Q A_DU100G-12-R-0007.pdf

Single Family Master Subservicer DU100G-12-R-0007 Questions and Answers

ID REFERENCE QUESTION/COMMENT RESPONSE

1 RFP Page 95 Sec L.17.3.1 Do we send the Past Performance Information Surveys to all 15 references, plus any references not included on the chart but included in the narrative?

No, Offeror shall submit survey for at least 3 but no more than 5, references of relevant contracts/orders within the past three (3) years from the final solicitation closing date. Surveys may be from those listed on worksheet or discussed in narrative Amendment forthcoming to clarify

2 RFP Page 95 Sec L.17.3.4 How many Past Performance Information Surveys responses are required to be received by the Government?

See Amendment to RFP paragrph L.17.3.4 The Government requests that offerors send surveys to no more than five (5) of the past performance references Points of Contact (POC) identified under paragraph L.17.3.2.

3 RFP Page 96 L.17.3.3 Is the subcontractor performing 30%+ of the work also required to fulfill the Past Performance Information requirement as stated in

Section L.17.3.4? if so, how many references are required to be received directly by the Government for the subcontractor?

See Amendment to RFP paragraph L. 17.3.3, a maximum of five (5) Past

Performance Past Performance contract references.

4 RFP para L.17.4 Please advise if any relief may be available to the restrictions outlined below: Requirement that 55% of the value of the total amount subcontracted out has to go to small business. The following subordinate goals also apply: a. Small Disadvantaged Business –

5% b. Women-Owned Small Business – 5% c. Service-Disabled

Veteran-Owned Small Business – 3% d. HUBZone Small Business – 3%.

The plan to meet this goal is a requirement and those that cannot meet will not be eligible for selection.

No, These are HUD's Small Business goals as mandated by U.S. Small business Administration. Offerors who do not meet those goals will be evaluated accordingly but the RFP does not state that not meeting the goals make the Offerors ineligible for award. IAW MM 4.4.2 HUD will consider the Contractor's ability to meet the subcontracting small business participation goal as part of the evaluation for award.

5 RFP Please advise if any relief may be available to the restrictions outlined below: Need to maintain the capacity and readiness to service portfolios of HMBS loans (Reverse Mortgage Loans). I believe there is only a very limited number of servicers nationwide that service reverse mortgages.

No, all offerors must demonstrate their ability to be in readiness mode in the event Ginnie Mae defaults an HMBS servicer. Please know Ginnie Mae cannot predict the default of any issuer.

6 Page 32 of 107 of the RFP, Section C.4.9. We are unable to locate a copy of the NIST SP 800-3 Rev 1 for review.

Can you please provide a copy of this Special Publication?

See Amendment to RFP. Corrected to read NIST SP 800-37 Rev 1.

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7 Page 12 of 107 of the RFP, Section B.14

Labor Category Descriptions – Key

Personnel

In Section B.14 Labor Category Descriptions - Key Personnel , there is a section entitled "Asset Management (CLIN0005/0105/0205 – Section

C.4.5.1)" with three job title definitions; however, these job titles are not included in the Labor Rate Table under Section B.13 Labor

Category/Rate Tables for T&M Line Items (page 10 of 107). If the intent is for these services to be T&M, what are the estimated hours for the base period as well as contract years 4 and 5 associated with each of the Asset Management job titles? If the intent is to use another method, please provide instruction.

CLIN0005/0105/0205, Asset Management is a fixed price reimbursable line item, threfore the Contractor will be reimbursed the cost for items listed in

Section C.4.5.1. However, the labor to perform the work is considered a part of the per loan servicing fee.

8 Section B.6 – Price Schedule In section B.6 Price Schedule: Base Period, CLIN 0003 Issuer Default

Services has a NTE amount of $22,550,000; however, section B.13 Labor

Category/Rate Tables for T&M Line Items specifies a NTE amount of

$18,840,000. Which NTE amount is correct?

