Pre-Proposal_Conference_(Final).pptx

HUD’s Home Equity Conversion Mortgage (HECM) Business Service Provider

Pre-Proposal Conference

July 14, 2014

U.S. Department of Housing and Urban Development (HUD) The Office of the Chief Procurement Officer Community Service/Multifamily Housing Support Division

WELCOME !!!

Brooke Mondale Auditorium Suites A & B

8:00 a.m. - 2:00 p.m.

Introduction

Brenda K. Lee, Contracting Officer

Remarks

Jimmy Scott, Assistant Chief Procurement Officer

Solicitation Overview Pre-Proposal Communication

Classification: UNCLASSIFIED After RFP release

Formal RFP is the only contract action to allow industry to respond with proposal

Pre-Proposal Conference Objectives

To promote a common understanding of:

HECM BSP requirement

Proposal Instructions

To provide questions and answers and or comments in reference to the solicitation

Networking Opportunity

Rules of Engagement

The Government will consolidate all written questions received and post the “official” answers to FedBizOpps.

Additional questions shall be sent via email to BSPpre-prosconf@hud.govno later than July 25, 2014 by 2:00 p.m. EST.

All communications are limited to the Contracting Officer only!!!

Acquisition Overview

L.2.GENERAL INSTRUCTIONS

INTRODUCTION

The following instructions will establish the acceptable minimum requirements for the format and contents of proposals. Special attention is directed to the requirements for technical and business proposals to be submitted in accordance with these instructions.

Single Award. The U.S. Government anticipates awarding approximately one (1) contract as a result of this Solicitation.

If an Offeror does not follow the instructions set forth herein, the Offeror's proposal may be eliminated from further consideration or the proposal may be down-graded and not receive full or partial credit under the applicable evaluation criteria.

If an Offeror does not understand the instructions in this Solicitation, then it should submit questions to the Contracting Officer via email for clarification during the pre-proposal conference or before the questions submission deadlines.

Accurate and Complete Information. Offerors must set forth full, accurate and complete information as required by this RFP. The penalty for making false statements to the Government is prescribed in 18 U.S.C.1001.

Offer Acceptability. The Government may determine an offer to be unacceptable if the offer does not comply with all of the terms and conditions of the RFP and prospective contract:

(1) Signed Standard Form 1449

(2) Submission of proposed prices fixed price line item as required by Section B and Section J Attachment B Pricing Sheet of this RFP;

3) Completion of the "Representations, Certifications, and Other Statements of Offerors" in Section K;

(4) Offerors should not assume that the Contracting Officer will independently obtain information necessary to evaluate the offeror’s proposal, and should therefore supply all information required by this RFP for the evaluation of its proposal. The offeror’s failure to provide the information required could result in rejection of the proposal.

(5) Proposals shall be submitted in two parts, Technical Part I and Business Part II. Each of the parts must be complete in itself so that evaluation of each part may be conducted independently, and so that the technical part may be evaluated strictly on its own merit

Questions regarding this announcement shall be submitted in writing via e-mail to email address BSPpre-prosconf@hud.gov by July 25, 2014 BY 12:00 p.m. EST.

Verbal questions will NOT be accepted. Questions will be answered during the event as time permits and will also be posted to the Federal Business Opportunities (FedBizOpps) website following the event. Questions shall NOT contain proprietary or classified information. The Government does not guarantee that questions received after the due dates will be answered.

All documents required for the offer submittal, including amendments to the offer submittal, shall be in electronic submittal to https://www.fedconnect.net

No faxes or hard copy will be accepted!, please ensure your offer has been received.

L.8. SUBCONTRACTORS

If subcontractors are proposed, please include a commitment letter from the subcontractor detailing:

a) Willingness to perform as a subcontractor for specific duties (list duties).

b) What priority the work will be given and how it will relate to other work.

c) The amount of time and facilities available to this project.

d) The prime contractor must do at least 50% of the work in accordance with FAR Clause 52.219-14 Limitations on Subcontracting.

f) A complete price proposal in the same format as the offeror's price proposal.

L.10. Technical And Business Proposal Submission

Proposals shall be submitted electronic through FedConnect,”The Government Acquisition & Grants Portal”. Offerors may find FedConnect Instructions and register at https://www.fedconnect.net/FedConnect/PublicPages/FedConnect_Ready_Set_Go.pdf.

