Attachment A - Statement of Work.docx

Statement of Work Federal Housing Finance Agency MF Market Data

Purchase Order # FHF-XXXX

Attachment A:

Statement of Work (SOW) Multifamily (MF) Mortgage Originations Data

1.0. BACKGROUND:

The Federal Housing Finance Agency (FHFA) was created by the Housing and Economic Recovery Act of 2008 (HERA) to regulate and supervise Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks (jointly, the “regulated entities”). HERA combined three organizations, the Office of Federal Housing Enterprise Oversight, the Federal Housing Finance Board, and a group from the Department of Housing and Urban Development, which collectively had previously regulated these entities.

The Office of Multifamily Analytics and Policy (OMAP) of the Division of Housing, Mission and Goals (DHMG) has a requirement for a commercially available multifamily (MF) data product. At a minimum, multifamily (MF, 5+) mortgage originations data are required. Details of this requirement are specified in Section 4.

2.0. SCOPE:

The data required must include specific attributes. A list of required and preferred data attributes is provided in Section 4. FHFA and the Contractor can bilaterally negotiate to include other related and ancillary features, services, etc. of the provided data as needs arise for other related data attributes.

3.0. OBJECTIVE:

FHFA/OMAP plans on utilizing the MF mortgage originations data to analyze, monitor and model and forecast MF originations volume at various levels of geography, property type, property size (units), lender type, and term within the MF space. The MF mortgage originations data will support multiple internal and external reports and publication of research studies.

4.0. DATA MINIMUM REQUIREMENTS AND PREFERRED FEATURES:

The Contractor shall provide a commercially available (i.e., previously developed and not custom built) MF data product meeting the following minimum requirements, and potentially including the following preferred features:

4.1 Source and Coverage of Historical Data

The MF originations data must be actual historical data. Estimates of any kind are unacceptable. These data must come from lien recordation or other state, local or federal government sources and must cover roughly 90-100 percent of all MF originations. Home Mortgage Disclosure Act (HMDA) data are unacceptable as the coverage is inadequate due to requirements that lenders originating fewer than 500 closed-end or open-end mortgages need not report HMDA.

4.2 Frequency, Length and Updates of Historical Data

The MF mortgage originations historical data must be available on at least a quarterly basis. Monthly data are preferred. Historical data must cover at least one full economic cycle and preferably start in 2000 or earlier. Updated data must be provided on at least a quarterly basis. Monthly updates are preferred. The full dataset must be refreshed each quarter. Pieces requiring concatenation are not acceptable.

4.3 Geographic Coverage

Geographic coverage shall include rural as well as urban, exurban and suburban areas. Data must be available at the Census tract level, at a minimum; providing only county-level, CBSA/MSA-level, or state-level is unacceptable.

As many of the 74,000+ Census tracts identified by the U.S. Bureau of the Census’ Units in Structure table as possible shall be covered (Extract, Appendix A).

Census tracts must be consistent with the 11-digit codes in Census data (e.g., 01001020100 is the Census tract for state FIPS code “01” concatenated with county FIPS code “001” concatenated with Census tract code “020100”.

Coverage must mirror Census representation of more and less densely populated areas within states (Appendix B). Additionally, data shall be available for as many of the 19,000+ rural Census tracts covered by FHFA’s Duty to Serve Program. Those can be found here:

https://www.fhfa.gov/DataTools/Downloads/Pages/Duty-to-Serve-Data.aspx

4.4 Property Size Coverage

Data must cover all property sizes from very small to very large and mirror the size distribution of the Residential Housing Finance Survey of 5+ units in Appendix C. MF mortgage originations data must be stratified by at least the following property size categories: 5-24, 25-49, 50-99, 100-149 and 150+. Providing data only on 50+ unit professionally managed properties is unacceptable.

4.5 Property Type / Land Use Code Coverage

Data must cover as many of the following property types as possible: conventional MF housing (apartments), student housing, military housing, seniors housing and manufactured housing communities (MHCs). MF originations data must be stratified by property type, reflecting the type of property collateralizing MF loan originations. Property types may derive from land use codes or other sources and must as many of the 5+ MF property types listed above in this section. Providing data only on conventional properties is unacceptable.

