QA_Pre-sol_conf-FIN_23_Oct_12.pdf

Single Family Master Subservicer Government Responses to Industry Questions

ID REFERENCE QUESTION/COMMENT RESPONSE

1 Draft RFP, Section B

Clarification on fixed price and bid process with a changing portfolio. How do we as contractors bid on a changing portfolio?

Based on the updated pricing structure within the RFP offerors have the ability to better estimate pool characteristics.

2 Draft RFP

Can you add additional background, possibly by way of an example with regard to how the "Cancellation Under Multiyear Contract works in Base

Years 2 and 3?

Cancellation Ceiling will no longer be a part of this requirement, this will not be a Multiyear

Contract utilizing FAR 17. This requirement is a three (3) year IDIQ with two one (1) year option periods.

3 Draft RFP, Section B

Does the RFP allow for incorporating a fixed price for loans sub-serviced based on delinquency state? For ex. Could we provide a fixed price per loan for each of 30 day delinquents, 60 day delinquents, 90+ day delinquent and foreclosures?

Based on the updated pricing structure within the RFP offerors have the ability to better estimate pool characteristics.

4 Draft RFP, Section B

The labor rate table within the RFP calls for including estimated hours but given that the time and materials pricing components are highly dependent on the number of defaults and other Ginnie Mae ad-hoc requests, how should we address this section of the RFP?

CLIN 003-Default Services: The level of work when executing defaults is unpredictable and depends upon the complexity of the issues. However, the estimated time for Ginnie Mae to execute a default is approximately 1-3 days overall unless otherwise specified by Ginnie

Mae. For example, at least two Portoflio Liaisons may be required to gather documentation for 500 loans at $100 per hour for 8-hours at the default site. Given this example, the

Contractor bills Ginnie Mae $800, plus the following. Bidders should also factor in estimated fixed costs for shipping, transportation and hotel, etc. In addition, Ginnie Mae reserves the right to sell its MSRs and Assets and the Contractor is required to provide

Portfolio & Loan Sales support under C.4.4.2 (CLIN0004).

5 Conference

To the extent Ginnie Mae wants the contractor to buy eligible loans out of the pool, how ill the contractor be reimbursed for the buyout funds?

Ginnie Mae funds the repurchase funding (loan buy-out funds) at the request of the

Contractor. This funding is not the responsibility of the Contractor.

6 Conference Multiple Awards - how many contracts does the Government intend to

Award

Please refer to section B.4 MULTIPLE AWARD of the RFP

7 Conference

Small business- Would the government consider making one of the contracts a small business set-aside.

No, the CO has made the determination that this source selection is full and open.

However, that does not hinder Small businesses from proposing.

8 Draft RFP

How do we define a "small business relative to the size of the offeror? The NAICS code for this acquisition is 523110 – Investment Banking and Securities Dealing and the small business size standard is $7.0M. See Section K.4 of RFP.

9 Conference

In describing the requirements for legal services, the government discussed the need for strong in-house counsel. Are the activities discussed (i.e.. Filing of motions, loan level litigation) expected to be handled solely by in-house counsel? Most servicers engage outside local counsel for representation.

No, activities discussed are not soleley expected to be handled solely by in-house counsel.

10 Draft RFP

Can you please detail the 55% requirement for Subcontracting Goal? The 55% requirement is for the total subcontracting value. Thus, if 50% of the total contract is subcontracted out then up to 55% of that which was subcontracted has to go to small business as spelled out in the RFP. (Ex. Contact value is $100,000, offeror subs out $40K of the work, then up to 55% of that $40K has to provide subcontracting opportunities to small businesses per the RFP).

11 Conference What is the definition of a large company? Please reference question #8

12 Conference

Will Ginnie Mae be able to manage multiple "transfers in" across multiple servicer or will it be staggered?

Defaulted portfolios will be assigned and transferred to Awardees simultaneously at Ginnie

Mae's discretion. For example: If Ginnie Mae decides to transfer 3 defaulted portfolios to

Awardee #1 and 3 to Awardee #2, the transfer may or may not occur within the same month. However, the number of awards for this contract may be more than two.

13 Conference Please speak about prior servicer curtailments and new servicers obligations to prior servicer curtailments.

The Awardee will incur no liability brought by the previous Single Family Master

Subservicer. See C.4.5.1

14 Conference

Please clarify the typical notification timeline of a pending transferee. (for staffing for example) Ex: Notification of 41BB in servicing to be transferred.

Would we have to have to have a "latent" capacity immediately available or would we have some period of time to staff up (30 days, 60 days, etc.)

Upon award Immediately following approval from Ginnie Mae's Information & Technology

Management Division for the Awardee to operation, the transfer of the defaulted portfolios shall commence. This is a collaborative effort. Transition-In period is six months. After award ktr will have 24-48 hours of notification IAW C.4.3(a).

Draft SolicitationDU100G-12-R-0007 SFMSS 1 of 12

15 Conference

To satisfy the % percent subcontracting goal, must qualified firms be certified as a small disadvantage business or SDVOSB? If they must be certified is there a list of firms so designated?

Yes please refer to section L.17.3 of the RFP and FAR 19.702 and HUDAR 2452.219-70. You can verify small businesses by looking Online Representations and Certifications Application at https://www.sam.gov/portal/public/SAM/

16 Conference

Would the awarded SFMS be excluded from participating in the DASP program. Our bids on DASP would be from a separate company under the parent company?

