Attachment 2 - QASP.doc

Attachment 2 - Quality Assurance Surveillance Plan (QASP), 86615524R00007

Quality Assurance Surveillance Plan (QASP)

Multifamily Master Subservicer

31 Vision

1 INTRODUCTION

1.1 Purpose

1.2 Performance Management Approach

1.3 Performance Management Strategy

2 ROLES AND RESPONSIBILITIES

2.1 The Contracting Officer

2.2 The Contracting Officer Representative

3 IDENTIFICATION OF REQUIRED PERFORMANCE STANDARDS/QUALITY LEVELS

4 METHODOLOGIES TO MONITOR PERFORMANCE

4.1 Surveillance Techniques

4.2 Customer Feedback

4.3 Acceptable Quality Levels

5 QUALITY ASSURANCE DOCUMENTATION

5.1 The Performance Management Feedback Loop

5.2 Monitoring Forms

6 ANALYSIS OF QUALITY ASSURANCE ASSESSEMENT

6.1 Determining Performance

6.2 Reporting

6.3 Reviews and Resolution

6.4 Surveillance Matrix

Appendix 1 - Surveillance Matrix Appendix 2 - Corrective Action Report (CAR) Appendix 3 - Customer Complaint Record Appendix 4 - Performance Assessment Report (PAR)

Quality Assurance Surveillance Plan (QASP) Multifamily Master Subservicer

1 Vision

The Government National Mortgage Association (Ginnie Mae) seeks to obtain the services of an Issuer approved under the Ginnie Mae multifamily (MF) mortgage-backed securities (MBS) program with the demonstrated experience and management capability to service pools of MF loans obtained from Issuers that have been subject to a T/E/S under the MBS program (Extinguished Issuer). These pools of loans include construction loans, project loans and other MF loan products for apartment buildings, hospitals, and residential care facilities including nursing homes, assisted-living facilities, and board and care facilities. In addition, the Issuer shall provide support services to Ginnie Mae in terminating MF Issuers from Ginnie Mae’s Mortgage-Backed Securities (MBS) program and extinguishing their interests in the pools of mortgages backing MBS.

1 INTRODUCTION

This Quality Assurance Surveillance Plan (QASP) is pursuant to the requirements listed in the Performance Work Statement (PWS) entitled Multifamily Master Sub Servicer. This plan sets forth the procedures and guidelines Ginnie Mae will use in ensuring the required performance standards or service levels are achieved by the Contractor.

1.1 Purpose

1.1.1 The purpose of the QASP is to describe the systematic methods used to monitor performance and to identify the required documentation and the resources to be employed. The QASP provides a means for evaluating whether the Contractor is meeting the performance standards/quality levels identified in the PWS and the Contractor's Quality Control Plan (QCP), and to ensure that the Government pays only for the level of services received.

1.1.2 This QASP defines the roles and responsibilities of all members of the Integrated Project Team (IPT), identifies the performance objectives, defines the methodologies used to monitor and evaluate the Contractor's performance, describes quality assurance documentation requirements, and describes the analysis of quality assurance monitoring results.

1.2 Performance Management Approach

1.2.1 The PWS structures the acquisition around "what service or quality level is required", as opposed to "how the Contractor should perform the work" (i.e., results, not compliance). This QASP will define the performance management approach taken by Ginnie Mae to monitor and manage the Contractor's performance to ensure the expected outcomes or performance objectives communicated in the PWS are achieved. Performance management rests on developing a capability to review and analyze information generated through performance assessment. The ability to make decisions based on the analysis of performance data is the cornerstone of performance management; this analysis yields information that indicates whether expected outcomes for the project are being achieved by the Contractor.

1.2.2 Performance management represents a significant shift from the more traditional Quality Assurance (QA) concepts in several ways. Performance management focuses on assessing whether outcomes are being achieved and to what extent. This approach migrates away from scrutiny of compliance with the processes and practices used to achieve the outcome. A performance-based approach enables the Contractor to play a large role in how the work is performed, as long as the proposed processes are within the stated constraints. The only exceptions to process reviews are those required by law (federal, state, and local) and compelling business situations, such as safety and health. A "results focus" provides the Contractor flexibility to continuously improve and innovate over the course of the contract as long as the critical outcomes expected are being achieved and/or the desired performance levels are being met.

1.3 Performance Management Strategy

1.3.1 The Contractor is responsible for the quality of all work performed. The Contractor measures that quality through the Contractor's own Quality Control (QC) program. QC is work output, not workers, and therefore includes all work performed under this contract regardless of whether the work is performed by Contractor employees or by subcontractors. The Contractor's QCP will set forth the staffing and procedures for self-inspecting the quality, timeliness, responsiveness, customer satisfaction, and other performance requirements in the PWS. The Contractor will develop and implement a performance management system with processes to assess and report its performance to the designated government representative. This QASP enables the Government to take advantage of the Contractor's QC program.

1.3.2 The Government representative(s) will monitor performance and review performance reports furnished by the Contractor to determine how the Contractor is performing against communicated performance objectives. The Contractor will be responsible for making required changes in processes and practices to ensure performance is managed effectively.