The FedConnect Support Center is staffed Monday through Friday 8:00 a.m. to 8:00 p.m. EDT, and close on federal holidays. Phone Number1 800-899-6665 or email at support@fedconnect.net.

Mitigation Plan

Mitigation plan in accordance with PWS paragraph 5.2.18, 5.2.19 and 5.2.2 shall be submitted with the proposal. These plan will not be evaluated, however they will be reviewed by the Contracting Officer as a part of the responsibility determination and incorporated into the contract.

L.11. Part I Technical Proposals Instructions

(a) Offerors must organize the technical proposal to follow the technical evaluation criteria listed in Section M.

(b) Text color shall be black. Color may be used in graphics or charts for greater clarity at the offeror’s option. Text in graphics and charts shall be no smaller than 9-point Arial Narrow; text in tables shall be no smaller than 9-point Arial. The size and font of headers and footnotes are not dictated. No fonts may be condensed.

(c) The written Technical Proposal (Volume 1) Factor 1 Technical Understanding/Approach is limited to 15 pages, Factor 2 Management Plan is limited to 10 pages, Factor 3 Key Personnel, and Resumes are limited to 2 pages per person. Offerors shall use only 8.5 inch by 11 inch (210mm by 297mm) paper, single-spaced pages with margins no less than one inch on each border. Number each page consecutively. Do not use a font size smaller than Times New Roman 12 or equivalent size font. Information submitted over page limitations will not be evaluated.

(d) Total page count limitations do not include: title and back page: Table of Contents; and Section Dividers that do not contain information other than title of Section.

Note: A page in the technical proposal that contains a table, chart, graph, etc., not otherwise excluded below, is subject to the page limitation.

Not included in this page limitation are the following:

Table of Contents;

Dividers-

Attachments which contain biographical information (i.e., resumes); RESUMES ARE LIMITED TO 2 PAGES EACH.

Charts, such as Management Structure Organizational Chart(s)

As part of the proposal submission, offerors shall submit a Proposal Matrix using the table below or similar format, which maps what page of the proposal addresses each Performance Work Statement of Tasks requirement identified under Technical Approach, and which page of the proposal fully addresses each Evaluation Factor. The offeror shall use the appropriate column to fill in the requirement as stipulated in the RFP to which the page/section number applies

L.12. Technical Discussion

Technical understanding/approach (shall not exceed 15 pages) The offeror shall submit A technical approach that demonstrates logical and feasible methods for meeting the requirements described in the performance work statement tasks listed below:

The Offeror Must Only Address The Specified Tasks Identified Below:

Task 3 – Delivery, Testing, And Validation Of Web-based HECM Business Services Providers Task 4 – Parallel Testing – Task 5 – HECM Business Services Task 11 – Accounting Task 14 – Help Desk Task 16 – System Security

The Offeror Shall Submit A Project Schedule That Demonstrates A Clear Understanding Of The Required Operations And HUD Requirements With Realistic Timeframes For Performing All Tasks.

If The Offeror Is Proposing Subcontractors, The Offeror Shall Clearly Identify What Aspects Of The Work Will Be Performed By The Prime And What Aspects Of The Work Will Be Performed By Each Subcontractor In Its Technical Approach

MANAGEMENT PLAN (Shall not exceed 10 pages) The offeror shall submit a Management Plan that is clear, concise, and demonstrates that it will result in meeting the objectives and requirements contained within the Performance Work Statement tasks identified under the instructions for Technical Approach.

The offeror shall submit a Management Plan that details:

key personnel and responsibilities;

proposed subcontracting arrangements and reporting relationships of all subcontractors;

a plan that demonstrates successful communication and coordination between the contractor and the government personnel/roles;

clear lines of authority from the top of the organization to all those working on this effort;

Preliminary Quality Control Plan The offeror shall submit a Preliminary Quality Control Plan that demonstrates an understanding of the business requirements by describing effective and independent quality control methods and procedures as stated in PWS to ensure that all tasks are completed in accordance with the performance standards listed in the solicitation.