Please reference C.4.4.4, Portfolio & Loan Sales Support. Depending on any conflict of interest and or litigation issues that may arise, the Awardee may participate in DASP its discretion if no such conflict/litigation issue exists.

17 Conference

What is the process of certifying the quarterly pre-litigation reports and semi-annual reports?

Please reference Section C.4.6-Legal Services. The process requires the Contractor's In-

House Counsel to certify by signing all reports submitted to Ginnie Mae. Required In-House

Counsel shall also certify outside counsel's work.

18 Conference

Are there synergies between manufactured housing and single family loan servicing?

Please reference Section C.2-Background that references the need to procure services for

Single Family and HECMs (HMBS). Manufactured Housing is not included in the Statement of Work (SOW) requirement. The servicing processes are distinct within the SOW for borrower outreach.

19 Conference

Transfer current portfolio to one MSS or several? Defaulted portfolios will be assigned and transferred to Awardees simultaneously at Ginnie

Mae's discretion. For example: If Ginnie Mae decides to transfer 3 defaulted portfolios to

Awardee #1 and 3 to Awardee #2, the transfer may or may not occur within the same month. However, the number of awards for this contract may be more than two.

20 Conference Will GNMA reimburse MBSS for FHA/VA non-reimbursed expenses if not due to MBSS error?

The Awardee will incur no liability brought by the previous Single Family Master

Subservicer. See C.4.5.1(b)

21 Conference

Clarify "transparent" requirement for transition-in? Transferring the loans in Ginnie Mae's defaulted portfolios to an Awardee must be seamless to borrowers. There shall be no break in servicing these loans.

22 Conference

Far part 9 only? FAR part 9 prescribes policies, standards, and procedures pertaining to prospective contractors’ responsibility; debarment, suspension, and ineligibility; qualified products;...and organizational conflicts of interest. However, all FAR clauses and provision incorporated in the contract apply.

23 Conference

Clarify "maybe inherent within our own operations"? Subcontractors may already exist within a offeror's current loan servicing operations. These may be used to meet the government's Subcontracting goals at 55% under this contract.

24 Conference

IT certification needed when? After award? IT certification and accredition is required during or at the end of the Transition In period.

The transfer of loans in Ginnie Mae's defaulted portfolio will not commence until clearance is obtained by Ginnie Mae's Information Management Division.

25 Conference SOC 2 needed 1 time or annually? This in reference to SSAE-16, a federal government annual requirement.

26 Conference Do you intend to post list of attendees online? Yes please check FBO

27 Conference

Where does the government foresee needing to have HMBS servicing capability?

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

28 Draft RFP

Please clarify again the subcontracting evaluation criteria. Can we submit without that portion in order to get a "neutral" rating?

The only offerors who will receive a neutral rating under Factor 3 – Subcontracting Plan are small businesses see 52.219-9(a). Large Businesses will not receive a neutral rating.

29 Conference

There was an emphasis put on disruption to service to borrowers during the transfer process. Any bulk transfer of servicing causes disruption for at least

60 days. Consumers use the timeframes to take advantage of the change and delay payments etc. How will you evaluate the disruption delinquency wise?

There will be negative evaluation in regards to the awardee. The transfer of loan servicing accounts shall be seamless to borrowers. There shall be no break in servicing these loans.

Draft SolicitationDU100G-12-R-0007 SFMSS 2 of 12

30 Conference

Clarify advances-we will be reimbursed monthly, so we are responsible to carry advances daily and for P&I through the remittance date, until reimbursed via the monthly invoice. How many days after invoice is received before it is paid?

Prompt Payment Act 31 U.S.C. 3903 applies. Also see Far 52.232-1 and 52.232-7 of RFP.

31 Conference

It was stated that the new contractor would not be held liable for prior servicer fails however, clearly there are documentation issues that are outstanding with the current portfolio. Those issues cannot be solved quickly nor on new loans that become delinquent going forward. How will

Ginnie Mae manage the process for self-curtailing on losses when the current servicer had no ability to clear issues to perform a timely foreclosure process?

The Awardee will incur no liability brought by the previous Single Family Master

Subservicer. See C.4.5.1(b)

32 Draft RFP

Would GNMA consider a two-tier fixed pricing structure with one base monthly fee for loans up to 59 days delinquent and another fee for borrowers with loans 60 days or more delinquent, in bankruptcy or in foreclosure? Under the current structure with only one fixed price for all loans regardless of delinquency status, the subservicer has no way of knowing the delinquency condition of future portfolios to be transferred or the possible impact of future regional or national economic conditions e.g.

recession. As a result, the subservicer will be required to make extremely conservative assumptions regarding future delinquencies which will unnecessarily increase the overall cost of the subservicing program to

GNMA, HUD and the U.S. taxpayers.

Based on the updated pricing structure within the RFP offerors have the ability to better estimate pool characteristics.

33 Draft RFP

Would GNMA consider a separate fixed price for the HECM mortgages that may be transferred for subservicing throughout the term of the agreement?

The costs to service HECM mortgages are significantly greater than forward mortgages and the subservicer will have no way to estimate the volume of possible HECMs to be subserviced, especially with the continuing growth of these loans and issuers nationwide.

Based on the updated pricing structure within the RFP offerors have the ability to better estimate pool characteristics.

