Attachment A Performance Work Statement - MF Loan Underwriting and Closing Support Services.pdf

ATTACHMENT A

Performance Work Statement (PWS)

Multifamily Loan Underwriting and Closing

Support Services Contract

10/05/2022

Version 1.0

Vision Statement

1 General Information

1.1 Introduction

1.2 Background

1.3 Constraints

1.3.1 Conflict of Interest

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

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 Materials

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 Loan Underwriting for Section 223(f)

5.2 Loan Underwriting for Section 223(a)(7)

5.3 Loan Underwriting for Section 221(d)(4)

5.4 Loan Closing for Section 223(f)

5.5 Loan Closing for Section 223(a)(7)

5.6 Loan Closing for Section 221(d)(4)

5.7 Regular Reports

5.8 Transition In

5.9 Transition Out

6 Deliverables

6.1 Acceptance Criteria

7 Performance Requirements Summary

8 Related Documents

Performance Work Statement (PWS)

Multifamily Loan Underwriting and Closing Support Services

Contract

Vision Statement

FHA Multifamily’s mission is to provide a reliable, counter-cyclical source of capital, but recent mortgage insurance application volume has significantly outpaced FHA Multifamily’s ability to process loan applications internally. The loan underwriting and closing support services to be provided via this contract are critical to FHA Multifamily’s ability to deliver on its mission and are intended to support the program office on an as-needed basis, to reduce or avoid backlogs and delays, and to help the office meet established timeframes and market demands.

1 General Information

1.1 Introduction

The U.S. Department of Housing and Urban Development (HUD) - Office of Multifamily Housing Programs is seeking Contractor support services for project management, loan application underwriting, and loan closing administration for loan applications under Sections 223(a)(7) refinancing of existing multifamily rental housing, 223(f) purchase or refinancing of existing multifamily rental housing, and 221(d)(4) new construction or substantial rehabilitation of rental housing.

1.2 Background

HUD’s Office of Multifamily Production provides FHA mortgage insurance on loans for refinancing of existing multifamily rental housing in the FHA-insured portfolio (Section 223(a)(7)), purchase or refinancing of existing multifamily rental housing (Section 223(f)), and new construction or substantial rehabilitation of rental housing (Section 221(d)(4)). Applications for FHA multifamily mortgage insurance are submitted by approved Multifamily Accelerated Processing (MAP) Lenders and processed in five HUD Multifamily Regions. FHA Multifamily staff underwrite the mortgage insurance and close the loans (endorse the mortgage insurance).

FHA Multifamily has experienced a significant increase in mortgage insurance application volume as a result of record-low interest rates and a freeze on other capital sources during the COVID-19 pandemic. This has resulted in a large backlog of applications that the program office cannot process internally, which has led to delays for FHAs customers, its lenders and borrowers. To help the program office meet current and anticipated near-term market demand for its successful programs with desirable loan terms, FHA Multifamily seeks Contractor support to assist with loan underwriting and closing.

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:

The Contractor shall adhere to the rules, regulations, laws, standards, and conventions identified by HUD as outlined in Section 207 of the National Housing Act.

The Contractor is required by law to abide by all applicable regulations, publications, manuals, guidebooks, handbooks, and policies, including administrative procedures to adequately perform the underwriting and closing support services for HUD’s programs under Sections 223(a)(7), 223(f), and 221(d)(4) for FHA multifamily mortgage insurance.

Loans will be underwritten and closed in accordance with the Multifamily Accelerated Processing (MAP) Guide and all applicable Housing Notices/Mortgagee Letters, administrative memoranda, and other guidance.

1.3.1 Conflict of Interest

Neither the Contractor, nor any of its employees, shall have any direct or indirect financial interest in any multifamily loan application submitted to the Contractor, its ownership or management agent entity, or to the principles of either entity.

"The Contractor cannot be an employee of the borrower, owner, the management agent, or a principal of any of those entities. The Contractor cannot have a fiduciary duty towards--or personal or family relationship with-- any of said entities or employee of said entity such that the relationship would raise questions as to bias or the existence of a Conflict-of-Interest.