2 ROLES AND RESPONSIBILITIES

The following personnel shall oversee and coordinate surveillance activities.

2.1 The Contracting Officer

The Contracting Officer (CO) is responsible for monitoring contract compliance, contract administration, and cost control and for resolving any differences between the observations documented by the Contracting Officers Representative (COR) and the Contractor. The CO will designate one full-time COR as the government authority for performance management. The number of additional representatives serving as technical inspectors depends on the complexity of the services measured, as well as the Contractor's performance, and must be identified and designated by the CO.

2.2 The Contracting Officer Representative

The COR is designated in writing by the CO to act as his or her authorized representative to assist in administering a contract. COR limitations are contained in the written appointment letter. The COR is responsible for technical administration of the project and ensures proper government surveillance of the Contractor's performance. The COR is not empowered to make any contractual commitments or to authorize any contractual changes on the Government's behalf. Any changes that the Contractor deems may affect contract price, terms, or conditions, shall be referred to the CO for action. The COR will have the responsibility for completing QA monitoring forms used to document the inspection and evaluation of the Contractor's work performance. Government surveillance may occur under the inspection of services clause for any service relating to the contract.

3 IDENTIFICATION OF REQUIRED PERFORMANCE STANDARDS/QUALITY LEVELS

The required performance standards and/or quality levels are included in the PWS and in Appendix 1, "Surveillance Matrix". If the Contractor meets the required service or performance level, it will be paid the monthly amount agreed on in the contract.

4 METHODOLOGIES TO MONITOR PERFORMANCE

4.1 Surveillance Techniques

In an effort to minimize the performance management burden, simplified surveillance methods shall be used by the Government to evaluate Contractor performance when appropriate. The primary methods of surveillance are:

· 100% Inspection - Each month, the COR, shall review the generated documentation and enter summary results into the Surveillance Activity Checklist.

· Periodic Inspection - The COR with FRC typically performs the periodic inspection on an annual basis.

4.2 Customer Feedback

The Contractor is expected to establish and maintain professional communication between its employees and customers. The primary objective of this communication is customer satisfaction. Customer satisfaction is the most significant external indicator of the success and effectiveness of all services provided and can be measured through customer complaints.

Performance management drives the Contractor to be customer focused through initially and internally addressing customer complaints and investigating the issues and/or problems. The customer always has the option to communicate complaints to the CO and/or COR as opposed to the Contractor.

Customer complaints, to be considered valid, must set forth clearly and in writing the detailed nature of the complaint, must be signed, and must be forwarded to the COR.

Customer feedback may also be obtained either from the results of formal customer satisfaction surveys or from random customer complaints.

4.3 Acceptable Quality Levels

The Acceptable Quality Levels (AQLs) included in Appendix 1, "Surveillance Matrix", for Contractor performance are structured to allow the Contractor to manage how the work is performed. For certain critical activities such as those involving Multifamily Master Sub Servicer, the desired performance level is established at 100 percent. Other levels of performance are keyed to the relative importance of the task to the overall mission performance.

5 QUALITY ASSURANCE DOCUMENTATION

5.1 The Performance Management Feedback Loop

The performance management feedback loop begins with the communication of expected outcomes. Performance standards are expressed in the PWS and are assessed using the performance monitoring techniques shown in Appendix 1.

5.2 Monitoring Forms

The Government's QA surveillance, accomplished by the COR, may be reported using the following monitoring forms: Appendix 2 - "Corrective Action Report (CAR)", Appendix 3 - "Customer Complaint Record", and Appendix 4 "Performance Assessment Report" (PAR). The forms, when completed, will document the Government's assessment of the Contractor's performance under the contract to ensure that the required results are being achieved. The COR will retain a copy of all completed QA surveillance forms.

6 ANALYSIS OF QUALITY ASSURANCE ASSESSEMENT

6.1 Determining Performance

The Government will use the monitoring methods cited to determine whether the performance standards/service levels/AQLs have been met. If the Contractor has not met the minimum requirements, it may be asked to develop a corrective action plan to show how and by what date it intends to bring performance up to the required levels.

6.2 Reporting

At the end of each month, the COR will prepare a written report summarizing the overall results of the quality assurance surveillance of the Contractor's performance. This written report, which includes the Contractor's submitted monthly report and the completed quality assurance monitoring forms, will become part of the QA documentation. It will enable the Government to demonstrate whether the Contractor is meeting the stated objectives and/or performance standards, including cost/technical/scheduling objectives.

6.3 Reviews and Resolution

6.3.1 The COR may require the Contractor's project manager, or a designated alternate, to meet with the CO, PM, and/or other Government IPT personnel as deemed necessary to discuss performance evaluation. The COR will define a frequency of in-depth reviews with the Contractor, including appropriate self-assessments by the Contractor; however, if the need arises, the Contractor will meet with the COR as often as required or per the Contractor's request. The agenda of the reviews may include:

· Monthly performance assessment data and trend analysis

· Issues and concerns of both parties

· Projected outlook for upcoming months and progress against expected trends, including a corrective action plan analysis

· Recommendations for improved efficiency and/or effectiveness

6.3.2 The CO and COR must coordinate and communicate with the Contractor to resolve issues and concerns regarding marginal or unacceptable performance.

