Loan_Underwriting_Services_PWS_FBO.doc

Performance Work Statement (PWS)

Loan Underwriting Services 4Vision Statement

1 General Information

1.1 Introduction

1.2 Background

1.3 Constraints

1.4 Description of Services

1.5 Non-Personal Services

1.6 Period of Performance

1.7 Place of Performance

1.8 Hours of Operation

1.9 Special Qualifications

1.10 Post Award/Kickoff Conference

1.11 Status Meetings

1.12 Contractor Travel

1.13 Transition In

1.14 Transition Out

2 Definitions and Acronyms

2.1 Definitions

2.2 Acronyms

3 Government-Furnished Property and Services

3.1 Government Services

3.2 Facilities

3.3 Equipment

3.4 Materials

3.5 Quality Assurance (QA)

4 Contractor-Furnished Items and Services

4.1 Facilities

4.2 Equipment

4.3 Material

4.4 Contractor Responsibilities

4.5 Contractor Personnel

4.6 Identification of Contractor Employees

4.7 Quality Control

4.7.1 Quality Control Plan

5 Specific Tasks/Scope of Work

5.1 Project Management

5.2 Loan Insurance Underwriting

5.3 Loan Closing

5.4 Monitoring after Loan Closing

5.5 Transition Support Plan

5.6 Travel

6 Deliverables and Milestones

6.1 Quality Control Plan

6.2 Acceptance Criteria

7 Performance Requirements Summary 8 Related Documents

Performance Work Statement (PWS) Loan Underwriting Services Vision Statement

The U.S. Department of Housing and Urban Development (HUD) - Office of Multifamily Housing and the Office of Healthcare Programs is seeking a contractor to provide loan underwriting, closing support and management services for Housing Programs. These services are mission critical and considered to be viable to both programs, the Office of Multifamily Housing Programs (OMHP) and Office of Residential Care Facilities (ORCF). These loan underwriting services are required to support FHA mortgage insurance processing on an as needed basis. Therefore, each loan application may not require all due diligence functions identified in the PWS. The loan applications being processed are ongoing current requests and backlog files that are susceptible to causing unacceptable delays in processing applications for FHA mortgage insurance within established timeframes.

1 General Information

1.1 Introduction

The Office of Multifamily Housing Programs (OMHP) and Office of Residential Care Facilities (ORCF) seeks a Contractor to provide loan underwriting, closing support and management services for loan applications submitted under sections 223(f) and 223 (a)(7) by FHA approved Lenders to a HUD Office for FHA mortgage insurance. The objective is to decrease the backlog of applications currently in the multifamily queue system and decrease the processing time of each application to a maximum of thirty (30) calendar days from origination to approval.

Office Multifamily Housing Programs

This program is responsible for the overall management, development, direction and administration of HUD's Multifamily Housing Programs. Congress created the Federal Housing Administration (FHA) in 1934. FHA became a part of the Department of Housing and Urban Development's (HUD) Office of Housing in 1965. FHA mortgage insurance is not a subsidy or direct loan, but insurance in the event the borrower defaults on the loan. FHAs OMHP provides insurance to approved lenders to facilitate the construction, rehabilitation, repair, refinancing, and purchase of multifamily housing projects such as apartments and cooperatives. The Section 207/223(f) program insures loans for the purchase or refinancing of existing rental properties financed with conventional or FHA loans. The Section 207/223(a)(7) program offers a streamlined refinancing option for multifamily properties already insured by FHA, and can reduce debt service and free up operating income. A lender processes and underwrites the loan and submits the firm commitment loan application package to the local HUD Office in one of the five regions: Northeast, Northwest, Southwest or Midwest and the West.

HUD's FHA program Section 232 program is authorized by Section 232 of the National Housing Act (12 U.S.C. 1715w). It is administered by the Office of Residential Care Facilities (ORCF) to insure mortgage loans to facilitate the construction and substantial rehabilitation of nursing homes, intermediate care facilities, board and care homes, and assisted-living facilities. Section 232/223(f) and the 232/223(a)(7) allows for the purchase or refinancing with or without repairs of existing projects not requiring substantial rehabilitation. These programs allow for long-term, fixed rate financing (up to 40 years) for new and rehabilitated properties and (up to 35 years) for existing properties without rehabilitation that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities.