The Contractor cannot process or perform underwriting and/or closing services required under this contract for any multifamily loan application that has been previously processed by the Contractor (organizationally), or by one of its employees or subcontractor (individually) for the borrower, owner, or property in the previous 12 months from the contract award date. The Contractor shall immediately return the loan application assignment to the Regional Coordinator and the HUD POC via email and copy the LoanSupportServices23-27@hud.gov mailbox with an explanation of the Conflict-of-Interest.

1.4 Description of Services

The objective is for the Contractor to provide loan underwriting and closing support services to assist the program office in reducing/eliminating its current application backlog and better manage its application pipeline moving forward.

Loans shall be underwritten and closed in accordance with the Multifamily Accelerated Processing (MAP) Guide and all applicable Housing Notices/Mortgagee Letters, administrative memoranda, and other guidance.

The MAP Guide can be accessed at the following webpage:

https://www.hud.gov/program_offices/administration/hudclips/guidebooks/hsg-GB4430.

https://www.hud.gov/program_offices/administration/hudclips.

Mortgagee Letters and Housing Notices can be accessed at the following webpage: https://www.hud.gov/program_offices/administration/hudclips.

Additional information and resources can be found on the program offices MAP webpage (https://www.hud.gov/program_offices/housing/mfh/map/maphome),Multifamily Housing homepage (https://www.hud.gov/program_offices/housing/mfh) and Title 24 of the Code of Federal Regulations (https://www.ecfr.gov/current/title-24).

The Contractor shall access and use two HUD systems to perform portions of the work: the Capital Needs Assessment (CNA) e-Tool, and FHA Catalyst (web-based lender application portal).

The program office will have the ability to request loan underwriting services and/or loan closing services for each loan assigned to the Contractor.

The Subordinate Contracting Officers Representative (SCOR) or the Contracting Officers Representative (COR) will assign weekly loan assignments, if any, to the Contractor for loan underwriting and/or loan closing support services. There shall not be a limit on the number of weekly assignments that can be made to the Contractor; however, there is a maximum quantity that can be assigned to the contractor for the base and the option years. Each Multifamily Region shall have a Regional Coordinator who is responsible for submitting requests for loan assignments to the SCOR. Each loan assigned for services will have a HUD Point-of-Contact (HUD POC) who will coordinate various HUD tasks for each loan. The Contractor’s underwriter and/or closer shall communicate directly with HUD’s POC and the Lender regarding the assigned loan application.

The HUD POC assigned to each loan and their Branch Chiefs review contractor deliverables for loans in their MF Region, determine field acceptability of deliverables, complete a deliverable review summary form, and email the form to the SCOR for review, as recommendation that deliverables are complete and acceptable, for the SCOR to confirm acceptability of contractor deliverables and approve payment.

Applications for FHA multifamily mortgage insurance are submitted by approved MAP Lenders to the HUD Multifamily Region with geographical jurisdiction over the project. HUD Multifamily has a five-Region field structure: Midwest, Northeast, Southeast, Southwest, and West. Each Region has one Regional Center and one or two Satellite Offices:

1. Southwest Region: Fort Worth (Regional Center) and Kansas City (Satellite Office)

2. Midwest Region: Chicago (Regional Center), Detroit and Minneapolis (Satellite Offices)

3. Southeast Region: Atlanta (Regional Center) and Jacksonville (Satellite Office)

4. Northeast Region: New York (Regional Center), Boston and Baltimore (Satellite Offices)

5. West Region: San Francisco (Regional Center) and Denver (Satellite Office)

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 contract period of performance is one (1), one-year base period and four (4), one-year option periods.

1.7 Place of Performance

The services to be performed under this contract shall be performed at the Contractor’s facility.

1.8 Hours of Operation

The Contractor is responsible for providing services between the hours of 8:30 a.m. to 5:00 p.m., Eastern Standard Time (EST) 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

The Contractor’s underwriters/closers are required to have one year of specialized experience in FHA multifamily mortgage insurance underwriting, processing, and loan closing.