B.6 and B.13 should reflect $22,550,000. See Amendment

9 Section B.6 – Price Schedule In section B.6 Price Schedule: Base Period, CLIN 0003 Issuer Default

Services has a NTE amount of $22,550,000; however, section B.13 Labor

Category/Rate Tables for T&M Line Items specifies a NTE amount of

$18,840,000. Which NTE amount is correct?

B.6 and B.13 should reflect $22,550,000. See Amendment

10 Section B.6 – Price Schedule CLIN 002 Contract Services - Readiness to perform is defined as a monthly fixed price cost. What defined event triggers the payment associated with having capable staff ready to service the Government's portfolios (e.g. Award)?

Question withdrawn by Requester/Potential Bidder after the program office requested a more refined question. Self Note: reference email from

Paula Smith dated 12/7/2012

11 Section B.6 through Section B.13 - Price

Schedules

The CLIN tables include NTE amounts for selected services. Since the solicitation states the Government may elect to make multiple awards, do these NTE amounts represent total contract amounts, or award amounts?

The total NTE amounts will be adjusted at award and divided amongst the awardees depending upon defaulted portfolio assignment. See

Amendment

12 Page 18 of 107 of the RFP, Section C.4.1.(f), Page 90 of 107 of the RFP, Section L.4.(c)

Does a Quality Control Plan need to be submitted as part of our proposal response? 1. Yes, the QCP should be submitted as a part of the proposal.

2. The QCP should also be updated within 72 Hours of contract award. An

Amendment to RFP will be forthcoming to clarify.

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13 RFP

Based on the questions presented by industry and the level of complexity and importance of this project, we respectfully request and extension to the RFP response submission date. Will you please provide an extension?

No, the Government sees no reason to extend the due date.

14 C.4.1, Page 17 Who is current document custodian(s) and will the new Master

Subservicer be required to transfer document custodians or enter into a new contract with the current document custodian?

Bidders are not privy to any information from Ginnie Mae's existing SFMSS contracts. Please reference questions #52 and #53 from the first round of

Q&A posted in response to the Pre-Soliciation Conference held on October

12, 2012

15 C.4.1.e, Page 18 States "Website to be available within 72 hours of receiving assigned defaulted portfolios" and C.8 page 38 states "Website to be available within 60 days of contract award." Which would you like the website available by?

Within 72 hours of receiving assignment of defaulted portfolios.

16 C.4.4.5e, Page 25 Stalled Services Received report - Can GNMA provide greater definition regarding this report, including its purpose and data reporting elements?

These are loan statuses beyond 120+ delinquency that are considered dormant. While the status of delinquency may change upon receiving payment, this is in addition to the 30/60/90 and 120+ day reporting.

17 C.4.5, Page 28 The CLIN 0005,1005, 2005, 3005 are listed as T&M. The Labor Rate

Tables do not contain an hour estimate for this Task. The Section refers to out-of-pocket expenses rather than labor hours. Can GNMA clarify if the Key personnel for Asset Management are to be billed hourly under this section and is the reimbursement and line item limit subject to out of pocket costs incurred to manage the contract?

CLIN0005/0105/0205, Asset Management is a fixed price reimbursable line item, threfore the Contractor will be reimbursed the cost for items listed in

Section C.4.5.1. However, the labor to perform the work is considered a part of the per loan servicing fee. Please also reference Question #7 above.

18 Q&A 117 Draft Phase Further clarification of GNMA Response: Can the MSS solicit loans for refinance out of these portfolios?

Efforts to make homeownership affordable to borrowers to increase their willingness to repay their loan obligations is encouraged. This is considered a normal practice in the mortgage servicing industry.

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19 B.6, Page 5 thru 9 On each of the Line items marked T&M (003, 005, 006, 007) the

Government provides a NTE total number, yet leaves a blank for the unit price. Is this a mistake? It is impossible for us to give a unit price without knowing the level of effort of the individual task orders. Please correct and/or provide further directions as to how we should handle the unit price blank on the T&M lines that are on the current pricing tables.

