Attachment A - Statement of Work.pdf

STATEMENT OF WORK

LOAN-LEVEL SERVICER MORTGAGE MARKET 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, the 11 Federal Home Loan Banks, and the FHLBanks’ Office of Finance (together, 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. These institutions play critical roles in supporting our nation’s housing finance system. Fannie Mae and Freddie Mac guarantee mortgage-backed securities (MBS) and hold mortgages and MBS for investment. The Federal Home Loan Banks lend money to banks and other financial institutions using mortgages as collateral and invest in mortgage-related assets. In 2008, FHFA placed Fannie Mae and Freddie Mac in conservatorships, where they remain.

2.0 SCOPE

2.1 The FHFA continues to have a requirement for Loan-Level Servicer Mortgage Market data and the overall objective of the requirement is to allow FHFA to analyze mortgage markets nationwide and to evaluate the performance of mortgages related to the mortgage holdings of Freddie Mac, Fannie Mae, and the 11 Federal Home Loan Banks. The contractor, serving as Servicer Mortgage Market Data Aggregator, shall provide timely representative monthly loan-level data on mortgages originated in the U.S. mortgage market.

2.2 The licensing agreement under which the contractor supplies the data shall permit FHFA staff and contractors (henceforth FHFA) to:

1. Use, research, and analyze the data for Government official purposes. Such purposes include, but are not limited to:

a. Data management activities, including data validations, data cleansing, data imputations, calculation of weights and benchmark estimates, and fuzzy logic matching with other data sets.

b. The construction and use of summary statistics of the data set fields for statistical products.

For example, summary statistics that describe changes in the number of originations by credit score over several years.

c. The building of econometric models and other models. For example, models that explore the relationship between borrower characteristics and loan performance.

d. The writing of research papers and other documents, including but not limited to, memoranda, reports, examination findings, policy proposals and evaluations, working papers, and journal articles.

e. The composition of speeches, remarks, and conference presentations.

2. Comingle the data with other software or data as part of its research, analyses, and statistical products for Government official purposes.

The results of the research, analyses, statistical products, and comingling of data will be made available both within and outside of the agency. The results may be presented within the agency and to the regulated entities via memoranda, reports, and other documents. The results may be presented publicly in venues including, but not limited to, the agency website, reports, working papers, and professional journals. The results may also be presented in speeches, remarks, and conference presentations both within and outside of the agency.

The loan-level data will be used, presented, and shared internally, but will not be presented or shared publicly. Only aggregations of the data will be made available for public presentation or to the regulated entities.

2.3 To assist FHFA in its use of the licensed data, the contractor must provide basic data support including any training generally provided to other customers (through but not limited to electronic user manuals, conference calls, remote slideshow presentations, and webinars etc.) at no additional cost beyond the cost of the data product license. In particular, the contractor must make available (by phone and email) experts to answer questions about the licensed data. Such experts shall answer FHFA’s data-related questions within 48 hours.

3.0 OBJECTIVES

3.1 Data Bundle 1 – Loan-Level Servicer Mortgage Market Data

The contractor shall provide monthly loan-level servicer data on mortgages. The data must allow FHFA to analyze mortgage markets nationwide and to evaluate the performance of mortgages related to the Government-Sponsored Enterprises (GSEs) holdings relative to other mortgages. This data shall contain information on active and inactive mortgages originated nationwide since 2000. This data shall include Government and conventional mortgages, both conforming and non-conforming. Further, FHFA must be able to receive data in a timely manner and in a machine-readable open-data format so that FHFA can manipulate and analyze the data at the loan- level.

Information for each mortgage should include:

• Loan characteristics at origination and current month o Unique identifier for the mortgage loan o Mortgage type (first-lien mortgage, second-lien mortgage, Home Equity Line of Credit

(HELOC), etc.)

o Mortgage program (FHA, VA, CRA, conventional etc.)

o Mortgage source o Investor type (Ginnie Mae, Fannie Mae, Freddie Mac, Federal Home Loan Bank (FHLB), etc.)

o Underwriting code (Loan Prospector, Desktop Underwriter, etc.)

o Loan product type (fixed rate or adjustable rate, etc.)

o Loan amount and unpaid principal balance (UPB) o Jumbo mortgage flag o Documentation type (full, limited, or no documentation) o Loan purpose (purchase, refinance, cashout refinance, etc.)

o Loan-to-value (LTV) ratio o Combined LTV o Debt-to-income (DTI) ratio o Mortgage term (original, remaining, etc.)

o Private mortgage insurance flag or private mortgage insurer o Flag for non-payment recourse o Pre-payment penalty flag o Balloon flag o Balloon term o Service fee o Guarantee fee o Payment frequency o Monthly principal and interest amounts o Monthly tax and insurance amounts o Origination date o First observed date and loan age o First payment date o First interest rate reset date o Paid in full date and code o Termination date o Interest rate type (fixed rate, adjustable rate mortgage (ARM), ARM buydown, graduated payment mortgage (GPM) buydown, subsidy GPM buydown, etc.)

o Mortgage interest rate (origination rate, first observed rate, teaser rate, prior, current, etc.)