1.2 Background

In recent years, FHA has seen an increase in volume for their FHA insurance products because of the decrease in available financial credit extended by commercial banks and other financial institutions. The success of these programs has increased their use creating a backlog of applications nationwide. This backlog has resulted in unacceptable delays and extended the processing time. HUD has developed standardized statement of work which are reference tools in the form of checklists and punch lists for processing and underwriting Section 223(a)(7) and 223(f) applications. These checklists and punch list are used to assemble the loan application package and are available on local SharePoint sites at HUD's Office of Multifamily Housing Programs (OMHP). To streamline OMHP's application process, HUD developed Multifamily Accelerated Processing (MAP), in which Lenders are delegated processing, due diligence and underwriting authority to decrease the processing time of each application from origination to approval. All loan documents will be posted to the local MF HUD SharePoint site by the Contractor and reviewed by the POC in the local HUD office.

The MAP Guide is on OMHP's website and provides mortgage insurance program descriptions, borrower and Lender eligibility requirements, application requirements, underwriting standards for all technical disciplines and construction loan administration requirements. The first step is for a borrower to contact an approved Multifamily MAP Lender and request a concept meeting with the local MF HUD office with geographical jurisdiction over the property.

Office of Residential Care Facilities (ORCF)

To streamline ORCF's application process, HUD developed a LEAN process in 2008 for Section 232 applications. HUD's new LEAN process employs a standardized work product and process, Exhibits A-G, to obtain a consistent, timely result. ORCF's Standardized Punch Lists Exhibits will be posted to SharePoint site by ORCF contract staff and evaluated by ORCFs Workload Managers (GTM) for approval and submission to ORCFs Loan Committee (LC) for consideration of authorization of the Firm commitment. ORFC often begins its legal review immediately when the Firm Application is submitted to cut down the time between Firm Commitment issuance and closing. ORCF polices are established in the LEAN Handbook. HUD often begins its legal review when the Firm Commitment application is submitted to reduce the time between Firm Commitment issuance and loan closing.

Whichever process is used, applications for mortgage insurance are assembled and underwritten by FHA-Approved Lenders before being submitted to HUD for processing of the Firm Commitment.

1.3 Constraints

The Contractor shall adhere to the rules, regulations, laws, standards and conventions identified by HUD as outlined in Section 207 of the National Housing Act, as well as other within the federal Government. The Contractor is required by law to abide by all applicable regulations, publications, manuals, guidebooks, handbooks and policies, including administrative procedures to adequately perform loan underwriting services for HUDs 223(f) and 223(a)(7) FHA insurance-backed loans.

The Contractor shall strictly adhere to and complete HUDs punch list and/or checklist documents for processing, underwriting and closing the assigned insured loan applications. The punch list shall assist the Contractor with addressing items of concern during the processing, underwriting and closing of the insured loan applications. The OMHP's POC, ORCF's Workload Manager, GTM and other Government employees will answer questions the Contractor may have regarding current Mortgagee Letters.

The Contractor shall obtain pay.gov payment fee (e.g. application and closing) forms from the Lender for all the required programs fees for the mortgage insured loan. The Lender will utilize the online payment system to pay all Multifamily and Healthcare Programs Fees at pay.gov: https://www.pay.gov/public/form/start/67950760.

The Contractor shall abide by the published Mortgagee Letters and Handbooks which may be accessed through the website at:

https://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips The Contractor shall abide by HUD regulations as outlined in 24 CFR Part 207 of the National Housing Act which may be accessed through the website at:

http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&tpl=/ecfrbrowse/Title24/24tab_02.tpl

The Contractor shall abide by the MAP Guide (guidebook) as modified by Housing Notices and Mortgagee Letters which may be accessed through the website at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/guidebooks/hsg-GB4430 For Section 232 projects, the contractor shall abide by polices established in the LEAN Handbook.

The Contractor shall obtain pay.gov payment fee (e.g. application and closing) forms from the Lender for all the required programs fees for the mortgage insured loan.

The Lender will utilize the online payment system to pay all Multifamily and Healthcare Programs Fees at pay.gov: https://www.pay.gov/public/form/start/67950760.

Personnel employed by financial institutions that refer 3rd party loan processing, that results in loan underwriting services for this requirement, are prohibited from providing loan underwriting services, due to conflict of interest issues.

1.4 Description of Services

HUD seeks a Contractor to provide project management support, loan insurance underwriting, loan application closing support and post-closing support services for FHA loans under section 223(f) and 223 (a)(7) within the established time frames. These loan underwriting services are required to support FHA mortgage insurance processing on an as needed basis. Therefore, each loan application may not require all due diligence functions identified in the PWS.

Detailed descriptions of specific tasks are provided in Section 5.