6.3.3 The COR and Contractor should jointly formulate tactical and long-term courses of action. Decisions regarding changes to metrics, thresholds, or service levels should be clearly documented. Changes to service levels, procedures and metrics will be incorporated as a contract modification at the discretion of the CO.

6.4 Surveillance Matrix

The Surveillance Matrix (Appendix 1) is the list of performance objectives and standards that must be performed by the Contractor. This matrix details the method of surveillance the COR will use to validate and inspect these performance elements. Inspection of each element will be documented in the COR file.

Performance objectives define the desired outcomes. Performance standards define the level of service required under the contract to successfully meet the performance objective. The inspection methodology defines how, when, and what will be assessed in measuring performance. The Government performs surveillance, using this QASP, to determine the quality of the Contractor's performance as it relates to the performance element standards. The PRS should be used to form the foundation of the COR's inspection checklist.

In evaluating the quality of contractors performance, the following performance ratings may be used.

Performance Rating Criteria

Excellent / Outstanding

Performance meets contractual requirements and exceeds many to the Governments benefit. The contractual performance of the element or sub-element being assessed was accomplished with few minor problems for which corrective actions taken by the contractor was highly effective.

Very Good

Performance meets contractual requirements and exceeds some to the Governments benefit. The contractual performance of the element or sub-element being assessed was accomplished with some minor problems for which corrective actions taken by the contractor was effective.

Satisfactory

Performance meets contractual requirements. The contractual performance of the element or sub-element contains some minor problems for which corrective actions taken by the contractor appear or were satisfactory.

Marginal

Performance does not meet some contractual requirements. The contractual performance of the element or sub-element being assessed reflects a serious problem for which the contractor has not yet identified corrective actions. The contractors proposed actions appear only marginally effective or were not fully implemented.

Unsatisfactory

Performance does not meet most contractual requirements and recovery is not likely in a timely manner. The contractual performance of the element or sub-element contains a serious problem(s) for which the contractors corrective actions appear or were ineffective.

In evaluating the quality of contractor’s performance, the following performance ratings may be used.

Performance

Rating Criteria

Appendix 1 - Surveillance Matrix

5.1 Plans, Reports and Standard Operating Procedures

5.1.1 Required Plans

5.1.1.1 The Contractor shall create and submit the following required plans. The plans shall be due 30 days from the contract award date.

Deliverables:

A001 Integrated T/E/S Plan (IEP) A002 MSS Response Plan (MRP) A003 Communication Plan A004 Integrated Data Collection Plan (IDCP) A005 Capacity Plan A006 Issuer Extinguishment Contingency Plan (IECP)

a) Submit all required plans within 30 days after contract award.

AQL: Zero Deviation

What: Review Deliverables

How: Review Deliverables

Frequency: After completion of task.

Who: OIPM

Incentive: 2% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

Standard(s): Inspection applies to all standards

5.1.1.2 The Contractor shall create and submit a Readiness Assessment Drill Plan that shall include the processes, procedures, and communication strategy for executing an issuer T/E/S. The plan shall also include testing the Contractor's software systems to assess for readiness to board and service Ginnie Mae MF loans. The Readiness Assessment Drill Plan shall be due six (6) months from the contract award date.

Deliverables:

A010 Readiness Assessment Drill Plan A020 Lessons Learned Summary Tracker

a) Submit the Readiness Assessment Drill Plan within 6 months after contract award.

AQL: Zero Deviation

What: Deliverables

How: Review Deliverables

Who: OIPM, OER

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.1.2 Reports

Deliverables:

A044 Template for Operational Reports, Accounting Reports, Cash Receipts Reports, Invoices/Cash Disbursements and Bank Statements and Escrow Reconciliations

a) Submit Template for Operational Reports, Accounting Reports, Cash Receipts Reports, Invoices/Cash Disbursements and Bank Statements and Escrow Reconciliations six (6) months from contract award date and reviewed and updated semi-annually.

What: Deliverables

How: Review Deliverable

Frequency: After completion of task.

Who: OIPM OCFO OSO

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.1.3 Standard Operating Procedures

Deliverables:

A033 SOPs

a) Submit all SOPs within six (6) months after the contract award date and semi-annually thereafter via email to the COR.

What: Deliverables

Frequency: After completion of task.

Who: OIPM

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.2 Termination, Extinguishment & Seizure (T/E/S) Support Services

5.2.1 The Contractor shall participate in the Organize Phase, Pre-Site Visit Phase, Site Phase and Site Closeout Phase of an Issuer T/E/S in accordance with the Contractor roles and responsibilities as MF MSS outlined in the MF MSS Portfolio Seizure Management SOP, Designated Document Custodian SOP and the Asset Acquisition SOP.

Deliverables:

A001 Integrated T/E/S Plan (IEP) A002 MSS Response Plan (MRP) A003 Communication Plan A004 Integrated Data Collection Plan (IDCP) A005 Capacity Plan

a) Submit plans within 24 hours of the CORs communication to MSS of Ginnie Maes intent to T/E/S.