Draft SolicitationDU100G-12-R-0007 SFMSS 3 of 12

34 Draft RFP

Would GNMA consider any relief from the requirement to allocate 55% of total subcontracting costs to small, women owned and minority owned businesses? Most major subservicers that have the operational, technical and management capacity to accept these portfolios for GNMA have a significant portion of their work performed by various national subcontractors. Examples of these services include data processing, lockbox processing, check clearing, treasury management, printing and mailing, tax and insurance monitoring, processing and lender placed services, property inspections, preservation and maintenance and REO management and marketing. These third party firms all operate on a national scope and have technologies that are fully integrated with the subservicer’s core loan servicing system. Given the volume of these subcontracting relationships, it would be impossible to achieve any significant percentage of total subcontracting revenues allocated to small, women owned and minority owned businesses.

No, these are HUD’s Subcontracting Goals as mandated by the U.S. Small Business

Administration.

35 Draft SOW

Under the terms of the Statement of Work, the subservicer is responsible to correct outstanding document deficiencies in order to achieve final pool recertifications. Under standard GNMA requirements for all issuers, failure to achieve recertification within the required timeframes may result in termination and loss of the servicer’s approved issuer status and loss of all

GNMA servicing and subservicing portfolios without any compensation. Loss of GNMA issuer approval would also likely result in multiple cross-defaults with other investors and private sector financing agreements for most servicers. Considering the unknown condition of the portfolios to be transferred throughout the five-year term of the agreement, will GNMA provide any protection or relief from the risk of servicer termination and portfolio loss due to uncontrolled circumstances?

The Awardee will incur no liability brought by the previous Single Family Master

Subservicer. See C.4.5.1(b)

36 General Does GNMA have any current plans to sell the servicing rights for more than

1,000 loans during the next 24 months?

Please refer to C.4.4.4 , At its discretion, Ginnie Mae reserves the right to sell its MSRs and

Assets at any time.

37 General Please provide a copy of a recent Default Assessment Report. Will provide sample attachment with official RFP.

38 Draft SOW Please provide a copy of a recent Document Custodian Exception Report. Will provide sample attachment with official RFP.

39 Draft SOW

Please confirm that GNMA will reimburse the subservicer for standard non-reimbursed expenses incurred without error on the part of the subservicer, e.g. one-third of attorneys’ costs, interest at the debenture rate, etc.

Confirmed

Draft SolicitationDU100G-12-R-0007 SFMSS 4 of 12

40 General

Please provide the monthly required P&I advance amount for the entire portfolio currently subserviced for the past twelve months.

See attached worksheet: Calculations_AdvancesCalculations_Advances. The months of

June, July, and August are furnished as work load data on FBO.

41 General Please provide the volume of outstanding T&I advances for the entire portfolio for the past twelve months.

See attached worksheet: Calculations_Advances. The months of June, July, and August are furnished as work load data on FBO.

42 Draft SOW

Please confirm that GNMA will fund the required monthly P&I advance prior to the monthly remittance date rather than reimburse the subservicer within

30 days after the monthly remittance.

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

Exhibit attachments.

43 General

Please provide the total volume of collected late fees on the entire portfolio on a monthly basis for the prior twelve months.

Providing late fees is not a reporting item under the existing and current Statement of Work

(SOW) requirement. See C.4.11(m).

44 Draft RFP Would it be possible to provide a sample of redacted previously accepted small business subcontracting plan?

The small buisiness paln template is incorparated in the RFP, see attachment 8.

45 General

Please confirm if GNMA has a preference for the subservicer to provide borrowers with annual payment coupon books or detailed monthly billing statements?

Offerors are required to adhere to industry standards and FHA, VA, RD, & PIH agency guidelines for these loan product types.

46 General

Will FHA exclude the portfolios to be transferred under the GNMA agreement from the calculation of the servicer’s Tier rating?

Offerors are required to adhere to industry standards and FHA, VA, RD, & PIH agency guidelines for these loan product types.

47 General

Will FHA exclude any prior errors in claim filings (prior to the transfer to the new subservicer) from the extrapolation of penalties under subsequent FHA claims audits?

Offerors are required to adhere to industry standards and FHA, VA, RD, & PIH agency guidelines for these loan product types.

48 Draft RFP , Section B Section B.7 – please explain how the cancellation ceilings work and how these amounts would be calculated.

Cancellation Ceiling will no longer be used for this requirment, this will not be a a Multiyear

Contract just a 5 year IDIQ.

49 Draft RFP , Section B

Section B.8 – B.11: the required price schedules include costs per contract year, however the volume of loans to be managed by the contractor will fluctuate monthly. Please clarify how the monthly base subservicing fees are to be presented.

Based on the updated pricing structure within the RFProfferors have the ability to better estimate pool characteristics.

50 Draft RFP

Section B.12 – please clarify how to present termination fees. The chart indicates volume of “6” which we presume to refer to six months however the termination costs would be quoted on a per loan basis. Also please clarify if termination costs would be payable if GNMA transfers portfolios during the term of the agreement due to sales or other reasons. Also please confirm how to complete the table in B.12 without knowing the volume of loans to be serviced or transferred at any specific time.

Not sure what is meant by "termination fees". Please calrify question.

51 Draft SOW

Section C.2 indicates the current portfolio has a total unpaid principal balance of $28 billion. Please confirm the current volume.

Please refer to updated SOW with final RFP, section C.2.

52 Draft SOW Section C.2 – please provide details of the volume of portfolios seized during

2011 and year-to-date 2012.

