SOW FRA TX.DOCX

U.S. Department of Housing and Urban Development

[ Statement of Work (SOW) for Appraisal Field Review Services]

Standard Statement of Work (SOW) for use by Homeownership Centers

Statement of Work (SOW) for Appraisal Field Review Services Table of Contents

Statement of Work (SOW) for Appraisal Field Review Services

Denver Homeownership Center (HOC).

C.1.2.

Geographic Area of Consideration Services under the resulting purchase order will be performed in the following counties in the State of Texas:

CLIN 001 Dallas/Fort Worth - Anderson, Archer, Baylor, Bell, Bowie, Bosque, Brown, Callahan, Camp, Cass, Cherokee, Clay, Coke, Coleman, Collin, Comanche, Concho, Cooke, Coryell, Crockett, Dallas, Delta, Denton, Eastland, Ellis, Erath, Falls, Foard, Grayson, Ellis, Erath, Fannin, Franklin, Freestone, Gregg, Hamilton, Haskell, Henderson, Hardeman, Harrison, Hill, Hood, Hopkins, Hunt, Jack, Irion, Jack, Jones, Johnson, Kaufman, Kimble, Knox, Lamar, Lampasas, Limestone, Marion, Mason, McCulloch, McLennan, Menard, Milam, Mills, Montague, Morris, Navarro, Palo Pinto, Panola, Parker, Rains, Reagan, Red River, Rockwall, Runnels, Rusk, Smith, San Saba, Schleicher, Shackleford, Somervell, Stephens, Sutton, Tarrant, Taylor, Throckmorton, Titus, Tom Green, Upshur, Van Wood, Wichita, Wilbarger, Wise, Young and Zandt;

CLIN 002 San Antonio - Arkansas, Atascosa, Bandera, Bastrop, Bexar, Bee, Blanco, Brooks, Burnet, Caldwell, Calhoun Cameron, Comal, De Witt, Dimmit, Duval, Edwards, Frio, Gillespie, Goliad, Guadalupe, Gonzales, Hays, Hidalgo, Jim Wells, Kendall, Kenedy, Kerr, Kinney, Kleberg, La Salle, Lavaca, Live Oak, Maverick, McMullen, Medina, Nueces, Real, Refugio, San Patricio, Travis, Uvalde, Val Verde, Victoria, Webb, Willacy, Williamson, Wilson and Zavala;

CLIN 003 Houston - Austin, Brazoria, Brazos, Calhoun, Chambers, Colorado, Fort Bend, Galveston, Grimes, Hardin, Harris, Jackson, Jefferson, Lake Livingston, Liberty, Matagorda, Montgomery, Orange, Polk, San Jacinto, Trinity, Walker, Waller, Washington, and Wharton

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Statement of Work (SOW) for Appraisal Field Review Services, Continued

C.1.4. Quality Control/ Performance Assessment Acceptable Performance Level (APL), at a minimum, the contractor shall deliver 90% of the completed reviews error-free. For the purpose of this contract, an error is defined as follows:

Failure to complete work within the performance period as described in the Statement of Work (SOW).

Failure to deliver an acceptable and complete ARR and all attachments as described, via electronic media and hard copy as directed by the HOC, including Work Order and Standard 1034 in SOW above.

From a random selection of 10% of the work assignment, HUD will review the work cases completed to determine if the cases contain errors as set out in the Statement of Work (SOW).

C.2.2. The contractor shall perform, as assigned by the HOC, on-site field review of appraisals completed by appraisers on the FHA roster. For each review assignment, the contractor shall inspect the property and return a completed signed Appraisal Review Report (ARR) to the HOC. The completed ARR shall be returned to the HOC via electronic transmission (FHA Connection and/or other electronic media) and followed by a mailed hard copy of the complete review, unless otherwise directed by the HOC, as well as all attachments. The hard copy shall be sent so it is received by the HOC no later than 15 business days from the date of receipt of the ARP.

C.2.3. A Field Review of Appraisal is accomplished by the field reviewer contacting the homeowner by telephone and schedule an appointment (copies of homeowner’s letters will be sent to the contractor). If the homeowner grants permission, the field reviewer shall complete the interior and exterior review. To assist in this effort, HOC staff will send an advance introduction letter to the homeowner alerting them that a field reviewer will be contacting them shortly to schedule an appointment. When access to the property is denied for the Field Appraisal Review, the contractor shall fully document attempts made to obtain access to the property and complete an exterior review. (See C.2.5)

C.2. Specific Tasks (continued)

C.2.4. Field Review of Appraisal: The contractor shall conduct an interior and exterior review whenever possible. Each interior/exterior review shall determine the accuracy and quality of the appraisal by ensuring that the factual information included in the appraisal report is correctly reported and supported. If the contractor determines the factual information included in the original appraisal report is not correctly reported, the contractor shall identify the incorrect information and provide the correct information supported by a copy of the contractor’s data source for each review. This inspection shall be completed in a way that allows the reporting of any readily observable defective conditions that do not meet HUD Minimum Property Standards (MPS) or Minimum Property Requirements (MPR). See the revised appraisal protocol Appendix D of HUD Handbook 4150.2 attached to Mortgagee Letter 2005-48. The contractor shall document any unusual items, noticeable defects and/or oversights not reported by the original appraiser, which could affect the health and safety of the occupants or continued marketability of the property. The Field Reviewer must also perform an exterior inspection of the comparables submitted in the original appraisal as well as any additional comparables used in their ARR. All data reported by the original appraiser for the subject and comparables must be verified. Adjustments for certain parts of the appraisal (i.e. location, site, neighborhood boundaries) are subjective opinions. However, the Field Reviewer is required to analyze the adjustments in the original report and comment on their reasonableness. When discrepancies are noted, the Field Reviewer must provide a narrative explanation that includes supporting documentation necessary to sustain each adverse finding that is not otherwise obvious within the appraisal report. When adjustments affect value, the Field Reviewer is required to re-grid the comparables. If it is determined that there are comparables that are more suitable, the Field Reviewer is required to provide a new sales grid with pictures of the new comparables and an opinion of value.

