Digital Collateral Policy Technical Support PWS - HIGHLIGHTED CHANGES.docx

Performance Work Statement (PWS) Digital Collateral Program Policy and Technical Support 05/17/2024

5.5 Future Growth Development…….………………………..………………….17

Vision Statement

Strengthen the HUD Strategic Plan goal of modernizing and digitizing its operations by providing program support for the highly successful and expanding Digital Collateral Program, which provides operations for Ginnie Mae’s rapidly growing securitization of eNotes.

1 General Information

1.1 Scope of Work

Ginnie Mae needs analytical and technical services to address these challenges given the current MBS market factors including 1) operating in a highly competitive and dynamic environment in which Issuers are in constant change in response to market forces as well as housing policy reforms; 2) the significant scale of Ginnie Mae’s monthly eMortgage issuance, which has grown to over $38 Billion in just three years; and 3) the ever increasing importance of staying on the cutting edge of technology needed to successfully maintain eMortgage operations and safeguard electronic collateral. The contractor shall support these challenges by providing Independent Verification and Validation (IV&V) support services to monitor and validate the quality and effectiveness of out-sourced infrastructure managed services through program oversight and analysis and subsequent recommendations to the Government. The IV&V support services shall include:

· Technical eVault and Registry Support and Assessments

· Portfolio Transfer Facilitation & Assistance

· Program Application Analysis and Review

· Development of Training Modules, Internal and External

· Monitoring Developments in Tech and Recommendations for Implementation

· Development of Automation Processes to Support Increase Program Growth

1.2 Background

The Government National Mortgage Association (Ginnie Mae) launched the Digital Collateral Program in 2020 and began to accept electronic promissory notes (eNotes) as collateral from Mortgage- Backed Securities (MBS) Program Participants. As part of this effort, Ginnie Mae developed requirements to securitize Digital Pools and Loan Packages using Ginnie Mae’s MBS Securitization Platform.

Program participants are able to apply for entry into the Digital Collateral program. The program’s requirements are specified in the Ginnie Mae Digital Collateral Program Guide (eGuide) which is a supplement to the Ginnie Mae Mortgage-Backed Securities Guide (MBS Guide). Ginnie Mae began approving participants that met the eGuide requirements for its pilot program in October of 2020.

After a successful pilot program with a limited number of participants, Ginnie Mae opened up the program to new applicants in 2022. Since that time, Ginnie Mae has nearly tripled the size of the program and securitized over $38 Billion in mortgages backed by eNotes (eMortgages). As the program grows, demand on all aspects of the program have increased, from application review, transaction testing, to monthly reconciliations and enforcement actions. New functionality has been developed that requires advanced administration and support.

In May 2024, the Acting Secretary of HUD announced a new development in the Digital Collateral Program – commingling. Commingling permits the securitization of eMortgages in the same pools alongside of traditional paper mortgages and greatly increases the scope of the program. This move will open new market channels and create an even larger demand for applications and other Digital Collateral Program services. The purpose of this procurement is to provide the Digital Collateral team with specialized support that can offer (1) experience accessing, testing, and trouble shooting in an eVault and the MERS eRegistry (2) application review support and recommendations (3) partnership with eVault provider to develop new automations that will allow for program growth (4) monitor developments in both the policy/legislative area and technological advancements affecting eNote securitization and transfers (4) support current training modules and develop new modules in accordance with functionality expansion and training delivery to user base.

1.3 Constraints

The services identified in this PWS will adhere to the rules, regulations, laws, standards, and conventions identified by Ginnie Mae as well as within the Federal Government. Constraints include the following:

Federal Information Security Management Act (FISMA) - https://www.dhs.gov/fisma The Clinger-Cohen Act - https://www.fismacenter.com/Clinger%20Cohen.pdf Government Paper Reduction Act - https://digital.gov/resources/paperwork-reduction-act-44-u-s-c-3501-et-seq Office of Management, and Budget Circulars A-130, A-I27, and A-I23 -https://www.whitehouse.gov/omb/information-for-agencies/circulars/ Department of Housing and Urban Development regulations, Handbooks and Policies HUD 2400 series, 3150 series, 3200 series, 3300 series, 3400 series and 3500 series Ginnie Mae Chief Information Security Officer Sub-policies and procedures Executive Orders and OMB Memorandums for Information Technology and Security and CISA Binding Operational Directives. – https://www.cisa.gov/directives -https://www.whitehouse.gov/omb/information-for-agencies/memoranda/ -https://www.federalregister.gov/presidential-documents/executive-orders GAO directives - https://www.gao.gov/cybersecurity - https://www.gao.gov/fiscam - E-Government Act of 2002 Electronic Signatures in Global and National Commerce Act Uniform Electronic Transactions Act