1.5 Non-Personal Services

This is a non-personal services contract to provide underwriting and closing support services for The Office of Multifamily Production (OMP) and Office of Residential Care Facilities (ORCF) for FHA insured mortgages under Sections 223(f) and 223 (a)(7) and any other loan processing that may be deemed necessary by HUD for this contract as directed by Office of Multifamily Housing and the Office Healthcare Programs or successor.

The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees.

It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are of the nature of personal services, or give the perception of personal services. It the Contractor feels any action constitutes, or are perceived to constitute personal services, it shall be the Contractors responsibility to notify the Contracting Officer immediately. These services shall not be used to perform work of a policy, decision making or management nature, i.e. inherently Government functions. All decisions relative to programs supported by the Contactor shall be the sole responsibility of the Government.

1.6 Period of Performance

The period of performance shall be for one base period of 12 months and four 12-month option period, if exercised.

1.7 Place of Performance

The services to be performed under this contract shall be performed at the contractor’s facility.

The Contractor is required to have access to HUD's secured IT systems. The Contractor shall receive new loan applications and return application documents and files electronically using SharePoint or when necessary CD via express courier with the ORCF's Workload Manager or the assigned Multifamily (MF) HUD POC for each Regional Center or Regional Satellite Office, Headquarters or as directed by the HUD Representative, GTR or COR.

The assigned MF HUD POC for each Regional Center, Regional Satellite Office or Headquarters staff will notify and coordinate assigned loans to the Contractor with the National Work Share Coordinator. MF has a five-region field structure. Each of the five regions includes one Regional Center and one or two Regional Satellite Offices. The regions are as follows:

1. Southwest Region: Fort Worth (Regional Center) and Kansas City (Regional Satellite Office); (Field Offices: Albuquerque, Des Moines, Houston, Little Rock, New Orleans, Oklahoma City, Omaha, St. Louis, San Antonio, Shreveport, Tulsa);

2. Midwest Region: Chicago (Regional Center), Detroit, and Minneapolis (Regional Satellite Offices); (Field Offices: Cleveland, Columbus, Indianapolis, Milwaukee);

3. Southeast Region: Atlanta (Regional Center) and Jacksonville (Regional Satellite Office); (Field Offices: Birmingham, Caribbean, Columbia, Greensboro, Jackson, Knoxville, Louisville, Miami, Nashville);

4. Northeast Region: New York (Regional Center) Boston, and Baltimore (Regional Satellite Offices); (Field Offices: Buffalo, Charleston, Hartford, Manchester, Newark, Philadelphia, Pittsburgh, Providence, Richmond, Washington); and

5. West Region: San Francisco (Regional Center) and Denver (Regional Satellite Office); (Field Offices: Honolulu, Las Vegas, Los Angeles, Phoenix).

The signed and executed original and one (1) copy of the approved loan documents will be delivered by express courier to the HUD Office as directed by the MF HUD POC, ORCF Workload Manager, GTR or COR.

1.8 Hours of Operation

The government will be providing loan underwriting files and requiring loan underwriting services during normal work hours between 9:00 am – 5:00 pm, Monday through Friday. The Contractor shall always maintain an adequate workforce for the uninterrupted performance of all tasks defined within the Contract when the Government facility is not closed. Government agencies will not be available during scheduled holidays, inclement weather, weekends or after duty hours.

1.9 Special Qualifications

The Contractor shall assign key personnel with FHA insured loan experience, have excellent written and oral communication skills, strong organizational skills, ability to coordinate multiple projects, complex activities and the ability to prioritize conflicting demands and deadlines.

1.10 Post Award/Kickoff Conference

The Contractor and key personnel shall attend any post award conference convened by the contracting activity or contract administration office in accordance with FAR 42.5. The Contracting Officer, Government Technical Representative (GTR) and other Government personnel, as appropriate may meet periodically with the Contractor to also review Contractor's performance, requirement status, etc.

1.11 Status Meetings

At these meetings, the Contracting Officer will apprise the Contractor of how the Government views the Contractor's performance or progress of the requirement. The Contractor shall apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the Government. Post award conference and subsequent meetings may be held via teleconference.

1.12 Contractor Travel

The Contractor shall be required to travel to HUD Headquarters for an initial two to four-day Multifamily Accelerated Processing (MAP) training period. The training shall be conducted within thirty (30) calendar days of the contract award. Training will be arranged by OMHP's and shall be for all Contractor Underwriters, and other key personnel in Headquarters, Washington DC on an as needed, and in performance of this contract. Prior to travel (each planned trip) the Contractor shall coordinate with and receive Government authorization from the GTR for all travel. The Contractor shall be responsible for obtaining all passenger transportation, lodging and subsistence. Reimbursement of CONUS travel costs will be in accordance with the Federal Travel Regulation in accordance with FAR 31.205-46. The Contractor shall travel using the lower cost mode transportation commensurate with the mission requirements. When necessary to use air travel, the Contractor shall use the tourist class, economy class or similar lodging accommodations to the extent they are available and commensurate with the mission requirements. HUD will not reimburse Contractors local travel. Local travel is defined as travel within 50 miles of Washington, DC. Note: The Joint Travel Regulation (JTR) applies to OCONUS travel.