Each offerror should propse thier unit pricve for each particualar CLIN the

NTE amount is the maximum the Government will obligate for that line item.

20 B.6 Pg 5 On Pricing Schedule, 59 DPD and 90-119 is left off. What categories should these be in?

Please reference the updated RFP. DQ2+ (60+ Days, +Frcl); DQ3+ (90+ Days, +Frcl); DQ4+ (120+ Days, + Frcl)

21 B.6, Pg 5 For Line Item 0001 (Transition In pricing) the size of the transfer will drive the cost of the transfer. What size transfer should be assumed for

Transfer In or should we assume the entire $19 billion?

Pooled and Non-pooled information was given at the Pre-Solicitation

Conference on October 12th.

22 B.6, Pg 5 For Line Item 0001 (Transition In pricing) should the cost of ramping-up staff and facilities be included in this section?

Whatever is required for offerors to transition is what usuaslly is priced under this CLIN however, the government does not dictate any offerors pricing strategy.

23 B.6, Pg 5 For Line Item 0002 (Contract Services - Readiness to Perform) the size of the transfers will determine the excess capacity required to be maintained and priced for. What is the size of the portfolio to service that should be assumed for maintaining excess capacity? Should we assume the entire $19 billion?

At present, Ginnie Mae cannot predict future defaults of issuers servicing single family or HMBS loan types. The current Ginnie Mae defaulted portfolios were provided at the Pre-Solicitation Conference on October

12th and are provided in the attached presentation materials. However, readiness is required that demonstrates capability of servicing and should be considered upon transitioning-in

24 B.6, Pg 5 For Line Item 0002 (Contract Services - Readiness to Perform) How much excess capacity (what size transfer) should be maintained for at all times?

At present, Ginnie Mae cannot predict future defaults of issuers servicing single family or HMBS loan types. The current Ginnie Mae defaulted portfolios were provided at the Pre-Solicitation Conference on October

12th and are provided in the attached presentation materials. However, readiness is required that demonstrates capability of servicing and should be considered upon transitioning-in

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25 B.6, Pg 5 For Line Item 0003 (Issuer Default Services - General) the size of the transfers will determine the Issuer Default Services required. What is the size of the portfolio that should be assumed for transfer?

At present, Ginnie Mae cannot predict future defaults of issuers servicing single family or HMBS loan types. The current Ginnie Mae defaulted portfolios were provided at the Pre-Solicitation Conference on October

12th and are provided in the attached presentation materials. However, readiness is required that demonstrates capability of servicing and should be considered upon transitioning-in

26 B.6, Pg 5 For Line Item 0005 (Asset Management - Reimburseables) The reimburseables will vary based on the number of loans serviced. How are we supposed to price for this section?

CLIN0005/0105/0205, Asset Management is a fixed price reimbursable line item, threfore the Contractor will be reimbursed the cost for items listed in

Section C.4.5.1. However, the labor to perform the work is considered a part of the per loan servicing fee. Please also reference Question #7 above.

27 B.6, Pg 5 For Line Item 0006 (Legal Services) how should outisde legal fees be treated? Shouldn't outside legal fees be a pass-through expense to

GNMA?

Outside legal counsel fees is a pass-through as an expense to Ginnie Mae on

CLIN0006, 0106, 0206-Legal Services

28 B.14 and L.17.1.3, Pg 12 and 94 These RFP sections suggest that all labor categories are considered "Key

Personnel". Is this the Government's intention?

Please reference Section B.14 for the list of all key personnel for this procurement.

29 C.4.1, Pg 17 The SOW indicates that the Transition In period is 5 months, but the instructions in Section L.17.14 indicates that the transistion period is 6 months. Please clarify.