See attachment 8 of updated final RFP

53 Draft SOW

Section C.2 – please confirm how many loans are now subserviced by Bank of America and how many loans are now subserviced by LoanCare. Please also confirm the core servicing system currently being used by Bank of

America.

Please see question #53. The taotal loan voulme is provided. You are not privy to any information from the BOA contract.

54 Draft SOW

Section C.2 – please confirm the total volume of REO properties currently being managed. Please also advise the names of any REO management and marketing firms currently being used to manage these assets.

See attachment 9 of updated final RFP. We can not provide current contractor's vendors.

Draft SolicitationDU100G-12-R-0007 SFMSS 5 of 12

55 Draft SOW

Section C.4.1 (a) – please clarify the meaning and intent of the phrase “The transition plan shall be implemented and completed with no reduction in service to GNMA”. It is not clear how the new contractor can be held responsible for the performance of the incumbent contractor during the transition period or how the new contractor can avoid any reduction in service including temporary increases in average delinquency rates as a result of the transfer.

Contractor shall make every effort for a seamless transition.

56 Draft SOW

Section C.4.1 (c) – please confirm the volume of loans with freely transferable tax contracts in force and the companies that have issued these contracts. Please also confirm the document custodians currently being used by the incumbent contractors and if any releases fees will be charged by either document or funds custodians. In C.4.3 (c) it states that no document custodian shall impose a release fee.

All loans have tax contracts, the government will not provide th companies that issue these contracts. Admisnitering personal loans with tax contracts is a standard mortgage servicing practice. You are not privvy to the document or funds custodians of the incumbent contractors. There are no release fees, there transfre fees paid by GNMA.

57 Draft SOW

Section C.4.1 (d) – this clause requires final recertification to be obtained by the new contractor within 60 days of transfer. Please confirm the impact if recertification is not possible within this timeframe due to missing documentation, pooling errors, etc.

SOW has been updated to reflect the the "60 days" is referencing Document Cutsodian

Exception Report.

58 Draft SOW

Section C.4.3 – this clause requires defective or missing documentation to be corrected within 90 days of transfer. Please confirm the impact if document restoration is not possible within this timeframe.

Contractor shall make every effort to meet the deadline as specified in the SOW.

59 Draft SOW

Section C.4.3.1 – Special Servicing – please clarify how the contractor is to present the proposed pricing for this enhanced service program or if this program would be subject to a Statement of Work to be approved by the contractor and GNMA. This clause states that this enhanced service program would be at the sole discretion of GNMA.

Based on the updated pricing structure within the Statement of Work (SOW) requirement

Offerors have the ability to better estimate pool characteristics.

60 Draft SOW

Section C.4.4.2 – please confirm that GNMA will not pay the contractor any fees at the time of portfolio termination and transfer. Please clarify what out of pocket expenses would be reimbursable – i.e. lease termination, employee termination, etc. Also please clarify the bulleted phrase “Other miscellaneous fees in respect to a successful sale”.

Monthly servicing fees are paid to the previous SFMSS as long as loans are under their servicing authority. Please reference Section C.4.5.1 for out-of-pocket expenses. Section C

4.4.2 states"Ginnie Mae will not pay the contractor a transfer fee or any other sale fees" will be revised within the SOW. Other miscellaneous fees in respect to a successful sale has been deleted.

61 Draft SOW Section C.4.4.3 (d) – please provide samples of all required reports as listed. See Attachment 6a and 6b to RFP.

62 Draft SOW

Section C.4.4.4 (h) – please clarify that GNMA will provide all required funding for pool buyouts. We are unclear regarding the phrase “using funds provided outside of this contract.”

Ginnie Mae funds the repurchase funding (loan buy-out funds) at the request of the

Contractor.

63 Draft SOW

Section C.4.4.4 (k) – please clarify and confirm the allocation of late fees and other ancillary income. In this section it states that the contractor may keep all agency incentives fees however “late fee charges” shall be sent to GNMA.

Under Section 5 (m), however, it states that the contractor may retain all late fees from borrowers as compensation for providing these services.

In accordance with Section C.4.11(k), the Contractor retains late fees. Updated SOW will be posted with official RFP.

Draft SOW Section C.4.4.4 (m) – please clarify if future “ad-hoc” reports and information that may be requested by GNMA will be subject to a Statement of Work to be approved by the contractor and GNMA. If not, how would the contractor be able to estimate these future costs for the purposes of pricing?

Ad-hoc reports, loan level data, and related information requested by the GTR is information and data already available to the SFMSS. If reports that are outside of normal industry practices, the Cotractor an bill under CLIN 0007-Analytical & Research Services.

Draft SolicitationDU100G-12-R-0007 SFMSS 6 of 12

65 Draft SOW

Section C. 4.4.4 (n) – this clause requires the contractor to resolve origination disputes. Please clarify how the contractor would be able to negotiate and resolve these disputes without access to the originator(s) or possibly even the complete loan origination files.

Section C.4.4.4(n) specifically states, "For all portfolios serviced under this Contract, the

Cotnractor shall respond to all mortgagor inquiries, and work wit current mortgagors and prior mortgagors…"

66 Draft SOW

Section C.4.5.4 – this section states that GNMA shall reimburse the contractor for recording costs related to assignments. Please confirm that

GNMA will also reimburse the costs for assignment preparation including any required title searches to remedy missing intervening assignments and remaining gaps in the chain of title.

Please reference C.4.5.4.-Assignent to the Cotractor under CLIN0005, a reimbursable line item.