1.13 Transition In

The Contractor shall have personnel on board, at no additional cost of the Government thirty (30) calendar day prior to the effective date of this contract to allow for the PIV processing of key personnel. The effective date of this contract is thirty (30) days after the award date to allow for the PIV process and security clearance for key personnel.

The Contractor shall, upon the Contracting Officer's written notice, furnish Transition-In services as required. If required, the Contractor shall develop and provide a written procedural manual to provide to the successor Contractor on or before the ninety (90) prior to the expiration of the contract.

1.14 Transition Out

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

2 Definitions and Acronyms

2.1 Definitions

Access: the ability to obtain, view, read, modify, delete, and/or otherwise make use of information resources. Checklist or Punch list: Document(s) used for reviewing and assuring completion of HUDs processing, underwriting and closing criteria and requirements have been satisfied.

Calendar Day: Any day of the calendar week.

Contractor: A supplier or vendor awarded a contract to provide specific supplies or service to the Government. The term used in this contract refers to the prime. Contracting Officer (CO) A person with authority to enter into, administer, and/or terminate contracts and make related determinations and findings on behalf of the Government. Note: the only individual who can legally bind the Government.

Contractor Employee: an employee of the prime contractor or of any subcontractor, affiliate, partner, joint venture, or team members with which the contractor is associated. It also includes consultants engaged by any of those entities.

Defective Service: A service output that does not meet the standard of performance associated with the Performance Work Statement.

Deliverable: Anything that can be physically delivered, but may include non-manufactured things such as meeting minutes or reports.

Government Furnished Property (GFP): Government-furnished property means property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

Government Technical Representative (GTR): An employee of the U.S. Government appointed by the Contracting Officer to perform contract administration activities in regard to technical issues. This individual has authority to provide technical direction to the Contractor as long as direction is within the scope of the contract, does not constitute a change and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract.

Key Personnel: Contractor personnel that are evaluated in a source selection process and that may be required to be used in the performance of a contract by the Key Personnel clause. When key personnel are used as an evaluation factor in best value procurement, offerors can be rejected if they do not have firm commitments from the persons that are listed in the proposal.

Lender Quality and Monitoring Division: Multifamily's Office that is responsible for assuring the approved Multifamily Lenders underwrite and close the insured HUD applications within HUDs published guidelines, standards and requirements. They review the quality of closed loans, poor performing loans, or loans that are currently in default on an ongoing basis. Their monitoring requirements and quality control guidelines are outlined in our 2016 MAP Guide. For ORCFs section 232 programs, the contractor will follow all prescribed LEAN program requirements.

Loan Documents: Any required papers such as but not limited to: HUD forms, templates, letters, applications, punch lists, checklists, supporting documentation and third party reports required to complete the underwriting process for the FHA loan for approval or rejection.

Mission-Critical system: means an information technology or telecommunications system used or operated by HUD or by a HUD contractor, or organization on behalf of HUD, that processes any information, the loss, misuse, disclosure, or unauthorized access to, or modification of which would have a debilitating impact on the mission of the agency.

Pay.gov: An online payment system for Lenders to pay for all Multifamily and Healthcare mortgage insurance program fees.

Performance Work Statement (PWS): A statement of work for performance based acquisitions that describe the required results in clear, specific and objective terms with measurable outcomes.

Personal Identity Verification (PIV) Cards: Allows key personnel access to Multifamily FHA internal software systems. The Federal Government-issued identification credential (i.e., identification badge).

Physical Security: Actions that prevent the loss or damage of Government property.

Performance Standard: The Contractor's performance level required by the Government.

Performance Work Statement (PWS): A statement of work for performance based acquisitions that describe the required results in clear, specific and objective terms with measurable outcomes.

Performance Requirements Summary (PRS): A listing of the performance requirements under the contract that are to be evaluated by the Government on a regular basis, performance indicators for these requirements, performance standards for these requirement and surveillance methods to be used to determine if performance standards are met.

Quality Assurance (QA): Policies and procedures adopted by the Government to ensure that supplies and services acquired under Government contracts conform to the contracts quality requirements.