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 conference will be conducted via Microsoft Teams. 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 or MS TEAMS.

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

Refer to Section 5.8.

1.14 Transition Out

Refer to section 5.9.

2 Definitions and Acronyms

2.1 Definitions

Access: the ability to obtain, view, read, modify, delete, and/or otherwise make use of information resources.

Architect: a person who designs buildings and, in many cases, also supervises their construction.

Borrower: a person or organization that takes out a loan from a bank under an agreement to pay it back later, typically with interest.

Calendar Day: Any day of the calendar year.

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 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.

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.

Contractor Employee: an employee of the prime Contractor or of any subcontractor, affiliate, partner, joint venture, or team members with which the Contractor is associated. It also includes consultants engaged by any of those entities.

Capital Needs Assessment (CNA): A CNA is a due diligence report commonly used in the multifamily industry to examine current physical conditions at properties, specify repairs/replacements needed immediately and to budget for long-term capital repair and replacement needs during the life of an asset.

CNA e-Tool: an automated process for preparation, review, submission, approval and periodic updating of capital needs assessments.

FHA Catalyst: web-based lender application portal.

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 or electronically delivered but may include non-manufactured things such as meeting minutes or reports.

Government Furnished Property (GFP): Government-furnished property means property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government-furnished property 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.

Key Personnel: "Personnel means employees of the Contractor, or any subcontractor(s), affiliates, joint venture partners, or team members and consultants engaged by any of those entities.

Management Agent: A "managing agent is a person who, for compensation or in expectation of compensation, exercises control over the assets of a common interest development.

Multifamily Asset and Counterparty Oversight Division (MACOD): This Division is in OMHP. They are responsible for approving Lenders who wish to become a MAP Lender and assuring that approved MAP Lenders underwrite and close the insured HUD applications in compliance with the MAP Guide and other HUD published guidelines, standards, and requirements. They review the quality of closed loans, poor performing loans, or loans that are currently in default and monitor MAP Lenders on an ongoing basis. Their monitoring requirements and quality control guidelines are outlined in our MAP Guide.

Loan Documents: Any required papers such as but not limited to: HUD forms, templates, appendix, letters, applications, punch lists, checklists, supporting documentation and third-party reports required to complete the underwriting process for the FHA loan for approval or rejection.

MAP Guide: Multifamily Accelerated Processing (MAP) is a guidebook designed to establish national standards for approved Lenders to prepare, process and submit loan applications for Federal Housing Administration (FHA) multifamily mortgage insurance.

Mission-Critical System: means an information technology or telecommunications system used or operated by HUD or by a HUD Contractor, or organization on behalf of HUD, that processes any information, the loss, misuse, disclosure, or unauthorized access to, or modification of which would have a debilitating impact on the mission of the agency.

Owner: one who has the legal or rightful title to something: one to whom property belongs business/property owners.

Pay.gov: An online payment system for Lenders to pay all Multifamily mortgage insurance program fees.

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. The performance standards for these requirement 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.

Personal Identity Verification (PIV) Cards: Allows contractor personnel access to Multifamily FHA internal software systems. The Federal Government-issued identification credential (i.e., identification badge).

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

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.

Regional Loan Committee (RLC): a committee established to review multifamily transactions insured under various sections of the National Housing Act that meet certain loan amount threshold requirements.

Sensitive Information: any information of which the loss, misuse, or unauthorized access to, or modification of, could adversely affect the national interest, the conduct of federal programs, or the privacy to which individuals are entitled under section 552a of title 5, United States Code (the Privacy Act), but which has not been specifically authorized under criteria established by an Executive Order or an Act of Congress to be kept secret in the interest of national defense or foreign policy.

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.

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): An employee of the U.S.

Government that perform contract administration activities regarding technical issues who assist the COR. This individual does NOT have authority to change the terms and conditions of the contract. The SCOR will receive a delegation memorandum from the Contracting Officer.

Workday: Defined as one (1) calendar day the Contractor provides services in accordance with the contract. This does not include public holidays and weekends.