What: Deliverables

Frequency: After completion of task.

Who: OIPM

Incentive: 2% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.2.2 During a T/E/S the Contactor shall participate in Site Visit Preparation Call and Daily Status Calls in accordance with the MF MSS Portfolio Seizure Management SOP.

a) Respond to Daily Status Calls in accordance with the MF MSS Portfolio Seizure Management SOP

Standard(s): Inspection applies to all standards

5.2.3 The Contractor shall perform Required Portfolio Analysis in accordance with the MF MSS Portfolio Seizure SOP.

Deliverables:

A034 Portfolio Analysis Report

a) Submit a portfolio analysis report that shall be due within 24 hours after completion of the analysis.

What: Deliverables

Frequency: After completion of task.

Who: OIPM

Incentive: 2% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.2.4 The Contractor shall identify construction draw requests that are in-flight and due immediately. The Contractor shall send a funding request to the MSS COR/OCFO for construction draws required immediately.

Deliverables:

A016 Notification of Immediate Construction Draw

a) Submit a funding request to the MSS COR/OCFO for required construction draws immediately.

What: Deliverables

Frequency: After completion of task.

Who: OIPM OCFO

Incentive: 2% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.2.5 The Contractor shall assist Ginnie Mae in monitoring the extraction of electronic files (e-files) related to the Ginnie Mae MBS portfolio from the extinguished Issuers servicing system(s). The Contractor shall assist Ginnie Mae in identifying and securing hardcopy files related to the Ginnie Mae portfolio.

5.2.6 The Contractor shall transfer, board and service small, medium, and large MF MBS portfolios in accordance with the Ginnie Mae MF MSS Portfolio Seizure Management Standard Operating Procedures (SOP) within five (5) business days from the date of the T/E/S. The Contractor shall transfer and service Mega MF Issuer portfolios within 10 business days from the date of T/E/S.

a) Transfer, board, and service small, medium, and large MF MBS portfolios in accordance with the Ginnie Mae MF MSS Portfolio Seizure Management Standard Operating Procedures (SOP) within five (5) business days from the date of T/E/S.

AQL: Within seven (7) business days from the date of T/E/S.

b) Transfer and service Mega MF Issuer portfolios within 10 business days from the date of T/E/S.

AQL: Within 12 business days from the date of T/E/S.

Standard(s): Inspection applies to all standards

5.2.7 The Contractor shall setup new Custodial Accounts within 5 business days in accordance with the MBS Guide. The Contractor shall reconcile custodial accounts within 5 business days and notify Ginnie Mae of any shortfalls within 5 business days. The Contractor shall submit a T&I Escrow report on the last business day of each month via email to the COR.

Deliverables:

A029 T&I Escrow Shortfalls Report

a) The Contractor shall set up new Custodial Accounts within 5 business days in accordance with the MBS Guide.

AQL: Zero Deviation

b) Reconcile custodial accounts within 5 business days and notify Ginnie Mae of any shortfalls within 5 business days.

AQL: Zero Deviation

c) Submit a T&I Escrow report on the last business day of each month via email to the COR

What: Deliverables

Frequency: After completion of task.

Who: OIPM OSO

Incentive: 2% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.2.8 The Contractor shall transfer loan documents to the Designated Document Custodian (DDC) concurrent with the event of Issuer T/E/S.

a) Transfer loans immediately upon T/E/S

5.2.9 The Contractor shall participate in Collateral Analysis in collaboration with the DDC in accordance with the MF MSS Portfolio Seizure Management Standard Operating Procedures (SOP). Upon completion of the collateral analysis, the Contractor shall create and submit the Due Diligence Portfolio Report.

Deliverables:

A019 10 Day Due Diligence Portfolio Report A035 30 Day Due Diligence Portfolio Report A036 60 Day Due Diligence Portfolio Report

a) Submit the 10-Day Due Diligence Portfolio Report (due on the next business day via email to the COR) AQL: Zero Deviation

b) Submit the 30-Day Due Diligence Portfolio Report (due on the next business day via email to the COR) AQL: Zero Deviation

c) Submit the 60-Day Due Diligence Portfolio Report (due on the next business day via email to the COR)

What: Deliverables

Frequency: After completion of task.

Who: OIPM

Incentive: 2% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.2.10 The Contractor shall validate the onboarded servicing records to the Extinguished Issuers servicing records and the monthly reported loan data to Ginnie Mae.

5.2.11 The Contractor shall prepare and submit MSS T/E/S Reports in accordance with the MF MSS Portfolio Seizure Management SOP.

Deliverables:

A017 10-day MSS T/E/S Report A037 30-day MSS T/E/S Report A038 60-day MSS T/E/S Report

a) Submit the 10-Day MSS T/E/S Report (due on the next business day via email to the COR) AQL: Zero Deviation

b) Submit the 30-Day MSS T/E/S Report (due on the next business day via email to the COR) AQL: Zero Deviation

c) Submit the 60-Day MSS T/E/S Report (due on the next business day via email to the COR)

What: Deliverables

Frequency: After completion of task.