Quality Assurance Surveillance Plan (QASP): A plan describing how the agency will survey, observe, test, sample, evaluate and document the contractor’s performance in meeting critical performance standards identified in the contract.

Quality Control (QC): All necessary measures taken by the Contractor to assure that the quality of an end product of service shall meet contract requirements.

Sensitive Information: any information of which the loss, misuse, or unauthorized access to, or modification of, could adversely affect the national interest, the conduct of federal programs, or the privacy to which individuals are entitled under section 552a of title 5, United States Code (the Privacy Act), but which has not been specifically authorized under criteria established by an Executive Order or an Act of Congress to be kept secret in the interest of national defense or foreign policy.

Service Contract: A contract that directly engages the time and effort of a Contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

Subcontractor: Any person, other than the prime Contractor, who offers to furnish or furnishes any supplies, material, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract, and any person who offers to furnish or furnishes general supplies to the prime contractor or a higher tier subcontractor. The Government does not have privity of contract with a subcontractor.

Work Day: Defined as 8 hours per day the Contractor provides services in accordance with the contract. Every official work day of the week which are days between and including Monday to Friday. This does not include public holidays and weekends.

Work Week: Defined as 40 hours per week, Monday through Friday, unless specified otherwise.

2.2 Acronyms

ACWP Actual Cost of Work Performed APPS Active Partners Performance System, HUDs Multifamily software system for the electronic 2530 Previous Participation Certification Property Submission review approval.

AQL Acceptable Quality Level

CFO or OCFO Office of the Chief Financial Officer of HUD

CFR Code of Federal Regulations

CIO or OCIO Office of the Chief Information Officer of HUD

CO Contracting Officer

COB Close of Business

COR Contracting Officer Representative

CPO Office of the Chief Procurement Officer of HUD

CR Change Request

DACA Days After Contract Award

DAP Development Application System

EST Eastern Standard Time (U.S.)

FHA Federal Housing Administration

GFP Government Furnished Property

GTM Government Technical Monitor

GTR Government Technical Representative

HITS/HUDNET HUD Information Technology Service

HN Housing Notice

Hub/Program Center/Regional Center/Satellite Office Multifamily HUD Offices

HUD U.S. Department of Housing and Urban Development

Hub/PC the HUD or Program Center office

HUDAR HUD Acquisition Regulation

HUDATWORK HUDs Intranet Web Site and related WEB pages.

HUD Web HUDs Intranet Web Site and related WEB pages.

HN Housing Notice

IREMS Integrated Real Estate Management System

IT Information Technology

LAN Local Area Network

LQMD Lender Quality and Monitoring Division

MAP Multifamily Application Processing (Guidebook 4430.G)

MF Multifamily

ML Mortgagee Letter

NHA National Housing Act

OHAP Office of Affordable Housing Preservation

OCPO Office of the Chief Procurement Office

ORCF Office of Residential Care Facilities

PBV Project Based Vouchers (Section 8)

PBRA Project Based Rental Assistance (Section 8)

PCNA Project Manager

PIV Personal Identity Verification

POC Point of Contact or HUD Representative

PL Public Law

PPII Protection of Personally Identifiable Information

QA Quality Assurance

QASP Quality Assurance Surveillance Plan

RAD Rental Assistance Demonstration

S.O.A. Section of the Act

U.S.C. United States Code

3 Government-Furnished Property and Services

The Contractor shall ensure accurate control and accountability of all Government Furnished Property in accordance with terms and conditions of this contract. The Government will furnish, at no cost to the Contractor, the following GFP: (1) FHA 223(f) and 223(a)(7) electronic loan files, (2) Multifamily Accelerated Processing (MAP) Guide training, (3) Access to HUDs DAP, iREMS and APPS software systems for the Contractor to update the loan application status and to review and recommend approval of credit of the applicants and other team members.

3.1 Government Services

The Contractor and other key personnel will meet at HUD Headquarters in Washington, DC for the post award meeting. The purpose of this meeting is to establish a mutual understanding of the contract objectives and scope of work. Participants in this meeting shall include the Contractor, contractor’s key personnel and other government employees. This meeting will be scheduled within thirty (30) calendar days after the contract award. The COR/COTR and other Government employees will answer questions the Contractor may have and provide the Contractor with the location of current HUD regulations such as Housing Notices, Mortgagee Letters and Guidebook pertaining to Multifamily Productions Loan Insurance Programs. The Government will provide a two (2) to four (4) days MAP training class in HUD Headquarters for the Contractor and key personnel employed by the Contractor. The government will also provide database access for all required systems to support loan underwriting services.