67 Draft SOW Section C.4.6 (a) (9) and (10) – please provide samples of the required Pre-

Litigation Reports and Litigation Reports.

See Attchment 7 to official RFP.

68 Draft SOW

Section C.4.6 (c) – please provide the names of any property managers or

REO firms currently being used that will be required to be retained by the new subservicer(s). Please also provide the related pricing schedules for these subcontractors that will be required to be retained.

See attachment 9 of updated official RFP. We can not provide incumbent contractor's vendors or subcontractor's pricing.

69 Draft SOW

Section C.4.7 – this clause refers to possible “substantial changes to the accounting reports” to be delivered by the contractor to GNMA. Will these changes be subject to a Statement of Work to be approved by the contractor and GNMA?

The SOW does not specify "substantial changes to the accounting reports"

70 Draft SOW

Section 5 (Additional Terms and Conditions) Paragraph (c) – please clarify the limitation on assigning or delegating any rights or responsibilities without prior consent from GNMA. Major loan servicers have multiple significant subcontracting relationships for data processing, lockbox processing, check clearing, treasury management, printing and mailing, tax and insurance monitoring, property inspections, maintenance and repairs, REO management and marketing, etc.

The contractor can not delegate its contractual obligation.

71 Draft SOW

C.5 (l) – please confirm the extent to which the contractor is required to use the wording “Contractor for the Government National Mortgage Association when acting in the capacity of the contractor”. Does this wording extend to the brand name to be used on monthly billing statements, telephone answering, the borrower website, correspondence and notices and credit bureau reporting? If not, what brand name does GNMA prefer be used for this program.

C.4.11(j) is updated to read: The title conveyed and to be used by the Contractor when acting in the capacity of the Government is: Contractor for the Government National

Mortgage Association.

72 Draft SOW

C.5 (n) – this clause states that GNMA will not bear any exposure or risk of loss arising from bad faith, negligence or misconduct on the part of the former issuer. It is likely that many issuer defaults and portfolio seizures would be for exactly this reason. Is it expected that the new contractor accept these liabilities?

Please refer to C.4.11(l)

73 Draft RFP

Section H.1 – please clarify the requirement for the offeror to be approved and in good standing with GNMA. GNMA does not to our knowledge issuer any kind of “good standing” certificate.

Correct. Offerors shall attest to being Ginnie Mae approved and provide Issuer number.

74 Draft RFP

Section L.17.2 – please clarify the requirement for the offeror to submit evidence of its expertise with reverse engineering/modeling cash flows for a variety of multiclass securities. This level of portfolio analytics is normally not included in mortgage subservicing relationships and this requirement is not detailed or referenced in any other section of the GNMA Statement of

Work.

Please see updated SOW, in the final RFP this language has been deleted.

Draft SolicitationDU100G-12-R-0007 SFMSS 7 of 12

75 Draft RFP

Please provide the number of 30 day accounts. Please provide delinquency numbers for 30 day accounts consistent with stats reported for greater delinquencies at the pre-solicitation session.

See Attachment 9, of updated RFP final.

76 Draft RFP

Would Ginnie Mae fund the P&I shortages into the P&I custodial account prior to the remittance date so that the vendor would not be required to fund them? At the pre-solicitation meeting there was a discussion about funding the advances on the monthly invoice within 3 days of receipt. We would prefer this option instead.

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.

78 Conference Where are the current loan files held? Ginnie Mae's existing MSFMSS are: (a) Bank of America, N.A. and (b) LoanCare, A Division of

FNF Servicing, Inc.

79 General

Where are the custodial files held? Is the current custodial relationship owned by Ginnie Mae an administered by the current contractors or owned by the current contractors?

Please reference Statement of Work (SOW) Ginnie Mae Master Letter Agreement requirements for document custodians (HUD form 11715), Section C.4.3-Issuer Defualt

Services(c). Custodial files are held the Ginnie Mae's existing SFMSS document custodian facilities. The document custodian is considered a by-product of Ginnie Mae's contract agreement with the SFMSS.

80 General

Would Ginnie Mae consider separating the portfolio and give the higher performing loans (less delinquency rate) to one servicer and the more delinquents to another awarding the portfolio that way?

Please reference Sections C.4.3-Issuer Default Services, C.4.3.1 and C.4.3.2. Ginnie Mae reserves the right to assign and distribute defaulted portfolios.

81 General

Is it best for a servicer who is looking to perform default servicing on severely delinquent loans to partner with a large sub-servicer and submit one bid to encompass servicing the entire portfolio, or should a default servicer submit a bid only for the segment of severely delinquent loans?

That is up to each individual offeror.

General

If a default servicer is allowed to submit a bid for only delinquent loans, can the default servicer’s bid include restrictions on the sub-servicer who is awarded the performing part of the portfolio?

No. Please reference Item #81 above. Responses to the RFP should encompass all requirements within the Statement of Work (SOW).

83 General

The foreclosure delinquency was included in the numbers previously provided but the bankruptcy numbers were not. Could you please provide the actual number of foreclosure and bankruptcy cases?

For Strats, reference attachment 9 of updated RFP.

84 Draft RFP

Is the response and bid information due to GNMA by 3pm EST, on

11/27/2012? If yes, what is the physical address to send the 5

The due date for proposals has not been established yet. However please refer to paragraph L.9 for address.

85 Page 13, C.2 Background

How does GNMA define “enhanced services” for collection and loss mitigation services? Can GNMA give an example of enhanced services?