1.3.1 Project Planning and Management

The contractor shall provide project management support under this PWS. This includes the management and oversight of all activities performed by contractor personnel to satisfy the requirements identified in this PWS. The contractor PM shall convene a monthly Technical Status Meeting with the TPOC, COR, and other vital Government stakeholders. The purpose of this meeting is to ensure all stakeholders are informed of the monthly activities and provide opportunities to identify other activities and establish priorities and coordinate resolution of identified problems or opportunities. Contractor actions performed in response to Ginnie Mae direction in support of the Digital Collateral program must be documented, examples include but are not limited to attendance in meetings for program strategy, expansion, production system/technical issues. The contractor PM shall provide minutes of these meetings, including attendance, issues discussed, decisions made, action items assigned to the COR within five workdays following the meeting.

1.4 Description of Services

The contractor shall provide support to Ginnie Mae with policy support including drafting of guidance and trainings, as well as technical support for eVault testing and transactions. Support Services shall include:

Transition In Support Transition Out Support Program Management Digital Collateral Program Administration Ongoing Assessments of Ecosystem Program Offering Expansion Future Growth Development and Volume Growth Management

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 period of performance shall be 5 years consisting of one base period of 12 months and four 12-month option periods.

1.7 Place of Performance

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

1.8 Hours of Operation

The Contractor is responsible for providing services between the hours of 7:00am - 6:00pm EST Monday thru Friday except for 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 workday will be 8 hours each day Monday through Friday. The Government reserves the right to change hours of operation or restrict contractor access. 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 hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce is essential.

1.9 Special Qualifications The Contractor shall maintain personnel that are qualified and have the credentials to access an eVault and the MERS eRegistry due to the integrations of Ginnie Mae systems with these systems and the emergent nature of some transactions within the Digital Collateral Program that require time sensitive resolution.

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 Contracting Officer will notify the Contractor of the specific date, location, and agenda within five days after contract award.

1.11 Status Meetings

The Contracting Officer, the Contracting Officer’s 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 shall 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.

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

The Contractor shall, upon the Contracting Officer's written notice, furnish Transition-In services as required. As a successor, the Contractor shall have sufficient personnel on board during the 90-day Transition-In period to ensure a smooth transition with the incumbent Contractor. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to the program is minimized. During the Transition-In period, the Contractor shall become familiar with the requirements in order to commence full performance of services by the end of the contract Transition-In period. Transition-In is not required if the successor Contractor is the incumbent Contractor.

1.14 Transition Out

To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the Contractor shall have sufficient personnel on board during the 90 -day Transition-Out period. The incumbent Contractor shall ensure a smooth transition with the successor Contractor during the Transition-Out period, prior to completion of contractual performance. The incumbent Contractor shall aid the successor in the development of plans, procedures, and methods for the assumption of all on going work. The Contractor shall provide an orderly transition of work acceptance and accomplishment, such that full control by the successor contractor is achieved by the end of the new contract Transition-In period.

2 Definitions and Acronyms

2.1 Definitions

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.

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.

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

Government Furnished Property (GFP) - Government-furnished property is 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 includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. 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.

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.

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.

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.

Workday - The number of hours per day the Contractor provides services in accordance with the contract.

Work Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

AQL - Acceptable Quality Level CFO or OCFO - Office of the Chief Financial Officer of HUD CFR - Code of Federal Regulations CO - Contracting Officer COR – Contracting Officer Representative EST - Eastern Standard Time (U.S.)

HUD - U.S. Department of Housing and Urban Development HUDAR - HUD Acquisition Regulation IT – Information Technology PM - Project Manager POC - Point of Contact POP - Period of Performance QA - Quality Assurance QASP - Quality Assurance Surveillance Plan QCP - Quality Control Plan 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 the Contractor user access privileges to the Ginnie Mae eVault. User access privileges will be granted upon successful completion of background/security investigations administered by the Government.