3.2 Facilities

None. All work will be performed at the Contractor’s site.

3.3 Equipment

The Government will not provide equipment to the contractor.

3.4 Materials

The OMHP's HUD POC or the ORCF's Workload Manager will independently provide the required materials electronically or via disc of the loan application to the Contractor for processing. HUD will provide punch lists, checklists and Exhibits/or A-G documents to be used in conjunction with processing, underwriting and closing each application and most of URLs to these documents are provided in the Related Documents section of this PWS. The HUD POC or the ORCF Workload Manager will provide the most current processing checklists and punch lists including a list of the documents required for processing and underwriting a Section 223(a)(7) and 223(f) application. OMHP processing checklists are also in the Appendix Section 4.A and 4.B of the MAP Guide. The required closing documents are in the Office of General Counsels closing guide. This closing manual is located on the website at: https://portal.hud.gov/hudportal/documents/huddoc?id=MFClosGd15.pdf. All punch list, checklist materials and loan processing documents will remain the property of the Government. The punch list and checklist materials will be returned to the COR/CO-COR upon request or be returned at the end of the contract period. The Contractor shall only conduct business with HUDs POC in one of the five regions, Headquarters and other designated HUD Representatives. Names of authorized personnel shall be provided to the Contractor by the Government, in writing and updated as necessary throughout the contract period.

All HUD provided information including Lender loan application files as well as Contractor analyses, reports, reviews, information exchange materials, approval documents, and electronic documents remain the property of HUD always.

3.5 Quality Assurance (QA)

The Government shall evaluate the Contractors performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the Contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance and the minimum acceptable quality level.

4 Contractor-Furnished Items and Services

The Contractor shall furnish all the necessary services, qualified personnel, materials, and equipment required to perform the statement of work under this contract that are not listed under Government Furnished Property and Services.

4.1 Facilities

The Contractor shall furnish, all facilities, equipment and supplies required to perform the work under this contract that are not listed under Government Furnished Property and Services. The Contractor shall provide office space, a computer with internet access, a copier and standard office supplies for all key personnel. The Contractor shall provide underwriters and key personnel experienced with processing, underwriting and closing of FHA insured loan products, primarily Section 223(f)and Section 223(a)(7).

4.2 Equipment

The Contractor shall furnish to all key personnel a computer with internet connections, phone, calculator, fax, scanner and copy machine and all necessary equipment for the successful exchange of electronic data and media compatible with the Departments business environment, as specifically related to the requirements of the business environment for information exchange and completion of the Contract as approved by the CO and GTR.

4.3 Material

The Contractor shall be furnished loan documents, training material and/or documents pertaining to the processing, underwriting and closing of each loan application electronically through email, disc or a SharePoint site.

4.4 Contractor Responsibilities

The Contractor shall only conduct business with the assigned MF HUD POC, ORCF Workload Manager and other designated HUD Representatives. Names of authorized personnel shall be provided to the Contractor by the Government, in writing and updated as necessary throughout the contract period.

All HUD provided information including Lender application files as well as Contractor analyses, reports, reviews, information exchange materials, approval documents, and electronic documents remain the property of HUD.

The Contractor shall not disclose any information that a sponsor or Lender shall provide to the Contractor outside of HUD. The Privacy Act remains in full force and effect. All documents and data shall be returned to HUD when requested by HUD in a format required by the COR/CO-COR. This provision shall apply to all document/material and deliverables under this contract.

All HUD provided information including Lender application files as well as Contractor analyses, reports, reviews, information exchange materials, approval documents, and electronic documents remain the property of HUD.

The Contractor shall determine that no one is employed for HUD origination; processing, underwriting or servicing that is debarred, suspended, subject to a Limited Denial of Participation (LDP) or otherwise restricted from participation in the FHA insurance programs.

The Contractor shall determine there is no identity of interest between any contract employee, the borrower/mortgagor, inspector, PCNA assessor, lender or any other team member of the subject transaction.

The Contractor shall treat all information provided by the borrower/mortgagor entity as proprietary and, by performing an analysis, agrees not to divulge information provided to it by the borrower/mortgagor to anyone other than HUD. All drafts, final documents and reports produced by the Contractor under this contract are the property of HUD and the Contractor may not release them to anyone without HUDs written consent. U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the GTR, upon request or at the end of the contract in electronic form.

The Contractors responsibility for Government information extends from the initial provision for acquisition and receipt of information, through stewardship, custody, and use until returned to, or otherwise disposed of, as directed by the Contracting Officer. The requirement applies to all Government information under the Contractors accountability, stewardship, possession or control, including its subcontractors.