KEY PERSONNEL

The offeror shall submit Key Personnel resumes that demonstrate sufficient relevant prior experience, qualifications, education, and certification for personnel proposed to fill the key positions identified by the offeror. Additionally, the Key Personnel proposed and the number identified must reflect adequate capabilities or skill sets to ensure the outcome and benefits sought by the government are achievable. The offeror shall state what percentage of the Key Personnel’s work week time will be dedicated to the performance of the contract.

Letters of commitment are required for all Key Personnel.

Resume shall not exceed 2 pages per person submitted.

Specific Key Personnel requirements are as follows:

Contract/Project Manager (Operations Manager)

At least Five years of Project Management experience that includes four years of professional experience in an information technology, information management, business or related field.

At least Five years of Project Management experience that includes four years of professional experience in an information technology, information management, business or related field.

Certified Project Management Professional (PMP) and/or Certified Program Management Professional (PgMP) and be in good standing with the Project Management Institute (PMI)

Demonstrated skill in leading multifunctional teams; meeting and/or exceeding contract requirements on schedule and within budget; managing large scale government projects; providing guidance and direction to subordinate employees; assigning tasks to technical and professional staff; and ensuring completion of projects and subprojects.

Alternate Contract/Project Manager (Program Director)

At least Five years of Project Management experience that includes three years of professional experience in an information technology, information management, business or related field.

Certified Project Management Professional (PMP) and/or Certified Program Management Professional (PgMP) and be in good standing with the Project Management Institute (PMI)

Demonstrated skill in leading multifunctional teams; supporting senior project managers in meeting contract requirements on schedule and within budget; managing medium to large scale government projects; providing guidance and direction to subordinate employees; assigning tasks to technical and professional staff; and ensuring completion of projects and subprojects.

Technical Project Manager

At least Five years of Project Management experience that includes three years of professional experience in an information technology, information management, business or related field.

Certified Project Management Professional (PMP) and/or Certified Program Management Professional (PgMP) and be in good standing with the Project Management Institute (PMI)

Experience in SaaS/ITaaS web-based business solutions for Mortgage Loan Servicing Experience in Help Desk management

Experience managing subordinate trainers or actual training of students with various experience levels in mortgage loan servicing and mortgage loan servicing software applications.

Senior Consulting Analyst – Subject Matter Expert in FHA HECM Mortgage Loan Servicing

At least ten years of experience in the field of financial management, HECM mortgage loan servicing, and mortgage loan servicing information technology applications

Subject Matter Expertise in FHA Mortgage Loan Servicing and experience with portfolio management.

Portfolio Management Professional (PfMP) desirable

Senior Consulting Analyst – Subject Matter Expert in Federal IT Security

At least Ten years of experience in the field of financial management and Federal IT security standards

Subject Matter Expertise in Federal Information Systems Security and implementation of Federal Information System Controls Audit Manual (FISCAM) requirements

Application Developer II

Experience in IT systems engineering/design/implementation Certified Systems Engineering Professional (CSEP) and in good standing with the International Council on Systems Engineering (INCOSE) and/or Certified Software Development Professional (CSDP) and in good standing with the Institute of Electrical and Electronics Engineers (IEEE) Computer Society

Senior Accountant

At least Ten years of experience in professional Accounting/Auditing

At least Ten years of experience in Federal Government and Credit Program Accounting

Certified Public Accountant (CPA) and/or Certified Information Systems Auditor (CISA) and in good standing with the AICPA and applicable state boards.

PAST PERFORMANCE

The offeror shall submit the following information/documents:

A completed chart providing the information required by the Past Performance Information chart in Attachment C. The chart shall reflect all relevant past performance performed in the three year period immediately preceding submission of the proposal and all work currently being performed. If the offeror has more than 5 relevant past performance references, then the offeror shall provide the most recent 5 references. As an attachment to the chart, the offeror shall provide a narrative describing the past performance references that reflect the most relevance to the services being obtained under the contract to be awarded. The narrative shall clearly establish the relevancy of the past performance to the current requirements. (Narratives shall not exceed 1 page per reference.

If the offeror is proposing to subcontract (or use joint ventures/ partners, or other entities other than the prime contractor to perform) more than 20% of the contract value, the offeror shall submit a separate chart and narrative described for past performance above, for the proposed subcontractor(s).