Transition In period is 5 months please see Amendment to RFP.

30 C.4.4.1, Pg 22 What kind of reporting do we need to show to request prior approval for any single loan status change and how long does GNMA have to approve? Why would approval not be granted for loans that change delinquency?

The type of reporting can be in the form of an MSExcel spreadsheet. GTR approval is required within reasonable timeframes and a collaborative effort.

31 C.4.4.1, Pg 22 Why is 88 days delinquent DQ2 and not DQ3 in your example? Please reference the amendment to the RFP. DQ2+ (60+ Days, +Frcl); DQ3+

(90+ Days, +Frcl); DQ4+ (120+ Days, + Frcl)

32 C.4.4.6 C, Pg 26 What specific tax reporting is required for security holders? Please reference the Ginnie Mae Guide for program requirements

34 I.4, Pg 61 Can we invoice for advance reimbursement every two weeks (based on

FAR 52.216-7)?

No the government will NOT provide advancement payment/reimbursement.

35 L.17.3.3, Pg 96 The instructions suggests that if you use a subcontractor for more than

30% of the work, that you must propose as a JV or partnership. Is this the Government's intent?

That is not what L.17.3.3 states it reads if you use subcontract or JV or partners. Anyone of those arrangements will require a separate chart/narative.

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36 L.18.3, Pg 97 Does the Government want the Contractor to illustrate how we burden our labor rates? We assume the answer is NO, as you indicate in the evaluation criteria that no "other than cost and pricing data" is required.

The government requires fully burdened labor rates. IAW L.18.3 each offeror shall provide a breakdown of their costs.

37 M.4.2, Pg 105 The evaluation criteria in the Firm Experience section, indicates that we demostrate successful transitioning of similar contract with a value of

$50M or more, including certification accreditation under NIST with 6 months. This seems to create an advantage to a certain size contractor.

We suggest that GNMA adjust to provide a more competitive playing field.

Due to the complexity of the SOW that also includes special and mega servicing portfolios, the government needs to be able to assess a Bidder's ability to transfer and mortgage service large loan volumes.

38 Draft Q&As, Pg 125 The DRAFT Q&As do not accurately answer this question, please provide direct answer: In the MSS environment, what is the 1/3 non reimbursable on fees; does GNMA guarantee payment of that (i.e. in

Legal Services Reimbursement C.4.6) or is that a servicer expense?

Outside legal counsel fees is a pass-through as an expense to Ginnie Mae on

CLIN0006, 0106, 0206-Legal Services

39 General How are advances handled when/if a servicer is requested to transfer

Ginnie Mae loans out to a new servicer or purchaser?

This is a coordination and collaborative effort with the Ginnie Mae officials:

GTR, Office of Finance, former contractor and awardee when transferring servicing. For instance, reporting cut-offs will be established for assigned defaulted portfolios.

40 General What is the maximum amount of advances that servicer would be expected to fund?

Please reference attached worksheet within the RFP:

Calculations_AdvancesCalculations_Advances. The months of June, July, and August are furnished as workload data on FBO. Please also reference

Section C.4.3-Issuer Default Services within the Statement of Work and

Exhibit attachments. Provided the Contractor submit accurate invoices with minimal or no discrepancies, invoice disbursement may remitted to the Contractor in no less than fifteen (15) days. Under the Prompt Pay Act, funds are typically disbursed within thirty (30) days. However, Ginnie Mae strives to approve and remit invoice disbursements as quickly as possible.

41 General When notified by GNMA of new portfolio, how are the Negative Escrow and Positive Escrow balances handled?

Upon notification of a new Ginnie Mae default, the GTR will assist and provide loan level data that provides P&I and T&I delinquency statuses.

This information will aid the contractor with estimating -/+ escrow for the advance request that will be sent to Ginnie Mae.

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42 General At any point or time, does the Contractor have to fund any P&I advance?

It is not the government's expectation for the Contractor to fund advances.