3.2 Facilities

No facilities will be provided during the contract period of performance.

3.3 Equipment

No government equipment will be supplied.

3.4 Materials

Copies of required materials will be provided to the Contractor in hard copy or soft copy within 15 days of contract award. 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 duties of this contract.

4.2 Equipment

The Contractor shall furnish all equipment required to perform the duties of this contract.

4.3 Material

The Contractor shall furnish all materials 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 Manager/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 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 Manager/Project Manager or alternate shall have full authority to act on all contract 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 receive assignment, guidance and direction from the COR 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 contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Contract Manger/Project Manager or alternate shall be available between the hours of 8:00am to 4:30pm, 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 to distinguish themselves from Government employees. When conversing with Government personnel during business meeting, 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.

Contractors/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 as 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.

5 Specific Tasks

5.1 Operation Support

The Contractor shall provide technical and policy support for the Digital Collateral Program, to include access to and performance of transactions within the eVault. The Digital Collateral Program includes participant requirements that are specific to the delivery of digital collateral, and also has technology, processes and controls that are unique to the program. As Ginnie Mae continues to implement the Digital Collateral Program and works to scale operations, Ginnie Mae requires support to provide services--related digital collateral program guidance, performing ongoing assessments, actively assist with portfolio transfers, and provide technical design and support for potential future challenges such as a program participant default. The scope of the procurement is comprised of four primary workstreams: Project Management, Digital Collateral Program Administration and Management Support, Ongoing Assessments of Ecosystem, Future Growth Development.

5.1.1 Project Management

The Contractor shall perform project management tasks for project planning, status reporting, and production monitoring.

Project Work Plan The Contractor shall create and maintain a Project Work Plan for Digital Collateral that adheres to HUD's system development standards for Project Work Plan preparation for accomplishing the tasks of this PWS. The Project Work Plan shall include a detailed description of all tasks planned, resource estimates, and identification of any risks and risk mitigation strategies for the completion of all tasks. Initial Project Work Plans shall be submitted to the COR within ten days after contract award. The contractor shall provide project management support under this PWS. This includes the management and oversight of all activities performed by contractor personnel to satisfy the requirements identified in this PWS. The contractor shall identify a Program/Project Manager (PM) by name who shall provide management direction, administration, quality control, and leadership of the execution of this contract.

Monthly Project Status Report The Contractor shall submit to the COR a Monthly Project Status Report for Digital Collateral Support providing the activities performed and actual progress of each task supported under the PWS. The Monthly Project Status Report shall be current as of the last business day of the month. The report shall:

· Activities during reporting period, by task (include: on-going activities, new activities, activities completed; progress to date on all above-mentioned activities). Start each section with a brief description of the task;

· Problems and corrective actions taken. Also include issues or concerns and proposed resolutions to address issue;

· Personnel gains, losses, and status (security clearance, etc.);

· Government actions required;

· Schedule (show major tasks, milestones, and deliverables; planned and actual start and completion dates for each);

· Summary of trips taken, conferences attended, etc. (attach trip reports to this MSR for reporting period);

5.2 Digital Collateral Program Administration and Management Support The contractor shall assist Ginnie Mae with management and oversight of the Digital Collateral Program. The contractor shall provide the following support:

· Provide weekly updates based on status of current task(s) and deadlines;

· Attend weekly team meetings;

· Report identifiable schedule conflicts, gaps, or short falls impacting program;

· Communicate and document program risk(s) impacting task(s);

· Report on program metrics and other key information to Ginnie Mae stakeholders regularly;

· Manage resources, collaborate with vendors and oversee tasks related to the Digital Collateral Program;

· Monitoring of technical systems and support resolution of issues;

· Support new eIssuer and eCustodian integration testing;

· Support requirements, development and business enhancements, i.e., updates to the MERS Registry.

· Monitor GNMA’s eVault for transactions impacting GNMA in its capacity as Secured Party such as transfers of Control or Location and provide recommendations to GNMA regarding appropriate processing and/or process appropriately on GNMA’s behalf.

· Advise Ginnie Mae’s when the removal of Secured Party designation is necessary

· Monitor utilization of eVault transactions against transaction allotment and report to team monthly.

· Identify, report, and track the status of potential eVault errors or malfunctions and other system issues.