Who: OIPM

Incentive: 2% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.2.12 The Contractor shall submit a Ginnie Mae I P&I Advance Request upon identifying the amount of pass-through funding required. Once the pass-through amount is determined, the MSS will request funding for any shortfalls from the MSS COR/OCFO. The Contractor shall submit the Ginnie Mae I P&I Advance Request on the 4th business day or before the 13th calendar day of each month.

Deliverables:

A021 Ginnie Mae I P&I Advance Request

a) Submit a Ginnie Mae I P&I Advance Request on the 4th business day or before the 13th calendar day of each month.

What: Deliverables

Frequency: After completion of task.

Who: OIPM OCFO

Incentive: 2% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.3 Servicing

5.3.1 The Contractor shall initiate meeting in person or conference call with the Designated Document Custodian (DDC). The initial meeting shall occur within six (6) months after the contract award date.

a) Conduct initial meeting within six (6) months after contract award date.

5.3.2 The Contractor shall input Portfolio Data and documentation into servicing system within five (5) business days after contract award date.

a) Input Portfolio Data and documentation into servicing system within five (5) business days after contract award date.

5.3.3 The Contractor shall perform portfolio analysis upon completing the onboarding of portfolio data and reviewing servicing documents. The Contractor shall identify construction draws due immediately.

a) Complete portfolio analysis, review servicing documents and identify construction draws due immediately within 3 business days.

5.3.4 The Contractor shall transfer money from the P&I and T&I escrow custodial bank accounts within five (5) business days of the T/E/S for small, medium and large issuers and within ten (10) business days of the T/E/S for mega issuers. The Contractor shall submit the P&I and T&I Bank Statements monthly to the COR via email.

Deliverables:

A039 P&I and T&I Bank Statements

a) Transfer money from the P&I and T&I escrow custodial bank accounts within five (5) business days of the T/E/S for small, medium, and large issuers AQL: Zero Deviation

b) Transfer money from the P& I and T&I escrow bank accounts within ten (10) business days of the T/E/S/ for mega issuers AQL: Zero Deviation

c) Submit the P&I and T&I Bank Statements monthly to the COR via email.

What: Deliverables

Frequency: After completion of task.

Who: OIPM OCFO

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.3.4.1 The Contractor shall remit P&I proceeds to Ginnie Mae based on the borrowers' payments received for loans that are not pooled within two (2) days of when the borrower payment was received by the Contractor.

Deliverables:

A022 P&I proceeds for Nonpooled

a) Remit P&I proceeds to Ginnie Mae within two (2) days of when the borrower payment was received by the Contractor.

What: Deliverables

How: Deliverables

Frequency: After completion of task.

Who: OIPM OCFO

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.3.4.2 The Contractor shall identify the amount of pass-through funding required. The contractor shall submit GNMA I P&I Advance Request Report for cash shortages in the Custodial Accounts by the 13th Calendar day, monthly. The Contractor shall confirm that pass-through funding was successful. The Contractor shall facilitate the transfer of funds to tax and insurance payees, if necessary.

Deliverables:

A021 Ginnie Mae I P&I Advance Request

a) Submit GNMA I P&I Advance Request Report by the 13th Calendar day, monthly

What: Deliverables

Frequency: After completion of task.

Who: OIPM OCFO

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.3.4.3 The Contractor shall remit the MBS loan-servicing fee directly into the P&I account. The Contractor shall calculate the gross servicing fee for the previous month and remit it to Ginnie Mae by the sixth (6) business day of each month.

Deliverables:

A023 MBS Loan Servicing Fee

a) Remit the MBS loan-servicing fee directly into the P&I account by the sixth (6) business day of each month.

What: Deliverables

Frequency: After completion of task.

Who: OIPM OCFO

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.3.4.4 The Contractor shall perform cash management activities including test of the expected P&I account, reconciliations of mortgage collateral to securities outstanding, P&I and escrow account reconciliations and calculating P&I account shortfalls.

Deliverables:

A024 Bank Statements and Escrow Reconciliations

a) The Contractor shall perform cash management activities including test of the expected P&I account, reconciliations of mortgage collateral to securities outstanding, P&I and escrow account reconciliations and calculating P&I account shortfalls on a daily basis.

What: Deliverables

Frequency: After completion of task.

Who: OIPM OCFO

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.3.5 The Contractor shall notify all involved parties of the servicer change within 30 days.

a) Notify all involved parties of the servicer change within 30 days.

5.3.6 The Contractor shall service daily pooled/non-pooled and insured/guaranteed and non-insured/guaranteed loans and shall pay the security holders of Ginnie Mae guaranteed MBS within 30 days in accordance with Ginnie Maes Guaranty Agreements, the requirements of the Ginnie Mae MBS Guide and relevant FHA and RD regulations, handbooks, and other guidelines.

a) Daily, service pooled/non-pooled and insured/guaranteed and non-insured/guaranteed, loans.