43 General For seized portfolios, will the Subservicer report these portfolios under the defaulted Issuer GNMA number?

If not, will the Subservicer report these portfolios under their own

GNMA Issuer number?

If not, will GNMA assign a new GNMA Issuer number specific for the seized portfolio?

The new Ginnie Mae defaulted number will be assigned.

44 General Is the contractor required to use GNMA forced placed insurance providers for delinquent and REO loans?

Contractors are required to adhere to industry practices, however, should continue to make homeownership and borrowers' monthly mortgage payments affordable.

45 C.4.9 Section C.4.9 Federal IT Security states: “The contractor must provide proof of progress toward the Self Certification prior to the award of the contract in order to obtain a letter of Risk Acceptance” .

a) Does this means that to be qualified, servicers will need to invest significant funds in preparing for FISMA compliance prior to knowing if they will be awarded a contract.

b) Will Ginnie Mae reimburse bidders for the expense incurred to prepare and issue a self-certification?

c) Does this mean that firms with prior FISMA ATO’s will receive a preference for award?

d) Will subcontractors, service providers and vendors be required to comply with FISMA/NIST requirements and have a compliance assessment?

A. No, this means that the servicer must sho the intent, either by having certified staff onboard (CISSP, CISM) or by showing the intent to bring on an independent 3rd party. B. No, Ginne Mae will not reimburse the contractor for any C&A cost.

C. No, no firms will receive any preferrential consideration for contract award. D. Yes, if the sub-contractors will be hosting any of Ginnie Mae's data.

46 General Are bidders required to identify, select, and propose contractors qualified to conduct SSAE16 audits and FISMA/NIST compliance assessments and to include their costs in our pricing?

a) Does Ginnie Mae have a list of preferred vendors or will any qualified firm be accepted?

No.

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47 RFP Attachment 9 Please confirm that Attachment 9 Strat Estimates is a current list of the portfolio by status with a total of 151,000 loans?

Attachment 9-Strat Estimates was provided for June, July and August data in an effort to assist bidders in this process at the time of advertising this procurement.

48 General Please specify the size limit for small businesses? Please reference paragraph K.4 of the RFP

49 General Some investors pay servicers for completing loan modifications, does or will Ginnie Mae consider paying a loan modification incentive?

Please reference Section C.4.4.6(k).

50 Are applicable ODCs (i.e. travel) allowed to be billed as separate line items within the Default Services CLIN?

The Default Services CLIN allows for the billing of travel expenses, however, the contractor furnish all supporting documentation and the expense must be clearly shown within the invoice.

51 Is the contractor responsible for providing title insurance? This work directed by the GTR at Ginnie Mae's discretion. Please reference

Section C.4.5.1-Asset Management

52 What is the maximum available sales commission for REO? The Contractor should follow agency guidelines.

53 Is CLIN 0004AJ a monthly management fee? Please Clarify. CLIN0004/0104/0204 is a per loan fee

54 What is the maximum closing cost assistance? Loan origination is already completed, therefore there is no closing cost assistance.

55 Could you please provide historical data for how much of the REO is submitted for claims to the insuring agency vs being marketed and sold by the MSS.

Please reference the supporting information on FBO. The months of June, July, and August data were furnished of workload data on FBO as a courtesy.

56 Within your strat estimates, could you please provide which pooled and non-pooled loans are FHA, VA, RD, and PIH Loans. (e.g. Ginnie listed

5,832 non-pooled loans as post-foreclosure, how many of these 5,832 are FHA, VA, RD or PIH?)

Please reference the supporting information on FBO. The months of June, July, and August data were furnished of workload data on FBO as a courtesy.

57 For REO that is submitted to the insuring agency, are they marketed and sold through the insuring agency’s traditional sales program (eg HUD

M&M Program) or by the Master Subservicer?