Work Week: Defined as 40 hours per week, Monday through Friday, unless specified otherwise.

2.2 Acronyms

AQL- Acceptable Quality Level

CCB - Change Control Board

CFO or OCFO - Chief Financial Officer or Office of the Chief Financial Officer of HUD

CFR - Code of Federal Regulations

CIO or OCIO - Chief Information Officer or Office of the Chief Information Officer of HUD

CO - Contracting Officer

COB - Close of Business

COR - Contracting Officer Representative

CPO - Office of the Chief Procurement Officer of HUD

CR - Change Request

CNA - Capital Needs Assessment

CNA e-Tool - Capital Needs Assessment Electronic System

DACA - Days After Contract Award

EST - Eastern Standard Time (U.S.)

FHA - Federal Housing Administration

HUD - U.S. Department of Housing and Urban Development

HUDAR - HUD Acquisition Regulation

HUD Web HUD’s Intranet Web Site and related WEB pages

IG or OIG - Inspector General (Office of)

IT - Information Technology

MACOD - Multifamily Asset and Counterparty Oversight Division

OCPO - Office of the Chief Procurement Officer

OMB - Office of Management and Budget - Office of Management and Budget

PL - Public Law

PM - Project Manager

PPM - Project Planning and Management

POC - Point of Contact

QA - Quality Assurance

QASP - Quality Assurance Surveillance Plan

QCP - Quality Control Plan

SF - Standard Form

TBD - To be determined

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 furnish, at no cost to the Contractor, the GFP shown below.

3.1 Government Services

The Government will provide a virtual two (2)-day FHA Multifamily loan underwriting and loan closing training via Microsoft Teams for the Contractor and Key Personnel employed by the Contractor. The Government will also provide access to all required systems to support loan underwriting services.

3.2 Facilities

The Government will not provide facilities to the Contractor.

3.3 Equipment

The Government will not provide equipment to the Contractor.

3.4 Materials

The Government will provide the electronic documents for the loan applications being processed under Sections 223(a)(7), 223(f), and 221(d)(4); the MAP Guide and all other program guidance, training materials and operating procedures.

All materials will remain the property of the Government and will be returned to the COR upon request or at the end of the contract period.

3.5 Quality Assurance (QA)

The Government shall evaluate the Contractor's performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the Contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance, and the minimum acceptable quality level.

4 Contractor-Furnished Items and Services

The Contractor shall furnish, all facilities, equipment, and supplies required to perform the work under this contract that are not listed under Government-Furnished Property and Services.

4.1 Facilities

The contractor shall furnish all facilities required to perform the work under this contract.

4.2 Equipment

The contractor shall furnish all equipment required to perform the work under this contract.

4.3 Materials

The contractor shall furnish all supplies required to perform the work under this contract.

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 8:30am to 5:00pm 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. Contractor’s/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review. Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their workspace area with their name and company affiliation, or at a minimum, "Contractor" after name.

4.7 Quality Control

The Contractor shall establish and maintain a complete quality control program that shall ensure services are performed in accordance with this contract. The Contractor shall develop and implement procedures to identify, prevent, and ensure non reoccurrence of defective services. The Contractor's quality control program is the means by which he assures himself that his work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan to the Government as directed.

4.7.1 Quality Control Plan

The Contractor shall develop, maintain, enforce, and document a Quality Control Plan (QCP). The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractor's 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.

The Contractor's QCP shall be delivered to the COR within 30 days after contract award (or with the Contractor's proposal if it is an evaluation factor). The QCP shall be submitted to the COR within 30 business days when changes are made thereafter. After acceptance of the QCP, the Contractor shall receive the Contracting Officer's acceptance in writing of any proposed change to its quality control system.