The contractor shall provide the survey contained in Attachment D to each past performance reference in sufficient time for the reference to complete and submit the survey directly to the HUD Contracting Officer prior to the date and time for submission of proposals. Offerors are not required to submit surveys for references where past performance is available in the Past Performance Information Retrieval System.

L.13. Part II - BUSINESS PROPOSAL.

1. The Offeror shall complete the Representations and Certifications provided in Section K of this solicitation and include them in this Part II.

2. The Offeror must submit the cover page (Section A) of this Solicitation [Standard Form (SF) 1449 [Solicitation/Contract/Order for Commercial Items]. Block 23 and 24 does not have to be completed. However, an authorized person on behalf of the Offeror is still required to sign the Standard Form (SF) 1449 at time of submission.

3. The Offeror shall use Attachment B Pricing Sheet templates for the submission of their pricing proposals. (Please submit a workable excel spreadsheet). The attached Attachment B Pricing Sheet will take takes precedent for all proposed pricing.

4. The offer shall provide other than certified cost or pricing data (as defined at 2.101) provided by the offeror in accordance with FAR 15.404-1(2)(vii. This includes information to support the offeror's proposed costs or prices as prescribed in 15.404-1(2) (vii). A cost breakdown of each fixed price line item.

Certified Information Systems Security Professional (CISSP) and in good standing with the International Information Systems Security Certification Consortium (ISC)2

FAR CLAUSE 52.215-20 REQUIREMENTS FOR CERTIFIED COST OR PRICING DATA AND DATA OTHER THAN CERTIFIED COST OR PRICING DATA (Oct 2010)

(a) Submission of certified cost or pricing data is not required.

(b) Provide data described below: Submission of data other than certified cost or pricing data may be submitted in the offeror’s own format but in a workable excel spreadsheet to be included in Attachment B Pricing Sheet Notes and Assumptions TAB 8. The offeror shall provide a separate cost breakdown of each Contract Line items (CLIN’s) that is identified in the Section J, Attachment B Pricing Sheet in the solicitation. This shall include the labor categories, number of hours, labor rates, percentage of effort, labor mix and any other costs that may apply to the total cost of each contract line item.

L.14. PRICE

Offerors shall submit prices that are consistent with the requirements set forth in the Performance Work Statement and in the format requested in Section J Attachment B Pricing Sheet of this solicitation.

If the offeror proposes annual cost of living increases, the offeror must support the proposed increases with historical and relevant market index information.

SECTION M EVALUATION FACTORS FOR AWARD

M.1. GENERAL INFORMATION

(a) The Government may award a contract without discussions with offeror's in accordance with FAR 52.215-1.

(b) The Government intends to evaluate offeror's in accordance with Section M of this RFP and the intent to make a single contract award to the responsible offeror(s) whose proposal represents the best value to the U.S. Government.

(c) The submitted technical information will be evaluated by a technical evaluation panel using the technical criteria shown below. When evaluating the competing offerors, the Government will consider the written information provided by the offerors, and any other information obtained by the Government through its own research.

(d) Ensuring line item prices are not unbalanced.

(e) The total evaluated price will include all option periods, including the value of the 6-month extension if the Option to Extend Services clause at FAR 52-216-8 is included in the solicitation.

(f) Any required travel by the Contractor will be at the direction of the Government and will be reimbursed at cost in accordance with the Federal Travel Regulation.

(g) The government has established a NOT TO EXCEED value of $84,500.00 for travel. All offers will bid that amount for CLIN 0005.

M.3. BEST VALUE AWARD

The government will use a best value tradeoff process; thus the Government may award to other than the lowest priced offeror, or other than the offeror with the highest rated non-cost/price proposal. Each offeror’s total evaluated price will be traded off against the offeror’s technical (non-price) portion of the proposal, to determine the overall best value to the Government, if needed. The best value is represented by the most advantageous offer, price and non-price factors considered.

Evaluation factors are listed in descending order of importance. All evaluation factors other than cost or price, when combined, are significantly more important than cost or price However, as the offerors become more equal in non-price merit, the importance of price to the evaluation decision will increase. The Government shall make award to the offer that represents the overall best value to the Government.