AQL: Zero Deviation

b) Pay the security holders of Ginnie Mae guaranteed MBS within 30 days in accordance with Ginnie Maes standard Guaranty Agreement

5.3.7 The Contractor shall submit via https://pay.gov/paygov/ the gross insurance claims proceeds received from FHA and RD to Ginnie Mae on or before the third business day following receipt. The Contractor shall not obtain reimbursement from the claim proceeds for expenses.

Deliverables:

A031 Gross Insurance Claims Proceeds (Claims & Sales Proceeds)

a) 3rd Business day

What: Deliverables

Frequency: After completion of task.

Who: OIPM OCFO

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

5.3.8 The Contractor shall submit sales proceeds resulting from the sale of real estate owned property (REO) via https://pay.gov/paygov/ directly to Ginnie Mae on or before the third business day following receipt of the proceeds.

Deliverables:

A032 Real Estate Owned Property (REO) Proceeds (Claims & Sales Proceeds)

a) 3rd Business day

What: Deliverables

Frequency: After completion of task.

Who: OIPM OCFO

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

5.3.9 Reports

5.3.9.1 The Contractor shall submit Operational Reports. The Operational Reports shall be due monthly if there is a portfolio being serviced.

Deliverables:

A045 Operational Reports

a) Submit Operational Reports on the last business day of each month

What: Deliverables

Who: OIPM OCFO

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

5.3.9.2 The Contractor shall submit Accounting Reports by the 4th business day of each month, if there is a portfolio being serviced

Deliverables:

A026 Accounting Reports

a) Submit Accounting Reports by the 4th business day of each month

What: Deliverables

Frequency: After completion of task.

Who: OIPM OCFO

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

5.3.9.3 The Contractor shall submit Cash Receipts by the due date designated below, if there is a portfolio being serviced.

Deliverables:

A027 Cash Receipts

a) Submit Cash Receipts report by the due date designated

What: Deliverables

Frequency: After completion of task.

Who: OIPM OCFO

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.4 Asset Management

5.4.1 The Contractor shall perform all asset management job functions after the default in accordance with the Asset Management Servicing SOP. The Contractor shall assign loans from a T/E/S Issuer to the Contractor using the Limited Power of Attorney on behalf of Ginnie Mae to foreclose or correct defects of mortgage instruments in the Contractors name.

a) Daily

What: Operations

How: Operational Field Review

Frequency: Annually

Who: OIPM FRC

Incentive: 2% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

5.4.2 Asset Management Reimbursable List

Deliverables:

A015 Asset Management Reimbursable List

a) Submit a MF Ginnie Mae Asset Management Reimbursable list within six (6) months after contract award.

What: Deliverables

Frequency: After completion of task.

Who: OIPM

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

5.4.3 Records Retention

a) The contractor shall create and maintain records and archives as related to the services performed under this contract and any prior contracts received.

AQL: Zero Deviation

b) The Contractor shall respond to research and retrieval requests from the COR within five (5) business days unless the request pertains to Ginnie Mae senior management or auditor inquiries in which case the turnaround time will be as directed by the COR.

5.5 Asset Sales / Portfolio Transfers / Rapid Relocation Support

5.5.1 The Contractor shall provide support services with asset sales, portfolio transfers and rapid relocation in accordance with the MF MSS Extinguishment SOP. The Contractor shall provide technical direction for rapid relocation of loans from the terminated Issuer to an Issuer other than the MSS in accordance with the MF MSS Extinguishment SOP.

5.5.2 The Contractor shall provide consulting services to Ginnie Mae to assist with the transfer or sale of the MSR, whole loans or other assets to any purchasers or other transferee(s) in accordance with the MF MSS Extinguishment SOP.

5.6 Research, Analysis, New Reporting and Related Support Services

5.6.1 The Contractor shall research, analyze, and recommend alternative approaches for specific mortgage servicing issues related to seized portfolio. This includes the creation of additional termination-related materials/documents and development of new monthly Investor reporting and accounting reports.

Deliverables:

A040 Technical Direction project cost of producing the ad-hoc report(s) A041 Ad-hoc report(s)

a) Submit the Technical Direction project cost of producing the ad-hoc report(s) within 5 business days upon request AQL: Within 7 business days upon request

What: Deliverables

How: Review Deliverable

Frequency: Randomly

Who: OIPM

Incentive: 2% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

5.7 Legal Services

5.7.1 The Contractor shall have in-house counsel possessing extensive legal experience in (1) mortgage servicing, (2) litigation involving Multifamily mortgage loans, and (3) supervising outside counsel retained for litigation or other complex matters.

Deliverables:

A046 Quarterly Pre-Litigation/Litigation Report

a) Quarterly Pre-Litigation/Litigation Report due by March 31, June 30, September 30, and December 31 annually

What: Deliverables

Frequency: After completion of task.

Who: OIPM OGC

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

5.8 Information Technology-Federal IT Security

5.8.1 Federal IT Security

5.8.1.1 The Contractor shall create and submit an IT Security Plan in accordance with requirements for SA&A per the applicable requirements from HUD, Office of Management and Budget (OMB), NIST, FISMA, FISCAM, and FFMIA. The IT Security Plan shall be due six (6) months from the contract award date and updated annually thereafter.