o Interest-only feature flag o ARM initial rate o ARM margin o ARM initial rate adjustment period o ARM period rate cap o ARM period rate floor o ARM life rate cap o ARM life rate floor o ARM look back o ARM months o ARM index o ARM negative amortization flag o ARM negative amortization limit

• Property characteristics o Property location at zip code level, including the state and CBSA/metropolitan division o Property type (single-family, condominium, 2-4 family, etc.)

o Occupancy type (primary residence, second home, etc.)

o Property value

• Borrower characteristics o Age o Credit score (at origination, current)

• Loan performance status at current month o Current and prior payment status and history (current, 30-days delinquent, 60-days delinquent, 90 days delinquent, 120+ days delinquent, in foreclosure, etc.)

o Loss mitigation flag and history o Schedule principal balance o Bankruptcy flag and history including cure o Bankruptcy chapter o Foreclosure status and history o Charge off amount o Paid in full code o Next payment date

3.2 Data Bundle 2 – Interest Rate Lock Data

FHFA would find value in having additional data bundles that could provide additional records and fields that can be merged into the Loan-Level Servicer Mortgage Market Data supplied. Each additional data

Malamud, Carly For my understanding, these should (if available) be included in the quote, but FHFA may choose not to purchase them at award? How, if at all, will inclusion/non-inclusion of these bundles weigh into review of quotes?

Sellers, Jennifer This is addressed in the RFQ, under Technical Capability. “The Technical Capability shall describe, in narrative form, the Quoter’s proposed overall capability to fulfill the overall requirements of Attachment A. The quoter shall provide sufficient information for the Government to determine its level of confidence in the ability of the quoter to perform the requirements of the RFQ, including the requirements of the Statement of Work, based on an assessment of its written technical quotation.” However, I will leave this question for the program office to answer. If the optional bundles could not be provided, would the quoter be deemed technical unacceptable? If so, I think we would need to remove the adjective “optional” in describing these bundles because they are, in fact, required. The only “optional” part of this is whether we want to buy the bundle, not whether the quoter can provide them at all.

Malamud, Carly Discussed on call and resolved by adding the language and deliverables matrix below.

bundle should include a unique primary key to link the additional bundle data to the historical and current Loan-Level Servicer Mortgage Market Data. Historical and current versions of the additional data bundles are preferred to a single year.

Historical interest rate lock data going back as far as 2013 and current rate lock data on a monthly basis for maximum coverage of the national single-family mortgage universe (including first liens, second liens and HELOCs) and any coverage of the national multifamily mortgage universe.

Information for each rate lock should include:

• Unique identifier for the rate lock, unique identifier that makes linking it to Loan-Level Servicer Mortgage Market Data possible is preferred.

• Date and period of the rate lock (e.g. 30 days, 60 days etc.)

• Borrower(s) information – data elements include numbers of borrowers, borrower credit scores, income, assets, and loan documentation indicators. Underwriting ratios should also be reported if available, for example, front-end payment-to-income and back-end debt-to-income ratios.

• Property or collateral information – geographic location of the home being financed (e.g. zip code, but not the street address), appraisal, purchase amount, property type (e.g. condo), and number of units (1, 2, 3, and 4).

• Loan origination information – flag for whether the rate lock resulted in loan origination and select data elements used in underwriting and marketing the loan, for example, loan-to-value ratio, loan purpose, loan amount, lien position, escrows, MI and loan pricing information, as well as indicator for Enterprise, government, MBS, or other types of mortgages.

• Lender information – type of lender or institution, information on the loan underwriting and other associated information as available.

• Investor information – type of investor and transaction details, if available.

Additional data elements are desired when they become available. Additional coverage is also desired when they become available.

3.3 Data Bundle 3 – Insurance Data

Historical insurance data going back as far as 2013 and current insurance data on a monthly basis for maximum coverage of the national single-family mortgage universe and any coverage of the national multifamily mortgage universe.

Information for each mortgage and/or property should include:

• Month and year of the data

• Unique identifier for the mortgage loan and/or property that makes linking to the Loan-Level

Servicer Mortgage Market Data possible

• Primary Property Insurance Information o Scheduled disbursement due date for primary property insurance policy o Current monthly payment amount for primary property insurance policy o Coverage amount of primary property insurance policy o Deductible amount of primary property insurance policy o Expiration date for primary property insurance policy o Flag indicating whether primary property insurance coverage is equal or above the replacement cost for the property o Flag indicating whether primary property insurance was forced placed o Flag indicating whether primary property insurance is paid by the servicer through an Escrow account o Flag indicating whether property has a condominium master policy

• Flood Insurance Information o Flag indicating whether separate flood insurance policy is required o Flag indicating property has flood insurance coverage o Flag indicating whether flood insurance was forced placed o Current monthly payment amount for flood insurance o Coverage amount of flood insurance policy o Deductible amount of flood insurance policy o Expiration date for flood insurance policy o Flag indicating whether the flood insurance policy is subject to FEMA’s “grandfather” rules o Flag indicating whether there is a discrepancy between flood zone on the flood insurance policy and FEMA’s flood zone designation

• Earthquake Insurance Information o Flag indicating property has earthquake insurance coverage o Current monthly payment amount for earthquake insurance o Coverage amount of earthquake insurance policy o Deductible amount of earthquake insurance policy

• Additional Insurance Information o Flag indicating property has other insurance coverage by type of insurance o Current monthly payment amount for other insurance by type of insurance o Coverage amount of other insurance policy by type of insurance o Deductible amount of other insurance policy by type of insurance

Additional data elements for additional perils are desired when they become available. Additional coverage is also desired when they become available.