M.3. BEST VALUE AWARD

M.4.52.212-2 EVALUATION—COMMERCIAL ITEMS (JAN 1999)

(a) The Government will award a contract resulting from this solicitation to the responsible offer whose offer conforming to the solicitation will be most advantageous to the Government, price and other factors considered. The following non cost factors shall be used to evaluate offers:

M.4.52.212-2 EVALUATION—COMMERCIAL ITEMS (JAN 1999)

Factor 1 Technical Understanding/Approach

The government will evaluate the following regarding the proposed Technical Understanding/Approach:

How well the proposal demonstrates logical and feasible methods for meeting the requirements described in Performance Work Statement Tasks 3,4,5,11,14 and 16.

How well the project schedule demonstrates:

a clear understanding of the required operations and HUD requirements; and realistic timeframes for performing the PWS tasks and associated deliverables identified in the Instructions to Offerors Section L.

If the proposal includes subcontractors, how well the proposed approach delineates the technical responsibilities between the prime and the subcontractor(s).

Factor 2 Management Plan The government will evaluate the following regarding the proposed Management Plan:

How well the proposal supports the achievement of the Government’s objectives and requirements outlined in the solicitation regarding:

a. Key Personnel and responsibilities;

b. successful communication and coordination between the contractor and the government personnel/roles;

c. successful communication and coordination between the contractor and the government personnel/roles;

d. Preliminary Quality Control Plan, The proposed Preliminary Quality Control Plan addresses the requirements listed in the Instructions to Offerors to ensure that all tasks are completed in accordance with the performance standards listed in the solicitation.

Factor 3 Key Personnel The government will evaluate the following regarding the proposed Key Personnel:

How well the resumes demonstrate relevant prior experience, qualifications, education, and certification, if applicable, for personnel proposed to fill the key positions identified in the solicitation;

How well the number of key personnel identified and/or the amount of time each will commit to the effort, reflect a clear understanding of the requirement described in the Performance Work Statement; and

Whether letters of commitment were submitted and are acceptable.

Factor 4 Past Performances In evaluating Past Performance, HUD will address four components – recency, relevancy, quality, and sufficiency. This factor’s primary emphasis is to assess the past performance of the proposed prime contractor (or in the case of joint ventures or some other teaming arrangement, the primary member of the team). However, if significant subcontracting/use of other teaming arrangements is anticipated, the past performance history of the proposed subcontractors/other team members must also be evaluated.

All references will be first assessed for recency and HUD will consider only references performed within the three years immediately prior to submission of the proposal;

Of those determined to be recent, HUD will assess the degree of similarity in scope, value and magnitude the past performance efforts submitted have to the solicitation requirements to determine relevancy;

HUD will then assess relevant past performance efforts for quality;

HUD’s overall assessment will be based upon sufficiency of high quality past performance and risk of nonperformance.

The final rating under this factor will encompass the totality of the information provided, including completeness, relevancy, and the depth, breadth, and quality of only relevant past performance for the proposed prime contractor and proposed subcontractor/team members. The final rating will range from Excellent (High Confidence) to Unacceptable (Low Confidence). Offerors that have addressed the factor and have no relevant past performance history by the prime and any subcontractors/team members will be rated as Neutral (Unknown Confidence). Offerors that fail to address the factor will be determined to have not complied with the solicitation requirements and will receive the lowest possible rating.

HUD is not restricted to evaluating the information provided by the offeror or the surveys provided by references and may utilize information obtained from any source. HUD will obtain additional information from the Government’s Past Performance Information Retrieval System (PPIRS), if available.

M.5. EVALUATION OF OPTIONS

The government will evaluate the reasonableness of proposed price for the option periods by assessing the acceptability of the offeror’s methodology used in developing the price estimates. For the price to be reasonable in its nature and amount, it should not exceed that which would be incurred by a prudent person in the conduct of a competitive business. Reasonableness takes into account the context of a given source selection, including current market conditions and other factors that affect the ability of an offeror to perform the contract requirements.

Attachment B Pricing Sheet

M.5. EVALUATION OF OPTIONS

Award

•Intend on awarding without discussion …

-Award based on initial proposals can happen if the Government receives an offer that conforms with the solicitation and provides the greatest overall benefit to the Government, all factors considered

Don't assume you can improve your position during discussions, there may not be Discussions.