4.6 Term

Data must cover MF mortgage originations of various maturity terms. Many MF loans are balloon loans with different amortization terms than maturity terms, e.g., a 5-year balloon has a 60-month maturity term, but it may amortize over 30 years. The maturity terms must be available at the following level of disaggregation, at a minimum, and the MF originations data must be stratified accordingly: <=3 Years, 3<Years<=5, 5<Years<=10, 10<Years<=20, 20<Years<=30, >30 Years.

4.7 Lender Type Coverage

Data must cover various types of lenders originating MF mortgage loans. Coverage must include, at a minimum, banks (depository institutions), finance companies, government (FHA, VA, etc.), life insurance companies, mortgage banks, private parties (individuals), and credit unions. Identification also of private equity, debt funds, and other institutions with relatively small but growing representation in the MF originations space is preferred. Also, identification of secondary mortgage market participant, e.g., Fannie Mae, Freddie Mac, Farmer Mac, Ginnie Mae, etc. is preferred.

4.8 Example

The following example is provided to demonstrate the degree to which the MF originations data must be stratified. If a firm supplies, in accordance with the minimum requirements above:

· 5 property size classes (5-24, 25-49, 50-99, 100-149 and 150+),

· 4 property type classes (Conventional, student, military, senior, MHC),

· 6 term type classes (<=3 Years, 3<Years<=5, 5<Years<=10, 10<Years<=20, 20<Years<=30, >30 Years), and

· 7 lender classes (banks [depository institutions], finance companies, government (FHA, VA, etc.), life insurance companies, mortgage banks, private parties (individuals), and credit unions.

The example shows that for Census Tract XXXXXXXXXXX (2-digit state code concatenated with 3-digit county code concatenated with 6-digit tract code), there are 5 records representing each property size and all of them are property type conventional, term <=3 years and lender type government. Next, the property size classes repeat themselves for student housing, still with term type <=3 years and lender type government. Next, the property type classes repeat themselves for military, senior and MHC property types, still with term <=3 years and lender type government. After all property sizes and property types are exhausted, everything repeats with the next term type class and then when those are exhausted, then lender type classes are represented.

Because of this, we would expect that the dataset would be, at a minimum, 5 property classes x 4 property types x 6 term types x 7 lender classes = 840 rows per Census tract per quarter. There are 4 quarters in each of the 22 years starting with 2000 (a minimum historical data starting point) through 2021 (not including updates for 2022) or 88 quarters x 840 rows = 73,920 rows per Census Tract for the time series. Lastly, there are roughly 73,000 Census Tracts in the U.S. so 73,920 x 73,000 = 5,396,160,000 records would be expected to be in each dataset before updating.

Student

4.9 Additional Data Requirements, Services, and Information

The Contractor’s commercially available MF mortgage originations data product, at a minimum, must include:

· Access for at least ten (10) concurrent FHFA authorized users, not including an IT support person. The need for additional users may arise in the future and the resulting purchase order can be modified, as appropriate, for a negotiated, in-scope increase in-line with the Contractor’s customary commercial practices.

· Authorized end users may simultaneously use the MF mortgage originations data and be from multiple divisions across FHFA and may access and use the product from their official duty stations or remotely via FHFA’s virtual private network (VPN) when such end users are conducting business for the benefit of FHFA.

· Notwithstanding any language to the contrary in the Contractor’s license agreement, FHFA is permitted to use the MF mortgage originations data for official Government purposes including, but not limited to, reports, presentations, graphs, public releases, other publications, and examination of the regulated entities. Where appropriate, the Contractor will be cited as the data provider for such reports, presentations, graphs, public releases, and other publications, in a commercially reasonable manner.

· Information technology (IT) help-desk support services, through email and/or telephone, at no additional cost beyond the cost of the product license. The support shall be comparable to the support it provides to other customers. Help-desk support services include, but are not limited to, troubleshooting errors, login/access issues, questions related to the product (i.e., IT/technical issues), etc.

· Subject matter expert/technical support services, through email and/or telephone, at no additional cost beyond the cost of the product license. The support shall be comparable to the support it provides to other customers. Subject matter expert/technical support services include, but are not limited to, answering data-specific questions, data validation issues, data updates, etc.

· Initial set-up and configuration of the MF mortgage originations data and search capabilities, if any, on an enterprise-basis (i.e., any overall FHFA-specific account set up).

· Training on the MF mortgage originations data for new users through, but not limited to, electronic user manuals and interactive training such as conference call, remote slideshow presentations, web-based interactive meeting/test environment webinars, etc. at no additional cost beyond the cost of the product license. The training shall be comparable to the support it provides to other customers.