See Section C.4.4.2 of RFP Examples of "enhanced services" are skip tracing, door knocks, best time to call logic, appointment call back model, correspondence (series of letters, emails, borrower contact efforts), and Outreach (advocacy partners, non-profits, workshops, open forums).

Page 14, C.4.1 (e), Transition In (CLIN 0001)

Is there a grace period to have the web-based site which allows for GNMA’s

GTR to upload and download loan level documents? Would a NIST secure

SFT site be acceptable? Is there a grace period to have the webbased site ready to run detailed reporting capabilities on information listing Document

Custodian information?

See updated SOW paragraph C.4.1(e). A NIST secure SFT site is acceptable provided it is in compliance with the SOW. No, ther is no grace-period.

C.4.3 (i) Issuer Default

Services – General (CLIN

0003)

1) Does GNMA wish to have all titles run on each loan at the time of transfer in/Defaulted Seizure processing (example:

within 60 days)?

It depends on the condition of the portfolio.

Draft RFP Page 18, C.4.3.1

SpecialPage 18, C.4.3.1

Special

Servicing (CLIN 0003)

1) Can GNMA give an example of “high touch” collection and loss mitigation strategies?

Refer to question # 82

Page 18, C.4.4.1 (c)

General/Loan Servicing

Operations (CLIN 0004)

1) Can GNMA define or give an example of a type of “research and retrieval request” which is not provided by the web-based site that may be required within a defined timeframe?

From time to time, the report parameters loans in litigation require special reporting. An example may be loan level detailed report, identifying uninsured loans,pooled into GNMA securities by the defalulted issuer to detemrine GNMA losses.

Draft SolicitationDU100G-12-R-0007 SFMSS 8 of 12

Draft RFP Page 19, C.4.4.3

(a) Loan Servicing (CLIN

0004)

1) When will the Loan Level Accounting Requirements be finalized? 2) When will Exhibit 1 be available for review?

The reference to Loan level accounting was removed from this SOW requirements. Exhibt 1 is not attachement 6a and 6b and will be posteed with Final RFP.

Draft RFP Page 20, C.4.4.3

(d) Loan

Servicing Management

(CLIN 0004)

1) Can reporting items be omitted from the “Executive Monthly Summary” if the information is provided on the web-based site?

If reporting capability already exists, then this is acceptable.

Draft RFP Page 20/21, C.4.4.3 (d) Loan

Servicing (CLIN 004)

1) What is defined as a “Low Balance loan?”

2) What details are requested in the terms

“Consolidated Dataset of All Loan level”?

3)Can GNMA provide an example report of data or list the data elements?

(1) Under $50k remaining principal balance; and (2) the Contractor's web-based site should have the flexibility to query data (i.e., borrower last name, property address, loan number, pool number, etc.)(3) Example is provided in C.4.4.5 of updated SOW.

Draft RFP Page 22, C.4.4.4

(k) Specific

Servicing Tasks (CLIN

0004)

1) How is this different from Page 30, 5 Additional Terms and Conditions

(m)?

2) How is loss mitigation efforts defined, outside of FHA guidelines?

3) Once the loan has completed the loss mitigation efforts per FHA guidelines, the lender/servicer is prohibited from collecting late charges; can GNMA describe what late fee charges to be forwarded to GNMA?

(1) In accordance with Section C.4.11(j), the Contractor retains late fees. Please reference the revised Statement of Work (SOW).

(2) If a loan was originated as an FHA loan and currently uninsured (or uninsurable), Ginnie

Mae would require servicing efforts to defer to FHA guidelines unless otherwise specified by the GTR. (3) In accordance with Section C.4.11(j) of updated SOW, the Contractor retains late fees. Please reference the revised Statement of Work (SOW).

Page 27, C.4.8 Variable

Default Costs (CLIN 0008)

General

1) How does this differ from Page 17, C.4.3 (i) Issuer Default Services –

General (CLIN 0003)?

Updated SOW C.4.8-Optional Variable Default Costs. This section is explanatory and refers to "mega" defaults that require work above, beyond, and extraordinary of the normal servicing efforts. As specified, "Issues include... recordation taxes, perfecting the title, retaining defaulted Issuer staff and services, etc" and work that may extend beyond the actual default period.

Draft RFP Page 45, G.1

Contract

Administration, Key

Personnel

1) May the winning contractor be given a key contact at HUD for speedy follow up on ancillary questions to better service GNMA?

The awardee will be informed who the CO and GTR will be and what their role is for this contract after award and during postward conference.

96 Conference

What is the best process for completion of HUD conveyance on Property

Preservation efforts if the vendor is not allowed to complete work once HUD has listed it as an “unallowable”?

Ginnie Mae considers offerors to be industry expert and demonstrate stredngths of its internal controls to properly manage these loans effectively by adhering to industry standards and FHA, VA, RD, & PIH agency guidelines for these loan product types.

97 General How many REO units are currently under management? See attachment 9 of updated final RFP. Strat estimates.

98 General Please define key personnel labor categories. See updated Final RFP section B.14

99 Draft RFP

In reference to past performance, “If an Offeror is proposing a teaming/subcontracting relationship, the Offeror may provide 2-3 additional references,” please clarify this means up to 3 references can provided by the subcontractor?

IAW L.17.2 If an Offeror is proposing a teaming/subcontracting relationship, the Offeror may provide 2-3 additional references. This means a total of 3 addition reference can be submitted on the Team partner/subcontractor.