Data Documentation for all data bundles shall include the following:

• Comprehensive data documentation files providing detailed descriptions of the content of each field, permissible values, and the meaning of different codes used in each. This may include or be referred to with filenames like data dictionary, glossary, guide, record layout, or codebook.

• Reports or documents describing market coverage of the underlying data.

• Reports or documents describing data quality checks or issues for user awareness. For example, if fields are blank or may represent questionable standardization then the discussion should note the shortcomings and any potential remedies.

• Reports or documents validating the data quality and reporting to the extent possible with other third-party sources. For example, the data might be compared to other public or private data sources to verify similar or better coverage levels or quality.

• Reports or documents describing how the underlying data are obtained and the frequency of reporting updates.

4.0 DELIVERABLES

4.1. Within 15 calendar days of contract award, the contractor shall deliver the following:

• Historical data files containing all records and data fields of any purchased data bundle. Data files shall be provided in a machine-readable format (such as CSV or delimited TXT) and shall be provided to FHFA through a secure FTP site.

• Email to the Contracting Officer’s Representative (COR) indicating the data delivery.

• Comprehensive data documentation including the record layout, data dictionary, or codebook that provide detailed description of each field and meaning of different codes used. The contractor shall also supply detailed information about the market coverage of the data.

Any data-related problems (e.g., inconsistent formatting, corrupt files, missing data) will result in redelivery of data and shall be resolved within four (4) business days.

4.2 Subsequently, the contractor shall deliver by the 25th day of each month, starting the first month after contract award the following:

• Monthly data files containing all records and data fields of any purchase data bundle. Data files shall be provided in a machine-readable format (such as CSV or delimited TXT) and shall be provided to FHFA through a secure FTP site

• Email to the Contracting Officer’s Representative (COR) indicating the data delivery

• Any changes to the comprehensive data documentation including annual update on market coverage of the data.

Each month, the data being delivered by the 25th will be for the previous month (e.g., delivery of data by January 25, 2025, would be for mortgages serviced in the month of December 2024).

Any data-related problems (e.g., inconsistent formatting, corrupt files, missing data) will result in redelivery of data and shall be resolved within four (4) business days.

4.3 Subsequently, the contractor shall also provide:

• Access to contractor’s technical support/customer service (FTP access, passwords, etc.).

• Response to technical support inquiries and customer service requests within 48 hours.

• Any training generally provided to other customers.

4.4 The following matrix details data deliveries described in Section 3.1, 3.2, and 3.3 for the base year and option years 1 through 9. The vendor must possess all three data bundles. FHFA may, at its sole discretion, choose not to procure Data Bundle 2 and/or Data Bundle 3 during the base year and/or individual option years for the duration of the contract.

Data Delivery Requirement Base Year Options Years 1 through 9

3.1 Data Bundle 1 – Loan-Level Servicer

Mortgage Market Data

Required Required

3.2 Data Bundle 2 – Interest Rate Lock Data Optional Optional

3.3 Data Bundle 3 – Insurance Data Optional Optional

5.0 LICENSING REQUIREMENTS

The license agreement for the 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;

• The contractor shall ensure that all data deliveries supplied to FHFA are licensed in a manner that permits FHFA perpetual use of data extracts that have been used for production or research in order to be able to replicate the results at any point later in time. Additionally, this means that any subset (or extract) of any data delivery received during a particular year may be used in that year and all subsequent years for replication of research and continuing production;

• 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).

6.0 INFORMATION COMMUNICATION TECHNOLOGY (ICT) 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. As such, the following requirements apply to this solicitation:

1) 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 https://www.access-board.gov/guidelines-and-standards/communications-and-it/about-the-ict-refresh/final-rule/text-of-the-standards-and-guidelines https://www.access-board.gov/guidelines-and-standards/communications-and-it/about-the-ict-refresh/final-rule/text-of-the-standards-and-guidelines

2) 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/

3) E202 – FHFA General Exception – None.

The following items are identified as containing ICT: Data Files (delimited TXT or CVS)

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.

Applicable Requirements for Software and Web Products

FHFA accepts the delimited TXT or CSV data files outlined in this SOW as meeting this requirement.

7.0 PLACE OF PERFORMANCE

Work will generally be performed at the Contractor’s place of business, and periodically at FHFA’s Washington, D.C. office located at 400 7th Street, SW. Washington, DC 20219.

8.0 PERIOD OF PERFORMANCE

The period of performance will be for one (1) twelve-month base period and nine (9) twelve-month option periods beginning from the effective date of contract.

http://www.w3.org/TR/WCAG20/