The Contractor shall manage, account for, and secure all Government information provided or acquired by the Contractor. All Government information that is also controlled but unclassified information shall be protected from disclosure in accordance with the clause governing Controlled Unclassified Information (CUI) contained in this contract. The Contractor shall be responsible for all Government information provided to its subcontractors. The Contractor agrees in include a requirement in each subcontract under this contract that flows down the protection from disclosure requirements.

U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the GTR, upon request or at the end of the contract.

4.5 Contractor Personnel

The Contractor shall provide key personnel who shall be responsible for the performance of work. An alternate shall also be designated to act in the absence of the Contract Manager. These Contractor personnel (main point of contact and alternate point of contact) are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, "Key Personnel. The Contract Manager/Project Manager or alternate shall have full authority to act on all contact matters relating to daily operations of this contract. Accordingly, at a minimum, the points of contact shall have the technical knowledge of the requirement and be in the position to receive assignment, guidance and direction from the GTR, GTM and CO per HUDAR 2452.237-73, Conduct of Work and Technical Guidance and shall be allocated enough hours to the requirement to ensure successful performance. These points of contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Contract Manger/Project Manager or alternate shall be available between the hours of 8:00 am to 4:30pm, Monday through Friday EST, except Federal Holidays or when the Government facility is closed for administrative reasons.

The Contractors underwriters shall possess at least one year’s experience in FHA Multifamily lending and Healthcare experience with loan insurance processing, underwriting and closing functions, particularly with the HUDs FHA Section 223(f) and 223(a)(7) programs. The Contractors key personnel shall have previous experience with federal and/or HUDs contracting processes and procedures. The Contractor shall obtain security clearance by HUD'S officials and PIV card for 100% all key personnel and loan underwriters for use of HUD internal software programs: Development Application Processing System (DAP); Integrated Real Estate Management Suite (iREMS) and completion of the Active Partners Performance System (APPS) electronic HUD 2530 Previous Participation Certification Property Submission review procedure, agree and sign the Rules of Behavior for Accessing HUD IT System and Protection of Personally Identifiable Information (PPII) to preserve the integrity of HUDs systems and loan underwriting process. The completion of the background check may take weeks for person that are new to the Federal PIV system. The Contractor shall coordinate and collaborate with the COR/CO-COR to ensure all personnel performing underwriting tasks gets the necessary access to HUDs IT systems.

4.6 Identification of Contractor Employees

All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government personnel during business meeting, over the telephone or via electronic mail, Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees.

Contractors/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review. Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their work space area with their name and company affiliation, or as a minimum, "Contractor after name.

4.7 Quality Control

The Contractor shall establish and maintain a complete Quality Control Program that shall ensure services are performed in accordance with this contract. The Contractor shall develop and implement procedures to identify, prevent, and ensure non-reoccurrence of defective services. The Contractors quality control program is the means by which he assures himself that his work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan.

4.7.1 Quality Control Plan

The Contractor shall develop, maintain, enforce and document a Quality Control Plan (QCP). The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractors methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractors methodology for resolving problems identified by the Government during reviews conducted in accordance with its Quality Assurance Surveillance Plan (QSAP). The QCP shall also provide the Contractors methodology for establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system.

The QCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Governments QASP. The QCP shall address Quality Management Approach, Quality Assurance, Quality Control and Quality Standards.

4.7.2 Security Plan

The Contractor shall provide a Security Plan to GTR to ensure that sensitive documents are physically secure always.

5 Specific Tasks/Scope of Work

The Contractor shall provide underwriting and closing support services for the Office of Multifamily Housing Programs and the Office Healthcare Programs Housing Programs. The Contractor shall work directly with the MF HUD POC in the MF HUD Office, the ORCF Workload Manager and approved MAP Lender who submitted the FHA mortgage insurance application to the HUD office. The loan documents, checklists, punch lists and Exhibits A-G will be available through SharePoint site or electronically. The Contractor will contact the MF HUD POC to coordinate the project site visit and the Contractor will perform the site inspection. The Contractors underwriter shall determine if the loan application is in compliance with program/regulatory/underwriting requirements and is approved to move forward for processing. The Contractor shall initially reject or permanently reject within fifteen (15) calendar days of receiving the application from the MF HUD POC or ORCF Workload Manger.