5 Specific Tasks

5.1 Loan Underwriting for Section 223(f)

The Contractor shall follow all applicable guidance in the MAP Guide for processing and underwriting a Section 223(f) Firm Commitment Application for mortgage insurance. The Contractor’s review includes the review of the Lenders Underwriting Narrative, all HUD Underwriting Forms, the Capital Needs Assessment (CNA) e-Tool, Critical and Non-Critical Repairs, Reserve for Replacement Schedule, Appraisal/Valuation Review, Mortgage Credit Review of Principals, any additional Third-Party Reports, any Waiver Requests, and other application materials. This review shall be completed by the Contractor’s underwriter and any professional technical consultants (i.e., architect, engineer, appraiser) engaged by the Contractor. The contractor is responsible to ensure that technical consultants engaged by the contractor have qualifications to do the work. HUD will not review or monitor qualifications of professional technical consultants engaged by the contractor.

The Contractor’s underwriter shall follow the attached operating procedures when processing a loan application for FHA multifamily mortgage insurance. Below are the deadlines for the deliverables to HUD:

a) Upon conclusion of full underwriting review of the application and review of the CNA e-Tool, submit all required deliverables to HUD POC (cc: LoanSupportServices23- 27@hud.gov) for review within thirty-five (35) calendar days after application assignment

b) Present loan underwriting summary and recommendation to the RLC, if required, on date to be scheduled by the HUD office and respond to any written requests from the RLC within two (2) business days after request

c) Make any corrections or additions to final deliverables requested by HUD office and resubmit to HUD office within three (3) business days after request

At loan assignment, the SCOR will determine and notify the contractor whether Regional Loan Committee (RLC) is required. HUD’s current RLC thresholds can be found here:

https://mgmt.hud.gov/sites/dfiles/Housing/documents/FHA_Multifamily%20NLC_Thresholds-effective_2022-08-29.pdf.

The Contractor’s final deliverables for loan underwriting services shall be submitted to the HUD office within thirty-five (35) calendar days after application assignment. Exceptions are only permitted for legitimate reasons (e.g., significant application deficiencies, lender delays), and any issues causing material delays must be discussed immediately with and agreed upon by the HUD office.

The Contractor’s final deliverables for loan underwriting services shall be submitted to the HUD office within thirty-five (35) calendar days after application assignment. Exceptions are only permitted for legitimate reasons (e.g., significant application deficiencies, lender delays), and any issues causing material delays must be discussed immediately with and agreed upon by the HUD office.

If any corrections or additions are needed to any of the deliverables after initial delivery, the Contractor will be required to make those corrections or additions within 3 business days, as requested by the HUD office.

Performance Standards

a) Standard: Upon conclusion of full underwriting review of the application and review of the CNA e-Tool, submit all required deliverables to HUD POC (cc: LoanSupportServices23- 27@hud.gov) for review within thirty-five (35) calendar days after application assignment AQL: No deviation; exceptions are only permitted for legitimate reasons (e.g., significant application deficiencies, lender delays), and any issues causing material delays must be discussed immediately with and agreed upon by the HUD office

b) Standard: Present loan underwriting summary and recommendation to the RLC, if required, on date to be scheduled by the HUD office and respond to any written requests from the RLC within two (2) business days after request AQL: No deviation

c) Standard: Make any corrections or additions to final deliverables requested by HUD office and resubmit to HUD office within three (3) business days after request AQL: No deviation

5.2 Loan Underwriting for Section 223(a)(7)

The Contractor shall follow all applicable guidance in the MAP Guide for processing and underwriting a Section 223(a)(7) Firm Commitment Application for mortgage insurance. The Contractor’s review includes the review of the Lenders Underwriting Narrative, all HUD Underwriting Forms, the Capital Needs Assessment (CNA) e-Tool, Critical and Non-Critical Repairs, Reserve for Replacement Schedule, Mortgage Credit Review of any new Principals, any additional Third-Party Reports, any Waiver Requests, and other application materials. This review shall be completed by the Contractor’s underwriter and any professional technical consultants (i.e., architect, engineer, appraiser) engaged by the Contractor. The contractor is responsible to ensure that technical consultants engaged by the contractor have qualifications to do the work. HUD will not review or monitor qualifications of professional technical consultants engaged by the contractor.