C.2.5 Exterior Only Review: In cases where the contractor cannot gain access to the property, an exterior only review will be conducted. Exterior only reviews consist of driving by and taking a photo of the front of the subject property and comparables from the street. For exterior reviews only, the contractor will receive 60% of the contract unit price.

C.2.7. The contractor’s field review findings for each property inspected shall be documented on the ARR and shall be fully completed and signed by the contractor. The review comments shall be specific and limited to violation items presented in a constructive manner so that the roster appraiser understands those areas of the report which are unacceptable and which need improvement. The ARR and attachments shall be returned to the HOC via electronic transmission (FHA Connection and/or other electronic media as directed) followed by a mailed hard copy via overnight mail.

C.2.8. Digital photographs are required and shall include: the interior (photographs to show representative interior rooms and layout), whenever an interior inspection is performed; exterior (photographs to show the front, rear, and sides) of the subject and all the appurtenant structures; missed repair conditions for the subject; and exterior (front only) of the comparable sales, including any new comparables the contractor used. The photographs shall be in focus with adequate lighting to permit the viewer to identify the property and the deficiency items. Third party photographs are unacceptable. If the rear of the property cannot be accessed for safety reasons, the contractor shall fully document the file. A minimum camera resolution of 800x600 in JPEG medium quality format at 200DPI with a 4X6 image size is required.

C.2.9. In the event the contractor is needed to provide expert testimony and give depositions, or otherwise participate in litigation with HUD, a separate purchase order will be issued to cover the contractor’s cost.

C.2.10. The contractor shall present to the homeowner the HOC Homeowner Introductory Letter on all interior reviews.

C.2. Specific Tasks (continued)

C.2.11. The contractor, including any of its employees (full or part time), subcontractors or consultants must avoid conflicts of interest that affect, either in reality or in appearance, the credibility of the field review report. The contractor and any of the contractor’s employees or subcontractors may continue to serve on the FHA Appraiser Roster and perform FHA appraisals. Also, they must not have any financial interest, affiliation or interest, direct or indirect, in the property being reviewed the appraiser who performed the appraisal or the builder or seller of the property.

C.2.12. Nondisclosure of information. Neither the contractor nor any of its employees, subcontractors or consultants shall divulge or release data or information developed or obtained during performance of this contract, except to authorize HUD personnel with an established need to know or upon written approval of the Contracting Officer. Information contained in all source documents and other exhibits provided by HUD are the sole property of HUD.

C.3.2. The contractor shall submit to training at the HOC conducted by HUD staff, or as directed by the HOC. This training may be accomplished by telephonic or PIC-TEL means on HUD’s Appraisal Review Process, field review procedures, use and completion of the ARR and the electronic transmission of reports in the FHA Connection or other electronic media as directed by the HOC.

C.4.1.2. Contract. A mutually binding legal document obligating the contractor to furnish services and HUD to pay for them.

C.4.1.3. Contracting Officer (CO/KO). A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings.

C.4.1.4. Days. Business days, unless otherwise specified.

C.4.1.5. HUD. The U.S. Department of Housing and Urban Development. The terms "Department of Housing and Urban Development", "HUD" and "Government" shall be synonymous and may be used interchangeably in this contract.

C.4.1.6. QUALITY ASSURANCE. Those actions taken by the Government to assure services meet the requirements of the SOW and all other service outputs.

C.4.1.7. QUALITY CONTROL. Those actions taken by a Contractor to control the performance of services so that they meet the requirements of the SOW.

C.4.2. TECHNICAL DEFINITIONS AND ACRONYMS SPECIFIC TO THIS SOW.

C.4.2.1. ARP. Appraisal Review Package. An assignment of a number of reviews sent together in one package.

C.4.2.2. ARR. Appraisal Review Report.

C.4.2.3. FHA. Federal Housing Administration.

C.4.2.4. FHA Roster. List of appraisers posted on the FHA Connection who are approved to perform FHA appraisals.

C.4.2.5. GTM. Government Technical Monitor.

C.4. Definitions (continued)

C.4.2.6. GTR. Government Technical Representative.

C.4.2.7. HOC. Denver Homeownership Center 1670 Broadway, Denver, CO 80202 1-800-225-5342

C.4.2.8. M&M. Management and Marketing contractor. The name of the M&M will be provided upon contract award.

C.4.2.9. REO. Real Estate Owned.

C.4.2.10. Single-Family Properties. Properties with one to four (1-4) units.

C.4.2.11. USPAP. Uniform Standards of Professional Appraisal Practice.

(End of SOW)