100 Draft RFP, C.4.9

On page 27 under C.4.9 Information Technology, it 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 from the

Ginnie Mae’s Designated Authorizing Authority and the Chief Information

Security Officer.” Does the offeror need to begin Certification and

Accreditation prior to award? Please Clarify

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 IAW C.4.9

101 Draft RFP L.4 Are resumes included in the 60 page count for the technical/management volume?

No, please see section L.4 of RFP. Resumes are exempt from page count.

102 Draft RFP

On page 87, under past performance it states “Within this volume, all offerors must address,” but in section L no reference is made to volumes.

Please clarify if there is to be a separate past performance volume, or if the past performance volume is part of the technical management volume and is included in the 60 page count.

It is part of the PART I, TECHNICAL PROPOSAL . All reference to volume has been removed.

Yes it is included in the 60 page count for TECHNICAL PROPOSAL.

Draft SolicitationDU100G-12-R-0007 SFMSS 9 of 12

103 Draft RFP Also the draft RFP states a CD shall be submitted in MS Word version 2007, can a higher version be used? Such as 2010?

No

104 Draft RFP

Section I references several FAR clauses for certified cost or pricing data. Can

GNMA please verifty that given the T&M and FP nature of the CLINs and potential task orders that GNMA does not anticipate any requirements for certified cost or pricing data?

IAW FAR 15.403-1(b)(1) Exceptions to certified cost or pricing data requirements. The contracting officer shall not require certified cost or pricing data to support any action... (1)

When the contracting officer determines that prices agreed upon are based on adequate price competition. The government anticipates adequate competition. However certified cost and pricing data may be required for any contract modificationsprice competition. The government anticpates adequate competion. However certified cost and pricing data may be required for any contract modifications

105 Draft RFP

Section I.4.4 on page 57 of the RFP seems to only apply for cost-reimbursable type contracts. We understand the requirement to provide supporting documentation to establish price reasonableness for our fixed price and T&M rates; however can GNMA please confirm that it is not their intention to require cost audits and request certified cost and pricing data since the contract will be a T&M/FP IDIQ contract?

FAR 52.216-7 applies to cost-reimbursement contract or a time-and-materials contract. We do not anticipate need for certified cost and pricing data as this will be competed.

106 Draft RFP

Section L.18 allows provisions for reimbursement for approved ODCs including, printing costs, etc. Are these costs expected to be included in

CLINs with not-to-exceed values (0003, 0006, 0007, 0009)? If not, will the

GNMA please provide an estimate for these reimbursable costs in a separate

CLIN?

Yes. Other direct costs (ODC) are included in the government's NTE amounts

107 Draft RFP

C.4.2 - How large is the largest issuer currently monitored for default?

Is it reasonable to assume all large defaulted issuers would be split amongst the awardees?

See attachment 8, Sample Defaulted Portfolio Monthly Activity Report

108 Draft RFP

C.4.3c – When would approval NOT be given to transfer custodians? Doesn’t this section directly conflict with C.4.3j?

No. All transfers of loan files, records, and etc. to the Awardee's document custodian are subject to GTR approval and at Ginnie Mae's discretion. Upon award of this Contract, a completed and executed Master Custodial Agreement HUD form 11715 is required whether or not the Awardee is using the same document custodian as the previous Single Family

Master Subservicer. Under CLIN 0003, Section C.4.3-Issuer Default Services, all Ginnie Mae

Master Letter Agreements must be complete, executed and submitted accordingly.

109 Draft RFP

C.4.4.4k – Section states late fees to be sent to Ginnie Mae however C.5m states Contractor to retain late fees. Who gets the late fees?

In accordance with Section C.4.11(j), the Contractor retains late fees. Please reference the updated SOW.

110 Draft RFP

Is there a cap on the amount of work to be assumed by an awardee given the NTE limits stated in the Price Schedule? Are the NTE amounts in the

Schedule per awardee, or should we assume a split, and if so, how will it be split?

No, the NTE is not per awardee it is per total contract value. On the Schedule B, NTE is only an estimate and can be adjusted accordingly depending on future work delegated by the

GTR based on the level of engagement and future Ginnie Mae defaults.

111 Draft RFP

Will payments under line item 0002 (Readiness to Perform; C.4.2) be made monthly for the entire period, regardless of work awarded or not?

Yes, Contract Line Item 002 is a fixed fee paid monthly to the Contractor separate loan servicing under the other CLINs. Offerors shall estimate its level of work effort relative to technical capability, staffing resources, and IT infrastructure to be in continuous readiness mode through the period of performance under the Contract.

112 General

Why no re-pooling allowed in the contract? There is revenue in the activity that is being foregone. Does some other arrangement exist for these volumes?

Re-pooling activity is solely at Ginnie Mae’s discretion and the direction of the Government

Technical Representative (GTR).

113 General

Will we get a loan-level file to better estimate pool characteristics before bidding?

Based on the updated pricing structure within the Statement of Work (SOW) requirement offerors have the ability to better estiamte pool and loan characteristics.

Draft SolicitationDU100G-12-R-0007 SFMSS 10 of 12

114 General If no file, will stratifications, including normal mortgage industry delinquency bucketing, be provided?

For Strats, reference attachment 9 in updated Statement of Work (SOW).