The Contractor’s underwriter shall follow the attached operating procedures when processing a loan application for FHA multifamily mortgage insurance. Below are the deadlines for the deliverables to HUD:

a) Upon conclusion of full underwriting review of the application and review of the CNA e-Tool, submit all required deliverables to HUD POC (cc: LoanSupportServices23- 27@hud.gov) for review within thirty-five (35) calendar days after application assignment

b) Present loan underwriting summary and recommendation to the RLC, if required, on date to be scheduled by the HUD office and respond to any written requests from the RLC within two (2) business days after request

c) Make any corrections or additions to final deliverables requested by HUD office and resubmit to HUD office within three (3) business days after request

At loan assignment, the SCOR will determine and notify the contractor whether Regional Loan Committee (RLC) is required. HUD’s current RLC thresholds can be found here:

https://mgmt.hud.gov/sites/dfiles/Housing/documents/FHA_Multifamily%20NLC_Thresholds-effective_2022-08-29.pdf.

The Contractor’s final deliverables for loan underwriting services shall be submitted to the HUD office within thirty-five (35) calendar days after application assignment. Exceptions are only permitted for legitimate reasons (e.g., significant application deficiencies, lender delays), and any issues causing material delays must be discussed immediately with and agreed upon by the HUD office.

Performance Standards

a) Standard: Upon conclusion of full underwriting review of the application and review of the CNA e-Tool, submit all required deliverables to HUD POC (cc: LoanSupportServices23- 27@hud.gov) for review within twenty (20) calendar days after application assignment AQL: No deviation; exceptions are only permitted for legitimate reasons (e.g., significant CNA e-Tool deficiencies, lender delays), and any issues causing material delays must be discussed immediately with and agreed upon by the HUD office

b) Standard: Present loan underwriting summary and recommendation to the RLC, if required, on date to be scheduled by the HUD office and respond to any written requests from the RLC within two (2) business days after request AQL: No deviation

c) Standard: Make any corrections or additions to final deliverables requested by HUD office and resubmit to HUD office within three (3) business days after request AQL: No deviation

5.3 Loan Underwriting for Section 221(d)(4)

The Contractor shall follow all applicable guidance in the MAP Guide for processing and underwriting a Section 221(d)(4) Firm Commitment Application for mortgage insurance.

HUD will assign a HUD Construction Analyst to complete the review of all application exhibits included in Section 6 (Construction and Architectural Documents) of the application, including the Plans & Specifications, Accessibility Compliance, and Construction Costs/HUD-2328, as well as the Architectural & Cost Analysis report, Capital Needs Assessment (CNA) e-Tool, Reserve for Replacement Schedule, and any Engineer Reports or Specialty Reports related to physical condition, which are all found in Section 2 (Third Party Reports) of the application; the Contractor will not be responsible for the reviews of these components of the application, and the HUD Construction Analyst will provide the outcome of these reviews to the Contractor’s underwriter.

The Contractor’s review includes the review of the Lenders Underwriting Narrative, all HUD Underwriting Forms (except Form-2328), Appraisal/Valuation Review, Mortgage Credit

Review of Principals, any additional Third-Party Reports related to market, any Waiver Requests, and other application materials; these reviews shall be completed by the Contractor’s underwriter and any professional technical consultants (i.e., appraiser) engaged by the Contractor. The contractor is responsible to ensure that technical consultants engaged by the contractor have qualifications to do the work. HUD will not review or monitor qualifications of professional technical consultants engaged by the contractor.

The Contractor’s underwriter shall follow the attached operating procedures when processing a loan application for FHA multifamily mortgage insurance. Below are the deadlines for the deliverables to HUD:

a) Upon conclusion of full underwriting review of the application and review of the CNA e-Tool, submit all required deliverables to HUD POC (cc: LoanSupportServices23- 27@hud.gov) for review within thirty-five (35) calendar days after application assignment

b) Present loan underwriting summary and recommendation to the RLC, if required, on date to be scheduled by the HUD office and respond to any written requests from the RLC within two (2) business days after request

c) Make any corrections or additions to final deliverables requested by HUD office and resubmit to HUD office within three (3) business days after request

At loan assignment, the SCOR will determine and notify the contractor that Regional Loan Committee (RLC) is required.