By the Master Subservicer unless otherwise directed by the GTR. Please also reference Section C.4.4.4.-Portfolio and Loan Sales support.

58 Page 22 of 107 C.4.4.2 Special Servicing

(CLIN 0004, 0104, 0204)

If a delinquent loan under special servicing is brought current during a month, does it move into a standard servicing line?

Yes.

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59 Page 10 of 107 B.13 LABOR

CATEGORY/RATE TABLES FOR T&M LINE

ITEMS

Ginnie Mae states that “the contractor may throughout the life of the contract propose additional labor categories, rates and descriptions in addition to the established labor categories, rates and descriptions that the contractor believes will be required to support requirements of this contract.” Can we propose additional labor categories with our response to this RFP beyond what the Government has provided?

Yes

60 Page 23 of 107 C.4.4.4 Portfolio and Loan

Sales (CLIN 0004, 0104, 0204)

This section is not mapped to any of the sub-CLINs on Exhibit B.6 – Price

Schedule. Where does Ginnie Mae intend the offeror to include these activities in our pricing?

Section C.4.4.4. is a sub-part of Section C.4.4 for Loan Servicing Operations

61 Page 24 of 107 C.4.4.5 Loan Servicing

(Management) (CLIN 0004, 0104, 0204)

This section is not mapped to any of the sub-CLINs on Exhibit B.6 – Price

Schedule. Where does Ginnie Mae intend the offeror to include these activities in our pricing?

Section C.4.4.5. is a sub-part of Section C.4.4 for Loan Servicing Operations

62 Page 25 of 107 C.4.4.6 Specific Servicing

Tasks (CLIN 0004, 0104, 0204)

This section is not mapped to any of the sub-CLINs on Exhibit B.6 – Price

Schedule. Where does Ginnie Mae intend the offeror to include these activities in our pricing?

Section 4.4.6 is a sub-part of Section C.4.4 for Loan Servicing Operations

63 Page 6 of 107 B.6 PRICE SCHEDULE: BASE

PERIOD, CONTRACT YEARS 1 – 3

Federal IT Security CLIN 0009 Estimated quantity is 36 months. Does

GNMA want a monthly fixed price multiplied by 36 months

Yes, The first blank is the unit monthly price and the last blank will be the total price for all 36 months.

64 Page 5 of 107 B.6 PRICE SCHEDULE: BASE

PERIOD, CONTRACT YEARS 1 – 3 Transition-

In CLIN 0001 estimated quantity is 5 months. Does GNMA want a monthly fixed price multiplied by 5 months or one firm fixed price for the entire transition-in?

The first blank is the unit monthly price and the last blank will be the total price for the 5 months.

65 Page 5 of 107 B.6 PRICE SCHEDULE: BASE

PERIOD, CONTRACT YEARS 1 – 3 Contract

Services – Readiness to perform CLIN 0002

Estimated quantity is 36 months. Does GNMA want a monthly fixed price multiplied by 36 or one firm fixed price for entire requirement?

See Answer #63

67 Page 9 of 107 B.6 PRICE SCHEDULE: BASE

PERIOD, CONTRACT YEARS 1 – 3 Transition

Out OPTIONAL CLIN 0x10

Estimated quantity is 6 months. Does GNMA want a monthly fixed price multiplied by 6 months or one firm fixed price for entire transition out?

See Answer #63, Unit price should be multiplied by 6 for the total price.

68 Page 62 of 107 Reference Section I.4(F).4(d)

– Final Indirect Cost Rates

This requirement is usually reserved for cost-reimbursable type contracts only. Does GNMA (or DCAA) plan to audit indirect rates every six months as stated in this clause?

The government intends to do as the FAR clause prescribes.

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69 Page 17 of 107 C.4.1 Transition In (CLIN

0001), L.17.1.4 pg 15

The RFP states that the transition in period is 5 months. However, section L.17.1.4 pg 15 states “Address all required certifications necessary during the six month transition-in period and thereafter.” Is the transition in period 5 months or 6 months?