Deliverables:

A009 IT Security Plan A018 Security Assessment and Authorization (SA&A) Accreditation A059 Security Self-Assessment Report A060 Plans of Action and Milestones

a) The Contractor shall submit the IT Security Plan within 6 months after contract award and updated annually thereafter.

AQL: Zero Deviation

b) The Contractor shall submit Security Self-Assessment Report no later than August 31st of each calendar year.

AQL: Zero Deviation

c) The Contractor shall review, update and submit Plans of Action and Milestones to Ginnie Maes Chief Information Security Officer. The Plans of Action and Milestones shall be due quarterly.

What: Deliverables

Frequency: After completion of task.

Who: OIPM, OER

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.8.2 Continuity of Operations Plan-COOP

5.8.2.1 The Contractor shall create and submit a Continuity of Operations Plan (COOP) in accordance with Executive Order 12656 of February 1996, the Computer Security Act of 1987 and OMB Circular A-130 mandate that COOP exists for all U.S. Government operations. The COOP shall be due 120 days from the contract award date and updated annually thereafter.

Deliverables:

A007 Continuity of Operations Plan (COOP) A053 MEF/ESA Support System Documentation A054 COOP Event After Action Report

a) Submit Continuity of Operations relevant information system documentation (COOP Plan, Information Systems Contingency Plans (ISCP), SOPs, POC, etc.) within 120 days of contract start date and annually. Submit MEF/ESA Support System Documentation annually. Submit COOP Event After Action Report within 30 calendar days of an event.

AQL: Zero Deviation

b) Continuity of Operations relevant information system documentation (COOP Plan, Information Systems Contingency Plans (ISCP), SOPs, POC, etc.).

AQL: Zero Deviation

c) Annual MEF/ESA Support System Documentation.

AQL: Zero Deviation

d) COOP Event After Action Report.

What: Deliverables

Frequency: After completion of task.

Who: OIPM, OER

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.8.3 Disaster Recovery

5.8.3.1 The Contractor shall create and submit a Disaster Recovery Plan in accordance with Executive Order 12656 of February 1996, the Computer Security Act of 1987 and OMB Circular A-130 mandate that a DR Plan for all U.S. Government information resources be maintained. The Disaster Recovery Plan, Disaster Recovery Test Process, and Disaster Recovery Test Scenarios shall be due 30 days from the contract award date and updated semi-annually thereafter.

Deliverables:

A008 Disaster Recovery Plan, Disaster Recovery Test Process, Disaster Recovery Test Scenarios A055 Disaster Recovery Test Report

a) Submit the Disaster Recovery Plan, Disaster Recovery Test Process, Disaster Recovery Test Scenarios 30 days after contract award and updated semi-annually thereafter.

AQL: Zero Deviation

b) Environmental Validation Support received quarterly AQL: Zero Deviation

c) Disaster Recovery Report 10 days after semi-annual testing

What: Deliverables

How: Review Deliverables.

Frequency: After completion of task.

Who: OIPM, OER

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.8.4 Audit Readiness / Statement on Standards for Attestation Engagements 18

5.8.4.1 Statement on Standards for Attestation Engagements - (SOC 1 (Mandatory FFP LIN); SOC 2 (Optional FFP LIN)

5.8.4.1.1 The Contractor shall provide and be subject to a SSAE 18 issued under SSAE Type II Engagement, report on policies and procedures placed in operation and tests of operating effectiveness of controls or other applicable audit requirements. The attestation draft shall be due annually by August 15th and final due annually by August 30th.

Deliverables:

A042 SSAE 18 Audit Report (Draft) A043 SSAE 18 Audit Report (Final) A047 SSAE 18 Audit Remediation Progress Status Reports

a) SSAE 18 Audit Report (Draft) - MSS SOC 1 and DDC SOC 1: Draft due annually by August 15th AQL: Zero Deviation

b) SSAE 18 Audit Report (Draft) - MSS SOC 1 and DDC SOC 1: Final due annually by August 30th.

AQL: Zero Deviation

c) MSS SOC II: As specified in the individual delivery order when issued AQL: Zero Deviation

d) SSAE 18 Audit Remediation Progress Status Reports, Quarterly until remediation actions completed

What: Deliverables

Frequency: Annually

Who: OIPM, OER

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

5.8.4.1.2 The Contractor shall support and permit Ginnie Maes Risk and Controls Self-Assessment (RCSA) and audits, Vendor Risk Management (VRM) (third party) assessments conducted annually.

Deliverables:

A048 RCSA & VRM Corrective Action Plan

a) RCSA & VRM Corrective Action Plan within 30 calendar days of receiving audit results

What: Deliverables

Frequency: Annually

Who: OIPM, OER

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

5.9 Transition Out

5.9.1 The Contractor shall continue normal servicing activities during the Transition-Out period and can invoice for normal servicing activity under the approved LINS until the loans have successfully transferred from its servicing system to the successor servicing system or until the contract expires.

5.9.2 The Contractor shall develop and maintain a Transition-Out Plan for the transfer of all loans on the Contractors servicing platform, the underlying data, documentation, including but not limited to accounting information.