However, the Government Reserves the Right to Conduct Discussions

Questions and Answers Session

Break

TURN IN ALL WRITTEN QUESTIONS

Technical Panel Members

Karin Hill William Fuentevilla Gabrielle Scandone Kathleen Malone

HECM Program Overview

Karin Hill Office of Single Family Program Development

Congress passed, and President Reagan signed, a reverse mortgage pilot program act in 1988 authorizing FHA to insure HECMs Program provides access to home equity to mortgagors 62 and older with objective of enabling seniors to age in place Distribution of home equity supplements seniors income and provides access to funds for emergencies, health care, home maintenance High Profile Product available to a vulnerable population with high headline risk Subject to intense scrutiny from Congress, the White House and senior advocacy groups Impact of financial and housing crises – increased risk to the FHA Mutual Mortgage Insurance fund resulting in increased defaults/foreclosures, Tax and Insurance defaults Beginning in 2009, FHA initiated a series of changes to the program to address risk issues, return program to original intent and ensure sustainability of the program for HECM borrowers and FHA.

FHA Home Equity Conversion Mortgage Program

FR Notice R-5735-N-01: Financial Assessment Eliminated Standard and Saver product structure Reduced Principle Limit Factors New MIP Structure Based on Draw Percentage September 2013 Limits on Max Disbursement During First 12-Month Period New Single Disbursement Lump Sum Payment September 2013 (effective for FHA Case Numbers on or after 9/30/13) Principle Limit Factors Reduced twice by 10-15% Updated Housing Counselor Tools & Protocols HECM Saver Introduced Lower Fees with Lower PLF Eliminated HECM Standard Fixed Rate Option Reverse Mortgage Stabilization Act Enacted 2009-2010 April 2013 August 2013 3 HECM Mortgagee Letters September 2013 September 2013 (Update Policy/Guide in response to FR comments; Fall 2014) Introduced New Financial Assessment requirement Introduced New Property Charge Payment Requirements Introduced Detailed HECM Financial Assessment Guide Non- Borrowing Spouse Mortgagee Letter Limit on Insurability of Fixed Interest Rate Products Under the HECM Program Prohibition on Misleading or Deceptive Advertising Program Descriptions New Principal Limit Factors June 18, 2014 (effective for FHA Case Numbers on or after 6/25/14) June 18, 2014 (effective immediately) June 27, 2014 (effective for FHA Case Numbers on or after 8/4/14) Key Changes to the HECM Program:

A Timeline April 2014 (effective for FHA Case Numbers on or after 8/4/14)

Volume:

873,929 HECM insurance endorsements to date (Oct 1, 1989 through May 31, 2014) - $200.0 Billion

Current composition of portfolio:

224,897 loans have terminated - $47.1 Billion 627,756 loans are actively insured - $148.7 Billion 21,704 loans are assigned to HUD as active notes in inventory - $4.2 Billion Data as of May 31, 2014 HECM Portfolio Snapshot:

Volume and Composition

HECM Portfolio Snapshot: Endorsement Volume

Endorsements by Cohort Year Data as of May 31, 2014

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0.14299999999999999 0.36799999999999999 0.94899999999999995 1.802 3.125 3.9319999999999999 3.4540000000000002 5.0270000000000001 7.7039999999999997 7.8109999999999999 6.6139999999999999 7.7510000000000003 13.023999999999999 18.088000000000001 37.777999999999999 43.040999999999997 76.091999999999999 107.41800000000001 112.048 114.414 79.058000000000007 73.108999999999995 54.683 59.923000000000002 36.573 Ehdorsements (Thousands)

Data as of May 31, 2014 FY 2009 – FY 2014 Year-to-Date HECM Interest Rate Type

Variable

Percentage (Of FY Endorsements)