Performance Standards

a) STD: Project Updates are submitted weekly.

AQL: 2 business day deviation from standard.

b) STD: eIssuers requesting integration support are responded to within 2 days of Contractor’s receipt of request.

AQL: 5% deviation from standard.

Deliverables A01 Weekly Updates A02 Monthly Project Status Report A03 Integration Testing Email A04 MERS eRegistry Update Email A05 eIssuance Authority Report

5.3 Training and Facilitate Onboarding Process

· Develop and provide training to internal Ginnie Mae resources on the management of the Digital Collateral Program.

· Develop and deliver training for Ginnie Mae external business partners understanding and preparedness to participate in Digital Collateral program

· Delivery of training shall include the development and presentation of training materials (e.g., supplemental job aid, workflows) planning and performing of transition activities, as necessary.

· Review incoming applications for completeness and coordinating with eIssuers/eCustodians on any application issues;

· Review applications for adherence to eligibility requirements and quality of the eIssuers/eCustodians on application responses;

· Form and deliver recommendations to Ginnie Mae on quality and completeness of application for acceptance or rejection of application

· Facilitate other internal reviews of applicants, such as interoperability

· Confirm eNote, eVault, MERS® eDelivery, and MERS® eRegistry test transactions;

· Validate calculation and granting eIssuance Authority; and resolve any technical issues or general questions through the onboarding process.

· Identify and support GNMA with identification and execution of opportunities to develop and/or participate in industry webinars, panels, and other live sessions concerning or related to digital collateral.

· Develop and present webinars to Issuers, Custodians and other interested parties to support ongoing education on the Digital Collateral Program;

· Develop trainings to facilitate eCustodian certification of digital collateral;

· Develop FAQs to address frequently received questions received from eIssuers and eCustodians;

· Identify program compliance issues and communicate with parties involved regarding initial ideas of root cause analysis and remediation.

· Track ongoing compliance issues to ensure follow up and/or closure

Performance Standards

a) STD: Provide written products or outlined update within 10 business days of COR request.

AQL: 2 business day deviation from standard.

b) STD: Review new eIssuer applications and respond to applicant or Digital Collateral Director within 5 days of application receipt by Contractor AQL: 2 business day deviation from standard.

Deliverables A06 Draft Policy Guidance A07 Draft Training Materials A08 eIssuance Calculations and Email A09 Applicant Test Transactions Review Report A10 Applicant Correspondence Response Email

5.4 Ongoing Assessment of the EcoSystem

As industry advances and the program matures the Digital Collateral Program policy will need to be evaluated for any necessary changes or updates including enhancements to the MERS® eRegistry. In addition, as the program continues to scale, Ginnie Mae will look for opportunities to introduce automation, where applicable. The contractor shall provide support related to any policy analysis, updates to documents and any resulting program enhancements.

The contractor shall assist Ginnie Mae with the analysis and implementation of program changes that result from internal and external factors affecting the program. The contractor shall provide the following:

· Appropriately configure and maintain GNMA’s MERS® eRegistry and eVault settings and relationships in production and lower environments.

· Track legislative developments related to eNotes at the federal and state level and provide updates and impact assessment to Ginnie Mae Digital Collateral program

· Assist in the drafting of articles, publications and All Participant Memoranda (APMs) to announce significant program milestones or changes.

· Support the development of Ginnie Mae’s position in response to industry changes;

· Collect internal lessons learned and feedback from program participants for analysis;

· Track, Develop and draft any necessary updates to Ginnie Mae’s policy and the eGuide.

· Perform Monthly Reconciliations within the eVault to determine whether all eNotes securitized have been delivered

· Determine that all MERS eRegistry fields are completed correctly per rules provided in the Ginnie Mae eGuide

Performance Standards

a) STD: Provide written products or outlined update within 10 business days of COR request.

AQL: 2 business day deviation from standard.

b) STD: Perform reconciliations monthly and provide report within 5 days after Contractor receives data from Ginnie Mae digital team AQL: 2 business day deviation from standard.

Deliverables A11 Legislative updates A12 Industry Change Response Report A13 Feedback Survey and Report A14 eGuide Update Tracker A15 Written eGuide and other Program Document Revisions A16 Reconciliations

5.5 Future Growth Development

As the Digital Collateral Program begins to scale, it is important that industry changes are evaluated for efficiency, impact and mitigation of risks. The contractor shall provide the following support:

· Operationalize Bulk Transfers – post delivery transfers are currently conducted loan by loan, which greatly inhibits growth.