L.17.1.4 pg 15 has been updated to five months. Please See amendment.

70 Page 95 of 107 Reference Section L.17.3.1 – Past Performance chart and Subcontracting Goal. Did Ginnie Mae intend to label the Subcontracting Goal as section L.17.4.1 since it follows section L.17.4 Subcontracting Plan (pg 96)?

This has been updated and is changed from 17.3.1. to 17.4.1. See amendment

71 Pg 17 of 107 C.4.1 Transition In states, “The Transition-In plan shall be furnished to the GTR within 72 hours of notification of award,” what is to be completed with the submission of the proposal?

Please see section L.17.1.4 of RFP for what offerors shall adress for transitioning. Transition Plan will be due in per the SOW.

72 Pg 17 of 107 C.4.1 (f Pg 17 of 107 C.4.1 (f) states the contractor shall provide a Quality

Control Plan within 72 hours of contract award, but Section L.4 states

Quality Plan is excluded from page count, please advise on what is to submitted with proposal and what it should entail.

The QCP should be submitted as a part of the proposal.

The QCP should also be updated within 72 Hours of contract award. Please reference the Ginnie Mae Guide for program requirments concerning the

QCP. This is self-explanatory

73 Pg 32 of 107 C.4.9 Information Technology section states, “the contractor must provide proof of progress toward the Self-Certification prior to the award of the contract in order to obtain a letter of Risk Acceptance…...” what would be considered proof?

Proof would be that the contractor must demonstrate that the assessment of the hosting system has begun by either providing proof that an independent assessor has been retained, or that it has the certified staff on hand to begin the C&A process

74 Reference: Page 15, C.2., Background Currently, how many loans are being serviced by your Master

Subservicer?

The months of June, July, and August data were furnished of workload data on FBO as a courtesy.

75 Reference: Page 15, C.2., Background Could you please provide a breakdown by type of loans and by states? Please see attachment 13 with Amendment to the RFP.

76 Reference: Page 15, C.2., Background Are there any current servicers on your watch list for possible default? Offerors are not privy to this information.

78 Reference: Page 15, C.2., Background, Paragraph 4

Does the Master Subservicer, service all loans for HMBS or just loans in a defaulted Issuer?

Single Family Master Subservicers service loan types of assigned defaulted portfolios. This may include a combination of both or one or the other.

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80 Reference: Page 15, C. 2., Background Will all HECM loans now be transitioned to and referred to as HMBS? At present, there are no HMBS loans serviced. However this does not mean that HMBS servicing will not be required, it can not be predicted. At anytime, Ginnie Mae may default an Issuer servicing HMBS. However, readiness is required that demonstrates capability of servicing this loan product type to be included in Transition-In plan

81 Reference: Page 16, C.2., Background Currently, how many defaulted issuers are there? Please reference attachment 8 on FBO. The months of June, July, and

August data were furnished of workload data.

82 Reference: Page 16, Paragraph 2 Explain what occasions would require the Master Subservicer to perform special servicing on a select group of loans?

Please reference RFP Section C.4.4.2 Special Servicing

83 Reference: Page 17, C. In taking possession of the current inventory what is the size of paper storage, digital and imaged documents?

GNMA does not have this information as each servicer is their own document custodian.

84 Reference: Page 17, C. Will the new contractors only take inventory on current accounts or all inventories from the incumbents?

Defaulted portfolios will be assigned and transferred to Awardees simultaneously at Ginnie Mae's discretion.

85 Reference: Page 17, C.4.1. Please provide a list of all tax servicers utilized in the current portfolios. Offerors are not privy to any information from Ginnie Mae's existing SFMSS contracts. The reference the updated RFP.

86 Reference: Page 17, C.4.1.a. The Transition-

In period is five months.

Is the transition in period five months or six months? The transition period is referenced as 6 months, 180 days as well as 5 months.