The Contractor’s final deliverables for loan underwriting services must be submitted to the HUD office within forty-five (45) calendar days after application assignment. Exceptions are only permitted for legitimate reasons (e.g., significant application deficiencies, lender delays), and any issues causing material delays must be discussed immediately with and agreed upon by the HUD office.

If any corrections or additions are needed to any of the deliverables after initial delivery, the Contractor will be required to make those corrections or additions within 3 business days, as requested by the HUD office.

Performance Standards

a) Standard: Upon conclusion of full underwriting review of the application, submit all required deliverables to HUD POC (cc: LoanSupportServices23-27@hud.gov) for review within forty-five (45) calendar days after application assignment AQL: No deviation; exceptions are only permitted for legitimate reasons (e.g., significant application deficiencies, lender delays), and any issues causing material delays must be discussed immediately with and agreed upon by the HUD office

b) Standard: Present loan underwriting summary and recommendation to the RLC, if required, on date to be scheduled by the HUD office and respond to any written requests from the RLC within two (2) business days after request AQL: No deviation

c) Standard: Make any corrections or additions to final deliverables requested by HUD office and resubmit to HUD office within three (3) business days after request AQL: No deviation

5.4 Loan Closing for Section 223(f)

The Contractor shall follow all applicable guidance in Chapter 19 of the MAP Guide for closing a loan under Section 223(f). This closing is also referred to as the Initial/Final

Endorsement of the mortgage insurance. The closing checklists for Section 223(f) can be found here: https://www.hud.gov/OGC_Multifamily_Closing_Documents_Checklist Shortly after Firm Commitment issuance, the HUD POC will identify the HUD Closing Attorney from HUD’s Office of General Counsel (OGC) that the Contractor will work with for the document review and loan closing. The Contractor’s responsibilities include reviewing all draft closing documents and providing comments to the HUD Closing Attorney, Lender, and Lenders Counsel; reviewing any firm commitment amendment requests and preparing/submitting amendments to the HUD office for review/signature; providing clearance to close and drafting the required administrative memorandum; ensuring that all firm commitment special conditions are satisfied and any outstanding issues are resolved prior to closing; assisting the HUD Closing Attorney and HUD POC/Closing Coordinator as needed, including on the day of closing; and notifying the HUD POC/Closing Coordinator when the loan has successfully closed. These tasks shall be completed by the Contractor’s closer.

The Contractor’s closer shall follow the attached operating procedures when closing an FHA-insured mortgage. Below are the deadlines for the deliverables to HUD:

a) Review any amendment requests and prepare/submit amendments to HUD POC for review/signature within five (5) business days after receipt

b) Review all draft closing documents for completeness and accuracy, and provide comments to Lender, Lender’s Counsel, and HUD Closing Attorney within ten (10) business days after receipt of draft closing documents

c) Draft and submit clearance to close administrative memorandum to HUD office within two (2) business days after all major issues have been addressed

d) Email the HUD POC/Closing Coordinator (cc: LoanSupportServices23-27@hud.gov) providing evidence/notification that the loan has successfully closed no more than twenty-four (24) hours after the loan has closed

The target is to close the loan within one hundred-twenty (120) calendar days after firm commitment issuance.

Performance Standards

a) Standard: Review any amendment requests and prepare/submit amendments to HUD POC for review/signature within five (5) business days after receipt AQL: Up to ten (10) total business days after receipt for amendment requests requiring substantial reprocessing (will be determined via conversation with HUD office)

b) Standard: Review all draft closing documents for completeness and accuracy, and provide comments to Lender, Lender’s Counsel, and HUD Closing Attorney within ten (10) business days after receipt of draft closing documents AQL: No deviation

c) Standard: Draft and submit clearance to close administrative memorandum to HUD office within two (2) business days after all major issues have been addressed AQL: No deviation

d) Standard: Email the HUD POC/Closing Coordinator (cc: LoanSupportServices23- 27@hud.gov) providing evidence/notification that the loan has successfully closed no more than twenty-four (24) hours after the loan has closed AQL: No deviation