HECM Portfolio Snapshot Average Age of HECM Borrower

Data as of May 31, 2014

Average Age of HECM Borrower borrower_age_orig 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 76.077464788732399 76.119565217391298 75.977824709609294 75.02443087173792 74.508490868311441 75.274300254452925 74.091306884480744 75.150616792678079 75.005453837163998 74.561715749039692 75.412912004838219 75.011483870967737 74.617446056976121 73.789735648711428 73.746312918685632 73.270019054700938 73.233979076858375 73.030646918085594 72.550380194202489 72.40772108308424 72.35577677148423 71.688642985131793 71.435985589671375 71.140647163860294 71.343942252481341 Fiscal Year

Overview

Business Service Provider (BSP) Operations

William Fuentevilla Office of the FHA Comptroller

Scope in a Nutshell Maintaining FHA’s Insured HECM Portfolio Loan Setup and Initial MIP Case Management and Premiums Claims and Assignment Accounting Servicing HECM-Assigned Notes What is Different FHA Claims FHA Servicing for HECM-Assigned Note Federal Credit Accounting

Overview: HECM BSP Requirements

As of December 2013, there were approximately 2,600 authorized users with 130 distinct lender, servicer, and investor groups.

HECM users fall into the following categories:

Servicers Originators Investors HUD Single Family Insurance Operations staff HUD Financial Operations Center (Claims) staff HUD Office of Single Family Housing staff HUD Office of Housing Counseling staff HUD National Servicing Center (NSC) staff HUD Loan Servicing Contractor staff Home Ownership Center staff HUD Office of Evaluation (Reporting) staff HUD Accounting staff HUD-approved contractors

User Overview

FHA Mortgagees and the Number of HECM Loans they Service Data as of July 7, 2014

Single Family Housing Office of Housing HECM Operating Organizations Finance & Budget/FHA Comptroller Risk Management SF Program Development SF Asset Management National Servicing Center Asset Management & Disposition Office of Financial Services Office of Financial Analysis & Reporting Systems & Technology General Ledger Division Insurance Operations Division Financial Operations Center Office of Evaluation

Highlight of Service Boundaries Single Family Homeownership Centers and CHUMS Accounting and FHASL National Servicing Center Housing Risk Management and the SF Data Warehouse Single Family Asset Management and SAMS Independent Auditing and Quality Management

Overview: HECM BSP Requirements

Interfaces with HUD/FHA/GNMA, Lenders, and Servicers

Gabrielle Scandone

HECM BSP Operations must interface with these automated systems (and subsequent IT systems/platforms):

Computerized Homes Underwriting Management System (CHUMS) Single Family Insurance System (SFIS) Single Family Premiums Collection Subsystem – Upfront (SFPCS-U) Single Family Premiums Collection Subsystem – Periodic (SFPCS-P) Single Family Claims Subsystem (SFCS) Single Family Acquired Assets Management System (SAMS) FHA Subsidiary Ledger System (FHASL) Single Family Data Warehouse (SFDW) PAY.GOV (US Department of Treasury) IBM Mainframe’s Distributed Enterprise Print Controller (DEPCON) FHA Connection (FHAC) Institution Master File (IMF)/Lender Electronic Assessment Portal (LEAP) Reporting and Feedback System (GNMA RFS)

HUD.GOV

Interfaces

HECM BSP Operations must also interface with:

HUD Users FHA-approved HECM lenders (originators, servicers, investors) GNMA and other Government-Sponsored Entities HUD-approved contractors HUD’s National Servicing Center Loan Servicing Contractor (NSC LSC) Third-Party providers and vendors (tax monitoring-FERETS, releases-REKON, bulk imaging, NSC LSC banking institutions-NACHA), death and bankruptcy-BANKO)

Requirements to Note:

Must be compatible with HUD’s IT systems, IT infrastructure, IT protocols, and all Federal IT security policies and regulations (NIST, FISMA, FedRAMP, Continuous Monitoring, etc.)

Must meet Federal Government’s Single Sign On requirements Must maintain compatibility with future HUD operating environment platforms as the result of technology upgrade or migration by HUD Must maintain interfaces with subsequent HUD user systems HECM data integrity, accuracy, and timeliness are paramount in order to support FHA’s actuarial modeling; Congressional reporting, and transparency to the American public

Requirements to Note (continued):

As Official System of Record Post Endorsement, must maintain audit trail of all post-endorsement transactions and reconcile monthly with CHUMS (official HECM system of record up to endorsement) Must provide automated reconciliation support Must provide an Online Survey Tool Must be able to handle direct (online data entry) and/or electronic data input via bulk file transfers and uploads (B2G)

Reporting

The Business Service Provider must:

Make HECM data readily accessible with minimal, if any, reliance on BSP to create/generate/grant additional system access Provide database schema, table and field descriptions, data dictionary Provide users with the ability to:

Export data from the system on demand Specify data fields, criteria, filters, and date ranges Specify the format for the data (dashboard, Excel, fixed width, etc.)