5.9.3 The Contractor shall send the Ginnie Mae COR a preliminary Transition-Out Plan six (6) months prior to the expiration of the base period and each option period exercise date.

Deliverables:

A050 Preliminary Transition-Out Plan A051 Final Transition-Out Plan

a) Preliminary Transition-Out Plan 6 months prior to expiration of base period and each option year.

AQL: Zero Deviation

b) Final Transition-Out Plan 60 days prior to the beginning of the Transition-Out Period.

What: Deliverables

Frequency: After completion of task.

Who: OIPM OCFO OSO OER OCG

Incentive: 5% deduction from the associated LIN for each business day not submitted in accordance with the established performance standard.

Standard(s): Inspection applies to all standards

5.9.4 The Contractor shall work with any third party the COR designates to assist with the transition planning and execution of the Transition-Out.

5.9.5 The Contractor shall provide the following duties during the Transition-Out period:

5.9.6 The Contractor shall provide support to the incoming Contractor(s) with respect to OCFO accounting reports, loan level accounting or SLDB, or other reporting requirements provided or developed for/to Ginnie Mae; which includes requirements, assumptions, lessons learned, and other technical assistance needed to successfully transition reporting responsibilities.

5.9.7 The Contractor shall provide Ginnie Mae electronically all the historical, loan level, transactional, scanned documents and additional electronic data or documentation for every loan that the Contractor serviced for Ginnie Mae. The electronic data shall be delivered to the Ginnie Mae COR within 30 days of the last loan or pending claim being transitioned to the successor Contractor(s).

Deliverables:

A052 Transition-Out Supporting Documentation

a) Transition all information, data and Government property to Ginnie Mae, assigned Ginnie Mae Contractor(s) or specified third party by the conclusion of the contract.

What: Deliverables

Frequency: After completion of task.

Who: OIPM OCFO OSO OER OCG

5.9.8 The Contractor shall transfer to Ginnie Mae and its successor Contractor(s) all pooled and out-of-pool loan servicing files, origination files, credit files and all applicable documents related to the seized portfolio when the period of performance of this contract expires.

5.10 Content Management Solution

5.10.1 The Contractor shall provide Content Management & Reporting Solution within one month of exercising this optional LIN.

Appendix 2 - Corrective Action Report (CAR)

CORRECTIVE ACTION REPORT (CAR)

(If more space is needed, use reverse and identify by number)

1. CONTRACTOR

2. CONTRACT NUMBER

3. TYPE OF SERVICES

4. FUNCTIONAL AREA

5. SUSPENSE DATE

6. CONTROL NUMBER

7. DEFICIENCY FORMCHECKBOX

MAJOR FORMCHECKBOX

MINOR

FINDING:

FINDING IMPACT:

Please respond with a written corrective action plan that details the corrective action of the cited deficiency, the cause of the deficiency, and actions taken to prevent recurrence by Suspense Date in Block 5. If date was not entered in Block 5, the contractor is not required to provide a response.

8. QUALITY ASSURANCE PERSONNEL (COR)

TYPED NAME AND GRADE

SIGNATURE AND DATE

9. ISSUING AUTHORITY

TYPED NAME AND GRADE

SIGNATURE AND DATE

10. COR RESPONSE TO CONTRACTOR CORRECTIVE ACTION AND ACTION TAKEN TO PREVENT RECURRENCE

11. COR DETERMINATION

FORMCHECKBOX

ACCEPTED FORMCHECKBOX

REJECTED

12. CLOSE DATE

Appendix 3 - Customer Complaint Record

SOURCE OF COMPLAINT

ORGANIZATION

BUILDING NUMBER

INDIVIDUAL

PHONE NUMBER

NATURE OF COMPLAINT

CONTRACT REFERENCE

VALIDATION

DATE/TIME CONTRACTOR INFORMED OF COMPLAINT

ACTION TAKEN BY CONTRACTOR

RECEIVED/VALIDATED BY

Appendix 4 - Performance Assessment Report (PAR)

PERFORMANCE ASSESSMENT REPORT (PAR)

(If more space is needed, use reverse and identify by number)

4. QUALITY ASSURANCE PERSONNEL (COR) SIGNATURE AND DATE

I. PERFORMANCE

7. FORMCHECKBOX

DEFICIENCY (CHECK ALL BOXES THAT APPLY)

FORMCHECKBOX

NEW

FORMCHECKBOX

REPEAT

FORMCHECKBOX

NO DEFICIENCY NOTED

8. SERVICES SUMMARY or PWS PARAGRAPH ITEM REVIEWED

II. CONTRACTOR VALIDATION

11. CONTRACTOR REPRESENTATIVE FORMCHECKBOX

CONCUR FORMCHECKBOX

NON-CONCUR

12. CORRECTIVE ACTION ESTIMATED COMPLETION DATE

13. CONTRACTOR REPRESENTATIVE CORRECTIVE ACTION AND PREVENTION OF RECURRENCE OR REASON FOR NON-CONCURRENCE OF COR CITED DEFICIENCY

III. ACTION CORRECTED

14. FORMCHECKBOX

CONCUR…