Diligence, Transition, Project Management, Loan

Sale Initiatives Services, Loan Settlement/Closing Services, Post sale Settlement and Support, Breach Coordination and Monitoring, Claims filing, Ad Hoc Task and Third-Party Reports.

III. Period and Place of Performance.

Period: one (1) 12-month base period with four (4) 12-month option periods

Place: The services shall be performed at Contractor’s site, may require site visit to

MSSs, with sale day performed at HUD HQ.

IV. Background:

Ginnie Mae provides a full faith and credit guarantee to investors, fully backed by the

U.S. government, which makes its MBS program lucrative.

It is imperative that approved Issuers comply with the stipulated requirements to maintain their approved status:

• Guaranty Agreement (as applicable)

• Ginnie Mae MBS Guide o Satisfy continuing eligibility requirements per the MBS guide

In a quest to maintain the integrity of the program and manage continuity, issuers are extinguished from the program when in default. Having terminated issuers, the defaulted issuer portfolio can either be held by the MSS (master sub-servicer), servicing them till maturity or they can be disposed of via a sale.

In a bid to determine the optimal asset management and/or disposition strategy for defaulted issuer portfolio, Portfolio Advisory and Asset Disposition (Sales

Transaction) services are being sought that will enhance asset management (post issuer-extinguishment) and implement the optimal disposition choice for each defaulted issuer portfolio. All things considered, the focus remains ensuring exposure to risk is mitigated and disruption to the MBS program is minimized.

V. Performance Objectives:

The contractor will use the required performance objectives listed below to determine the best solution, which will be provided in the form of a detailed Performance Work

Statement (PWS) in response to this request:

• Provide Portfolio Advisory and Asset Disposition (Sales Transaction)

Services to support the portfolio management and loan sale program

• Gather and provide appropriate information to the investor community about the assets to be sold

• Ensure that investors are qualified to purchase

• Market the offering to the maximum number of investors to produce best pricing to the government

• Assist with selling and closing the transactions

• Coordinate with MSSs to conduct post-closing tasks to transfer assets to winning bidders,

• The Portfolio Advisory and Asset Disposition services should include:

o Due Diligence o Transition o Project Management o Loan Sale Initiatives Services o Loan Settlement /Closing Services o Post Sale Settlement and Support o Breach Coordination and Monitoring o Claims filing o Third-Party Reports o Ad Hoc Tasks

VI. Operating Constraints:

The Portfolio Advisory and Asset Disposition services identified in this requirement shall comply with all applicable rules, regulations, laws, and standards as mandated by the

U.S. Department of Housing and Urban Development (HUD) and the Federal

Government.