5.0. DELIVERABLES

5.1 Data Delivery

Contractor will deliver data electronically using an Application Programming Interface (API) or Secure File Transfer Protocol (FTP) for downloading entire datasets. The record layout will be determined at a later date.

5.2 Data Quality

Contractor will perform electronic data processing production, including edit checks and data purification efforts, archiving, and safeguarding the information.

6.0 LICENSE AGREEMENT REQUIREMENTS

The license agreement for the MF mortgage originations data product, at a minimum, must include and/or conform to the following requirements:

· At the termination or expiration of the license agreement, FHFA shall have the right to maintain and use indefinitely print or electronic copies of its reports, presentations, or other content created in accordance with the license agreement;

· Authorized end users may simultaneously use the product and be from multiple divisions across FHFA, and may access and use the product from their official duty stations or remotely via FHFA’s virtual private network (VPN) when such end users are conducting business for the benefit of FHFA;

· FHFA does not permit compliance audits; however, the license agreement may require that FHFA will provide written assurance of its compliance or other alternative agreed to in writing by the Contracting Officer;

· The license agreement shall not include an indemnification of the Contractor by the FHFA;

· The license agreement shall be governed by, and construed in accordance with, the federal laws of the United States of America;

· The Contractor shall represent and warrant that it makes commercially reasonable efforts to ensure that the software, data, or product as applicable is free of any viruses, worms, Trojan horses, malware, and/or other malicious code;

· The license agreement shall not include terms that authorize assignment of the purchase order except in accordance with Federal Acquisition Regulation Subpart 42.12;

· Contractor shall acknowledge and agree that if there is a conflict between the terms and conditions of the license agreement and those of the purchase order, the purchase order governs;

· The license agreement shall permit FHFA to use the data product for official Government purposes, including but not limited to reports, presentations, graphs, public releases, other publications, and examination of the regulated entities;

· The license agreement may acknowledge that FHFA is a federal government agency and is exempt, by law, from the payment and collection of sales taxes; and

· The license agreement shall be subject to the terms and conditions in the FHFA Subscriber Addendum (Attachment D).

7.0 SECURITY

In the event that the Contractor may visit FHFA Headquarters, the FHFA Contracting Officer’s Representative (COR) will coordinate visitor access and escorting duties.

8.0 INFORMATION TECHNOLOGY ACCESSIBILITY (SECTION 508)

Section 508 of the Rehabilitation Act, as amended by the Workforce Investment Act of 1998 (P.L. 105-220) requires that when Federal agencies develop, procure, maintain, or use information and communication technology (ICT), it shall be accessible to people with disabilities. Federal employees and members of the public who have disabilities must have access to, and use of, information and data that is comparable to people without disabilities.

Products, platforms and services delivered as part of this work statement that are ICT, or contain ICT, must conform to the Revised 508 Standards, which are located at 36 C.F.R. § 1194.1 & Apps. A, C & D, and available at https://www.access-board.gov/guidelines-and-standards/communications-and- it/about-the-ict-refresh/final-rule/text-of-the-standards-and-guidelines

E102 / 702.10 – Web Content Accessibility Guidelines (WCAG) success criteria level A & AA are incorporated as a requirement. The referenced WCAG criteria is available at http://www.w3.org/TR/WCAG20/

Applicable Functional Performance Criteria

All functional performance criteria apply when using an alternative design or technology that achieves substantially equivalent or greater accessibility and usability by individuals with disabilities than would be provided by conformance to one or more of the requirements in Chapters 4-6 of the Revised 508 Standards, or when Chapters 4-6 do not address one or more functions of ICT.

Electronic Documents and/or Support Services

All services and deliverables such as reports, training materials, support documentation and plans, shall conform to the following standards:

· E205.4 – WCAG Level A & AA Success Criteria

· E302 – Functional Performance Criteria

9.0 PERIOD OF PERFORMANCE

The period of performance will be for a one-year base period and four (4) one-year option periods beginning from the effective date of the purchase order.

10.0 GOVERNMENT-FURNISHED PROPERTY

FHFA will not furnish government property for the Contractor to fulfill the requirements of this purchase order. However, if the Contractor visits FHFA Headquarters (400 7th Street, SW, Washington, D.C. 20219) for training and related purposes, FHFA may furnish temporary access to desks, chairs, office space, internet access, and other common office furnishings.

Appendix A

Appendix B

Appendix C

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