The Contractor shall send loan files or specific documents electronically using SharePoint, email and when necessary via CD as requested by the MF HUD POC, the ORCF Workload Manager or the requesting HUD Representative. The Contractors underwriter shall update the loan application status through HUDs DAP and/or iREMS secure systems on an as needed basis. The Contractors underwriter shall complete the credit, appraisal, environmental and punch list/checklist documents within thirty (30) calendar days of receiving the application. The Contractor shall review and primarily approve the credit of the borrower and other principals for OMHP and input the appropriate data into HUDs APPS (2530 Previous Process) software system. The Contractors underwriter shall prepare the Loan Committee documents including the HUD Data Reports and/or any required documents to be presented to the local HUD Office, the ORCF Loan Committee or Headquarters as required by HUDs MAP Guide, ORCF Lean Process, Mortgagee Letters and Housing Notices.

The Contractors underwriter shall prepare a rejection letter with all reasons cited in the rejection letter. The Contractors underwriter shall submit the letter to the originating MF HUD Office or the ORCF Workload Manager for the Directors signature. The Contractor shall have all Firm Commitment letters signed by the Director of the originating MF HUD Office or the Director in the ORCF Office. The Contractor shall coordinate with and inform the MF HUD POC and the ORCF Workload Manager throughout the process. The Contractors underwriter shall review and approve all necessary closing loan documents, firm commitment conditions and coordinate with the local HUD general counsel for closing dates and final closing reviews.

The Contractor shall ensure all closing dates shall occur within one-hundred and twenty (120) days of issuance of the Firm Commitment. If the timelines for processing and closing are not met and are under the direct control of the Contractor, a defective service penalty will be assessed under the terms of the contract. After closing, the Contractors underwriter shall submit all original and executed loan files to the MF HUD POC in the originating Hub/Program Center/Regional Center/Satellite Office or the ORCF Workload Manager. The Contractor shall monitor after loan closing, assist and under the direction of the MF HUD POC in the local HUD Office or the ORCF Workload Manager to ensure the timely deposit of closing funds, the review of executed loan documents and submission of the HUD Form 290 for all loan applications closed by the Contractor.

The Contractor shall update the loan application status in the DAP system on a continuing basis until the loan application is completed, either for final rejection or initial endorsement (loan closing). The Contractor shall review and recommend approval through HUDs form 2530 electronic submission in the Active Partners Performance System (APPS) for the Previous Participation Certification process. The Contractor and key personnel must pass the security and background check for the PIV card prior to the start of the contract.

All HUD provided information including Lender application files as well as Contractor analyses, reports, reviews, information exchange materials, approval documents, and electronic documents remain the property of HUD. The Contractor shall not disclose any information that a sponsor or Lender shall provide to the Contractor outside of HUD. The Privacy Act remains in full force and effect. All documents and data shall be returned to HUD when requested by HUD in a format required by the COR/COTR. This provision shall apply to all document/material and deliverables under this contract.

All HUD provided information including Lender application files as well as Contractor analyses, reports, reviews, information exchange materials, approval documents, and electronic documents remain the property of HUD.

The Contractor shall determine that no one is employed for HUD origination; processing, underwriting or servicing that is debarred, suspended, subject to a Limited Denial of Participation (LDP) or otherwise restricted from participation in the FHA insurance programs. The Contractor shall determine there is no identity of interest between any contract employee, the borrower/mortgagor, inspector, PCNA assessor, lender or any other team member of the subject transaction.

The Contractor shall treat all information provided by the borrower/mortgagor entity as proprietary and, by performing an analysis, agrees not to divulge information provided to it by the borrower/mortgagor to anyone other than HUD. All drafts, final documents and reports produced by the Contractor under this contract are the property of HUD and the Contractor may not release them to anyone without HUDs written consent. U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the COR, upon request or at the end of the contract in electronic form.

The Contractors responsibility for Government information extends from the initial provision for acquisition and receipt of information, through stewardship, custody, and use until returned to, or otherwise disposed of, as directed by the Contracting Officer. The requirement applies to all Government information under the Contractors accountability, stewardship, possession or control, including its subcontractors. The Contractor shall manage, account for, and secure all Government information provided or acquired by the Contractor. All Government information that is also controlled but unclassified information shall be protected from disclosure in accordance with the clause governing Controlled Unclassified Information (CUI) contained in this contract. The Contractor shall be responsible for all Government information provided to its subcontractors. The Contractor agrees in include a requirement in each subcontract under this contract that flows down the protection from disclosure requirements.

U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the COR, upon request or at the end of the contract.

The Contractor shall prepare and submit the HUD Form 290 and appropriate supporting documents to the MF HUD POC in the local HUD Office or the ORCF Workload Manager.

Loan underwriting services described in this PWS are required to support FHA mortgage insurance processing on an as needed basis based on…