5.5 Loan Closing for Section 223(a)(7)

The Contractor shall follow all applicable guidance in Chapter 19 of the MAP Guide for closing a loan under Section 223(a)(7). This closing is also referred to as the Initial/Final Endorsement of the mortgage insurance. The closing checklist for Section 223(a)(7) can be found here: https://www.hud.gov/OGC_Multifamily_Closing_Documents_Checklist. Shortly after Firm Commitment issuance, the HUD POC will identify the HUD Closing Attorney from HUD’s Office of General Counsel (OGC) that the Contractor will work with for the document review and loan closing. The Contractor’s responsibilities include reviewing all draft closing documents and providing comments to the HUD Closing Attorney, Lender, and Lenders Counsel; reviewing any firm commitment amendment requests and preparing/submitting amendments to the HUD office for review/signature; providing clearance to close and drafting the required administrative memorandum; ensuring that all firm commitment special conditions are satisfied and any outstanding issues are resolved prior to closing; assisting the HUD Closing Attorney and HUD POC/Closing Coordinator as needed, including on the day of closing; and notifying the HUD POC/Closing Coordinator when the loan has successfully closed. These tasks shall be completed by the Contractor’s closer.

The Contractor’s closer shall follow the attached operating procedures when closing an FHA-insured mortgage. Below are the deadlines for the deliverables to HUD:

a) Review any amendment requests and prepare/submit amendments to HUD POC for review/signature within five (5) business days after receipt

b) Review all draft closing documents for completeness and accuracy, and provide comments to Lender, Lender’s Counsel, and HUD Closing Attorney within ten (10) business days after receipt of draft closing documents

c) Draft and submit clearance to close administrative memorandum to HUD office within two (2) business days after all major issues have been addressed

d) Email the HUD POC/Closing Coordinator (cc: LoanSupportServices23-27@hud.gov) providing evidence/notification that the loan has successfully closed no more than twenty-four (24) hours after the loan has closed

The target is to close the loan within one hundred-twenty (120) calendar days after firm commitment issuance

Performance Standards

a) Standard: Review any amendment requests and prepare/submit amendments to HUD POC for review/signature within five (5) business days after receipt AQL: Up to ten (10) total business days after receipt for amendment requests requiring substantial reprocessing (will be determined via conversation with HUD office)

b) Standard: Review all draft closing documents for completeness and accuracy, and provide comments to Lender, Lender’s Counsel, and HUD Closing Attorney within ten (10) business days after receipt of draft closing documents AQL: No deviation

c) Standard: Draft and submit clearance to close administrative memorandum to the HUD office within two (2) business days after all major issues have been addressed AQL: No deviation

d) Standard: Email the HUD POC/Closing Coordinator (cc: LoanSupportServices23- 27@hud.gov) providing evidence/notification that the loan has successfully closed no more than twenty-four (24) hours after the loan has closed AQL: No deviation

5.6 Loan Closing for Section 221(d)(4)

The Contractor shall follow all applicable guidance in Chapter 19 of the MAP Guide for closing a loan under Section 221(d)(4). This closing is also referred to as the Initial Endorsement of the mortgage insurance. The Initial Endorsement checklist for Section 221(d)(4) can be found here:

https://www.hud.gov/OGC_Multifamily_Closing_Documents_Checklist. Shortly after Firm Commitment issuance, the HUD POC will identify the HUD Closing Attorney from HUD’s Office of General Counsel (OGC) that the Contractor will work with for the document review and loan closing. The Contractor’s responsibilities include reviewing all draft closing documents including the Initial Draw (Request for Advance of Mortgage Proceeds), which the Contractor’s reviewer will sign, recommending approval by HUD) and providing comments to the HUD Closing Attorney, Lender, and Lenders Counsel; reviewing any firm commitment amendment requests and preparing/submitting amendments to the HUD office for review/signature; providing clearance to close and drafting the required administrative memorandum; ensuring that all firm commitment special conditions are satisfied and any outstanding issues are resolved prior to closing; assisting the HUD…