Easy access to HECM data

Service Management:

Governance and Relationships

Kathleen Malone

Service Management: Governance and Relationships

Help Desk Change Management Quality Management Policy and Regulatory Compliance image2.png image3.emf image4.emf image5.emf image6.emf

Microsoft_Excel_Worksheet1.xlsx Summary of Total Cost

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HECM Business Service Provider

Solicitation Number DU100R-14-R-0004

Firm Fixed Price/Fixed Unit Price

Total Cost

Base Year $ 84,500.0

Option Year One $ - 0

Option Year Two $ - 0

Option Year Three $ - 0

Option Year Four $ - 0

Total $ 84,500.0

Base Period

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HECM Business Service Provider

Firm Fixed Price/Fixed Unit Price

Period of Performance - Base Period -

Clin's SOW Reference Qty Units of issue Unit Price Total Price

0001 Start Up- Transition In - Deliver via web-based business services to manage HECM Portfolio 9 MO

0002 Maintain HECM Business Services 3 MO

0003 Help Desk Services 3 MO

0004 Train HECM Business Services User per training session 25 EA

0005 Travel for Training Not to Exceed $ 84,500

0006 Training Material and Books 9 MO

0007 Webinar Training 9 MO

Totals $ - 0 $ 84,500

&"Arial Narrow,Bold"&14PRICING SHEET

&F &A &P of &N

Option Period 1

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HECM Business Service Provider

Firm Fixed Price/Fixed Unit Price

Period of Performance - Option Period 1

Clin's SOW Reference Qty Units of issue Unit Price Total Price

1002 Maintain HECM Business Services 12 MO

1003 Help Desk Services 12 MO

1004 Web-enabled or Video Conferencing training and update books and manuals. 12 MO

Totals $ - 0 $ - 0

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Option Period 2

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HECM Business Service Provider

Firm Fixed Price/Fixed Unit Price

Period of Performance - Option Period 2

Clin's SOW Reference Qty Units of issue Unit Price Total Price

2002 Maintain HECM Business Services 12 MO

2003 Help Desk Services 12 MO

2004 Web-enabled or Video Conferencing training and update books and manuals. 12 MO

Totals $ - 0 $ - 0

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Option Period 3

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HECM Business Service Provider

Firm Fixed Price/Fixed Unit Price

Period of Performance - Option Period 3

Clin's SOW Reference Qty Units of issue Unit Price Total Price

3002 Maintain HECM Business Services 12 MO

3003 Help Desk Services 12 MO

3004 Web-enabled or Video Conferencing training and update books and manuals. 12 MO

Totals $ - 0 $ - 0

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Option Year 4

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HECM Business Service Provider

Firm Fixed Price/Fixed Unit Price

Period of Performance -Option Period 4

Clin's SOW Reference Qty Units of issue Unit Price Total Price

4002 Maintain HECM Business Services 12 MO

4003 Help Desk Services 12 MO

4004 Web-enabled or Video Conferencing training and update books and manuals. 12 MO

4005 Trainsition Out to include delivery of Government furnished Information. 1 LOT

Totals $ - 0 $ - 0

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Optional Line Item

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HECM Business Service Provider

Firm Fixed Price/Fixed Unit Price

Optional Line Item shall be price seperately ( Not to be included in the overall price).

Clin's SOW Reference Qty Units of issue Unit Price Total Price

5006 Optional Line Item to purchase the system/source code used to perform the contract. 1 LOT

Totals $ - 0 $ - 0

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Notes Assumptions

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HECM Business Service Provider

Notes and Assumptions

The Contractor shall use this worksheet to clearly list all pricing notes and assumptions used in the derivation of its pricing proposal.

Clin's

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