The transition in period I s five (5) months see Amendment to RFP

87 Reference: Page 17, C.4.1.b., " Contractor’s infrastructure…., and test sites must be

Certified (NIST)."

Do subcontractors, small business and teaming partners also need to be

Certified (NIST)?

Yes, if hardware and software will be used to host Ginnie Mae data

88 Reference: Page 17, C.4.1.e. “The

Contractor shall provide a web-based site

(compatible with Internet Explorer 7 and

Google Chrome Browser.)"

Can the subcontractors utilize Internet Explorer 7 or higher and is

Mozilla Firefox acceptable?

Yes

89 Reference: Page 18, Transition In Why are the contractors required to provide a Quality Control Plan for

Underwriting and Originating?

This is a Ginnie Mae guide requirement and taken into consideration by the government under this contract to understand the contractor's internal operations especially for providing home retention options to borrowers.

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90 Reference: Page 26, C.4.4.6., Specific

Servicing Task, Paragraph D

Currently, how many document Custodians does the portfolio have? Offerors are not privy to any information from Ginnie Mae's existing SFMSS contracts. Please reference questions #14, #52 and #53 from the first round of Q&A posted in response to the Pre-Solicitation Conference held on October 12, 2012

91 Reference: Page 26, C.4.4.6., Specific

Servicing Task, Paragraph D

Who are the portfolio document Custodians? Offerors are not privy to any information from Ginnie Mae's existing SFMSS contracts. Please reference questions #14, #52 and #53 from the first round of Q&A posted in response to the Pre-Solicitation Conference held on October 12, 2012

92 Reference: Page 27, Paragraph J If repooled, then who is the issuer? The contractor or Ginnie Mae?

"Loans modified and bought out/repurchased out of Ginnie Mae pools shall be handled as concurrent date Pools with no internal reserves, if repooled."

As a result of defaulting a Ginnie Mae issuer, all loans become Ginnie Mae's assets. Re-pooling activity is solely at Ginnie Mae’s discretion and the direction of the Government Technical Representative (GTR).

93 Reference: Page 27, Paragraph K.

"Contractor may keep all agency incentives fees for successful completion of loss mitigation efforts, however, is required to report loan level status to GTR."

Could you please explain what Ginnie Mae means by 'incentive fees'? Please reference insuring agency guidelines.

94 Reference: Page 27, Paragraph L.

"Contractor is responsible for submitting the

HUD form 11701 to the GTR at the time of issuer default."

19. Please clarify if Ginnie Mae defaults an issuer, is the contractor still responsible for form 11701?

Yes. Form HUD-11701 is required for reporting purposes, especially reporting for the pooled loan population.

95 Reference: Page 27, Paragraph L.

"Contractor is responsible for submitting the

HUD form 11701 to the GTR at the time of issuer default."

Specifically, would the contractor also be required to pay the application fee of $2,500.00?

No, there is no application fee required.

96 Reference: Page 27, Paragraph N. Currently, how many loans are in a servicing, loan origination, loss mitigation or prior foreclosure dispute at this time?

The months of June, July, and August data were furnished of workload data on FBO under attachment 8.

97 Reference: Page 27, Paragraph N. Will Ginnie Mae absorb all cost of litigation and settlement? Ginnie Mae will not absorb any costs of litigation and settlements as a result of servicing negligence.

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98 Reference: Page 29, C.4.5.4. Assignment to the Contractor-Reimbursables "If a loan is assigned to the contractor due to foreclosure, defect of mortgage instruments, bankruptcy, condemnation, title proceeding or other issues litigated in its name."

Will Ginnie Mae reimburse contractor for all other cost associated with assignment?

Section C.4.5.4 states, "Ginnie Mae shall reimburse the Contractor for all recording costs incurred pursuant the assignment of the loan."

Solicitation DU100G-12-R-0007 SFMSS 13 of 13