115 Draft RFP Section B

If pricing under Line Item 0004 is to be held fixed for the duration of the contract and never adjusted for the performance difference from one pool to the next that is awarded from time to time, does it serve Ginnie Mae’s purpose to have bidders forced to assume worst case performance on all the pools in order that they not underbid any of the pools?

Based on the updated pricing structure within the Statement of Work (SOW) requirement offerors have the ability to better estimate pool and loan characteristics.

116 General What cross-sell activities would be allowed, if any? No.

117 General How would re-financing be done on this pool (can a Contractor refinance these borrowers)?

Awardees are required to adhere to FHA, VA, RD, and PIH servicing guidelines for loss mitigation home retention options.

118 General Are the costs to board the loans “pass-through” beyond the initial contemplated award?

No, in accordance with Section C.4.3 of the Statement of Work (SOW) requirement.

119 General

How much due diligence will be allowed? Please reference Section C.4.3-Issuer Default Services within the Statement of Work. Please be mindful each assigned portfolio must be boarded within five (5) business days. Due diligence efforts are associated with and should be detailed in offeror’s Transition In plan.

120 General

Will we be able to conduct diligence at the document custodian? Please reference Section C.4.3-Issuer Default Services of the Statement of Work (SOW) requirement. Please be mindful each assigned portfolio must be boarded within five (5) business days. Due diligence efforts is associated with and should be detailed in Bidder’s

Transition In plan.

121 General

If we choose to sub-contract HECM servicing, do we need to identify a partner for HECMs within this contract, or can that be done on a case-by-case basis?

All requirements of the SOW need to be addressed wheter subcontracted or not.

122 General

Would we as sub-servicer be excluded from bidding/purchasing the MSR’s if

GNMA decides to sell?

Please reference C.4.4.4, Portfolio & Loan Sales Support. Depending on any conflict of interest and or litigation issues that may arise, the Awardee may be excluded frompurchasing iMSR’s if GNMA decides to sell.

123 General Is there a minimum amount of loans that would be allotted here, or is that open ended?

Ginnie Mae may assign and distribute existing and future defaulted portfolios to the

Contractor.

124 Draft RFP

Line items 0005, 0105, 0205 are listed as “FP” on schedule B but are noted as

“T&M-Reimbursable” in the deck from 10/12/2012. Which is the correct method of pricing? (The answer bears on the next question as well)

Contract Line Items 0005, 0105, 0205 are updated to remove inconsistentsies.

125 General

Can you please Compare the MSS environment vs. standard Ginnie Mae servicing with regard to:

a. Describe the invoicing to GN process vs. the normal claims upon full resolution/liquidation method.

b. Attorney Fees – does the standard 1/3 non-reimbursable on fees apply, or under the MSS will it now be an invoice item at the full amount?

c. First 60 days of advance interest – under MSS do we invoice advanced interest monthly, 30 days at a time, and be paid for all months?

A. Please reference Exhibit attachments and Section J

B. Yes.

C. Please reference Exhhibit attachments and SEction J

126 Draft RFP

Based on the size of the servicing volume and the aggressive small business goals would Ginnie Mae consider subcontracting individual components of the contract (CLIN 005-CLIN 009, similarly to VA) subcontracting total sourcing of the contract?

No, however each offeror meets the subcontracting goal is their individual approach.

127 General

Will Ginnie Mae consider second tier subcontractors toward the small business goals? For example if the servicer subcontracts to an REO Asset

Management provider and then the REO provider outsources to Real Estate brokers and can report this Tier 2 spend is this acceptable toward the total subcontractor goal\s?

No, Tthe government only has privity with the Prime so we can not evaluate who your subs sub to for meeting the subcontracting goal.

Draft SolicitationDU100G-12-R-0007 SFMSS 11 of 12

128 Draft RFP

The draft RFP indicates the new awardees shall retain the service providers of the previous contractor to complete existing matters for the services of legal, appraisal and property management. Please explain for each category the definition of “completion of existing matters”.

Loans in litigation and unresolved or other actions may be in impending additional work or followup by the existing SFMSS.

129 Draft RFP

The draft RFP indicates that sales proceeds from REO shall be remitted to

Ginnie Mae, and as indicated at the conference, by the second business day following receipt. Additionally, the contractor shall not obtain reimbursement for expenses from the proceeds. Please explain the process and timing for the reimbursement of reimbursable expenses throughout the

REO asset management process.

In accordance with Section C.4.5.3 REO Sales Proceeds, the sales proceeds of an uninsured loan via third party shall be remitted to Ginnie Mae as prescribed by the required timeframe. In accordance with the Prompt Pay Act, invoice disbursements are thirty (30) days.

130 Draft RFP The draft RFP indicates a hardcopy invoicing process. Would Ginnie Mae consider an electronic invoicing process?

Invoices are required to be submitted as prescribed within the Statement of Work (SOW) unless otherwise specified by the CO.

131 Draft RFP Please provide the invoicing instructions in G.7 Final Invoice Instructions.

This section was incomplete in the draft RFP.

Sectin G will be updated with completed invoice instructions in final RFP posting.

132 Draft RFP

As required within G.4 Payments under time and materials and labor hour contracts, Approval of payments for invoices for vouchers for time-and-materials and labor-hour contract line items is delegated to the GTR. The

Contractor shall substantiate invoices or vouchers as required by the GTR.

Can Ginnie Mae provide an example of the type of supporting documentation that will be required for a time and materials or labor hour contract?

Please reference attachment 6a and 6b.

133…