· Partner with Ginnie Mae eVault Provider to design and develop automation procedures that will reduce manual tasks and reconciliations currently performed by Ginnie Mae employees to provide for sustainability of program through massive growth upswing as program is evolving from its pilot stage

· Evaluate the impact to Ginnie Mae’s Digital Collateral Program from changes to electronic notarization (eNotarization) laws, jurisdictional eRecording capabilities, or MERS® eRegistry standards and technology

· Identify and analyze opportunities to build integrations between/among GNMA internal systems involved in the pooling and transfer of digital collateral and GNMA’s eVault.

· Review the current operational processes against early program results and evaluate pain points;

· Evaluate current procedure documentation identifying any gaps;

· Evaluate risks and controls for inclusion in established or newly identified processes;

· Draft and maintain procedures to ensure processes are efficient and effective at mitigating risks and submit a recommended course of action for consideration;

· Update procedures to align with policy changes, as needed.

· Design processes necessary to permit Pooling and Immediate Issuance Transfer (PIIT) transactions to be completed with eNotes. PIIT transactions require more interoperability with Issuer’s system and eVault as well as automation for high speed bulk transfers needed for PIIT

· Create strategy for Program Participant Default and Transition Plan to MSS

· Default Management: Provide staffing for emergency support and eVault transfers necessary when Program Participant Default occurs as they are not announced in advance and always conducted on an emergency basis under short deadline for completion

· Capture feedback from Ginnie Mae external business partners in Digital Collateral arena and provide consolidated actionable steps for Ginnie Mae to expand capabilities of the program

· Operationalize comingling of paper mortgage notes and enotes pool deliveries in response to market demand for this capability

· Develop and perform assessment of comingling operations success or limitations, develop solution for limitations presented

· Operationalize future capabilities as identified by Ginnie Mae to meet market demands.

Performance Standards

a) STD: Obtain permission from Digital team to perform bulk transfer operations, and perform tasks within the eVault, within 24 hours after transfer requests are sent by program participant or transfer requests will expire.

AQL: 0% deviation from standard.

b) STD: Respond to Ginnie Mae default announcement on the same day with a plan of how staff will assist to address the emergency.

AQL: 0% deviation from standard.

c) STD: Provide written products or outlined update within 10 business days of COR request.

AQL: 2 business day deviation from standard.

Deliverables A17 Bulk Transfer Plan A18 Bulk Transfer Processing A19 Automation Plan A20 Execution of Automation Plan A21 Risk Control Assessments A22 Process Evaluation Report A23 PIIT Process Design A24 Default Transition Plan A25 Default Strategy Execution and Staffing A26 Commingling Plan

6 Deliverables and Milestones The Contractor shall complete all work, deliver all deliverables, and adhere to all milestones as specified herein. The Government reserves the right to make changes to delivery dates.

Initial Project Work Plan due to the COR within 10 days after contract award; subsequent updates provided at scheduled weekly team meetings

Submit to COR within 5 business days after the end of the reporting month

Submit review no more than 3 days after testing results are provided to the Contractor for review

Submit within 2 days of Contractor learning of changes required in the MERS eRegistry

Submit along with Monthly Status Report

Provide draft or outline within 5 days of task assignment

Provide draft or outline within 5 days of task assignment

Provided no later than the 5 business day of each month

Provide at weekly team meetings

Respond to Applicant or Digital Director with planned response within 2 days of Contractor receipt of Applicant correspondence

Include any legislative updates during monthly report.

Discuss any relevant industry changes during weekly team meetings

Solicit feedback from participants every 6 months, or as participants provide it, and report within 10 days of collecting feedback

Track changes discussed in weekly meetings or through email and provide tracker upon request

Make tracked eGuide revisions or revisions to other program documents within 10 days of request Upon Request

Provide monthly within 3 business days of receipt of digital data from Ginnie Mae

Develop draft of Bulk Transfer Plan within 60 days of contract award. Provide requested revisions within 2 weeks of request.

Within 60 Days

Perform bulk transfer processing and approvals within the eVault within the same 24 hours that transfers are sent by program participants or transfers will expire

Provide draft within 4 months of contract award. Provide revisions upon request.

Proceed with development needed to execute Automation Plan upon approval of plan by Digital Team

Perform and report with monthly reports

Contractor will evaluate existing processes monthly and include any recommendations for change as needed in monthly report

Create and present a draft process flow to allow for Ginnie Mae to safely include eNotes in the PIIT Process, utilizing results of bulk transfer research and planning, within 120 days of contract award. Provide revisions as needed.

Develop draft Default transition plan within 60 days of contract award. Provide revisions as needed.

Provide staffing with critical emergency timing within 24 hours of Ginnie Mae default announcement of Digital Collateral Program participant

Develop draft Default transition plan within 90 days of contract award. Provide revisions as needed.

Within 90 days

6.1 Quality Control Plan

The Contractor's QCP shall be delivered to the COR with 10 business days after contract award (or with the Contractor's proposal if it is an evaluation factor). A revised copy of the QCP shall be submitted to the COR within 5 business days of any changes made thereafter.

6.2 Acceptance Criteria

Each contract deliverable shall meet the following inspection and acceptance criteria in additional to any "Inspection and Acceptance” contract terms and conditions:

· Deliverables shall incorporate all HUD comments;

· All deliverables shall be provided to the designated COR first in draft format for review and comment unless specified otherwise by the COR;

· Subsequent final reports shall incorporate the comments, changes, edits, and concerns expressed to the Contractor by the COR. All deliverables shall be grammatically correct, reflect comprehensive research, incorporate complete analysis, and address HUD concerns;

· Acceptance of all deliverables shall be provided in writing by the COR within 5 business days. Upon written notification by the PM/COR, the Contractor shall make any required revisions and resubmit the documentation within 5 business days, and/or submit a final draft within two (2) business days; The COR will inform the Contractor of the final draft.

· The Contractor shall provide any further refinement needed for documents required by the COR;

· All deliverables must be in compliance with Section 508 requirements as established by the Section 508 access board and other HUD guidelines; and

· In the event the Government deems a deliverable as unacceptable and the deliverable is rejected, the Contractor shall rework the deliverable at no cost increase to the contract. In the event the Government deems the services are unacceptable and rejects the service, the Contractor shall take action necessary to correct deficiencies and bring the service into compliance with the acceptability standards of the contract. The Contractor shall not be entitled to payment for services rejected as non-compliant if it fails to correct the critical defects within the period for which a progress payment for such services might otherwise be due.

All deliverables shall be grammatically correct, reflect comprehensive research, incorporate HUD feedback / comments and address HUD concerns.

7 Performance Requirements Summary The summary chart below lists the contract's primary requirements, the associated performance standards, the expected target performance, and the methods of surveillance. While several contract requirements are not listed in the chart below, requirements not appearing on the PRS chart do not negate the Contractor's obligation to perform all requirements as specified in the contract. Additionally, HUD reserves all rights and remedies under the provisions and clauses of the contract when performance of any contract requirement, whether or not listed below, is unacceptable.

HUD will develop a Quality Assurance Surveillance Plan to be used to provide contract oversight. In conjunction with the Contractor's Quality Control Plan and various other methods of assessing performance, the COR will perform on-site reviews and/or other types of verification to determine that the specified target performance requirements have been met.

Regular review of Contractor performance is critical to the overall success of the contract.

8 Related Documents The Contractor shall abide by all applicable regulations, publications, manuals and policies and procedures in the performance of this contract.

Digital Collateral Program Guide (eGuide)

Performance Requirement Summary (PRS)

AQL: 2 business day deviation from standard.

b) STD: eIssuers requesting integration support are responded to within 2 days of Contractor’s receipt of request.

AQL: 5% deviation from standard.

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

AQL: 2 business day deviation from standard.

b) STD: Review new eIssuer applications and respond to applicant or Digital Collateral Director within 5 days of application receipt by Contractor

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

AQL: 2 business day deviation from standard.

b) STD: Perform reconciliations monthly and provide report within 3 days after Contractor receives data from Ginnie Mae digital team

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

AQL: 0% deviation from standard.

b) STD: Respond to Ginnie Mae default announcement on the same day with a plan of how staff will assist to address the emergency.

AQL: 0% deviation from standard.

c) STD: Provide written products or outlined update within 10 business days of COR request.

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