RFQ_DU204SB13Q0001.pdf

DU204SB-13-Q-0001

1. REQUEST NO.

5a. ISSUED BY

NAME

a. NAME

c. STREET ADDRESS

d. CITY

10. PLEASE FURNISH QUOTATIONS TO

THE ISSUING OFFICE IN BLOCK 5a ON

OR BEFORE CLOSE OF BUSINESS (Date)

2. DATE ISSUED 3. REQUISITION/PURCHASE REQUEST NO. 4. CERT. FOR NAT. DEF.

UNDER BDSA REG. 2

AND/OR DMS REG.1

RATING

6. DELIVERY BY (Date)

7. DELIVERY

9. DESTINATION

a. NAME OF CONSIGNEE

b. STREET ADDRESS

PAGE OF PAGES

5b. FOR INFORMATION CALL: (No collect calls)

TELEPHONE NUMBER

AREA CODE NUMBER

8. TO:

b. COMPANY

e. STATE f. ZIP CODE

c. CITY

d. STATE e. ZIP CODE

IMPORTANT: This is a request for information, and quotations furnished are not offers. If you are unable to quote, please so indicate on this form and return it to the address in Block 5a. This request does not commit the Government to pay any costs incurred in the preparation of the submission of this quotation or to contract for supplies or services. Supplies are of domestic origin unless otherwise indicated by quoter. Any representations and/or certifications attached to this Request for Quotations must be completed by the quoter.

11. SCHEDULE (Include applicable Federal, State and local taxes)

THIS RFQ

REQUEST FOR QUOTATION

(THIS IS NOT AN ORDER)

IS IS NOT A SMALL BUSINESS SET ASIDEX

12/13/2012 RCS-HU-13-00071

1 56

OFFICE OF THE CHIEF PROCUREMENT

OFFICER

40 MARIETTA STREET

US DEPARTMENT OF HUD

14TH FLOOR

ATLANTA GA 30303-2806

Multiple

HOUSING SF HSG DIV PHILADELPHIA

THE WANAMAKER BUILDING

100 PENN SQUARE EAST

PHILADELPHIA

PA 19107-3380

678 732-2761CHARLES HOYLE, JR

01/14/2013 1400 ET

FOB DESTINATION

OTHER

(See Schedule)X

ITEM NO.

(a)

SUPPLIES/SERVICES

(b)

QUANTITY

(c)

UNIT

(d)

UNIT PRICE

(e)

AMOUNT

(f)

Period of Performance: 02/01/2013 to 01/31/2015

0001 Single Family REO Closing Agents for NYC.

0002 Single Family REO Closing Agents for NYC.

(Option Line Item)

TIN#______________________

DUNS#___________________

12. DISCOUNT FOR PROMPT PAYMENT

a. 10 CALENDAR DAYS (%) b. 20 CALENDAR DAYS (%) c. 30 CALENDAR DAYS (%) d. CALENDAR DAYS

NUMBER PERCENTAGE

NOTE: Additional provisions and representations

13. NAME AND ADDRESS OF QUOTER

b. STREET ADDRESS

c. COUNTY

d. CITY e. STATE f. ZIP CODE

14. SIGNATURE OF PERSON AUTHORIZED TO

SIGN QUOTATION

16. SIGNER

a. NAME (Type or print)

c. TITLE (Type or print)

a. NAME OF QUOTER

AREA CODE

NUMBER

15. DATE OF QUOTATION

b. TELEPHONE are are not attached

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition not usable

STANDARD FORM 18 (REV. 6-95)

Prescribed by GSA - FAR (48 CFR) 53.215-1(a)

Closing Agent Services for New York City

RFQ DU204SB-13-Q-0001

SUPPLIES OR SERVICES AND PRICE/COST

SERVICES

The contractor shall provide professional support services for real estate property sales closing services for single-family (1 – 4 units) properties owned by the U.S Department of Housing and Urban Development (HUD) located within the geographic area described in geographic area below for the Philadelphia Home Ownership Center

PERFORMANCE PERIOD

This contract will have a base performance period of one year plus a one-year (1) option period, if exercised. Total length of the contract, including the option periods, shall not exceed 2 years or 30 months from date of contract award.

PRICING

As total compensation for all services performed under this contract, the contractor will be paid according to the Contract Line Item Number (CLIN) prices listed herein. The unit price for Property Closing Services specified herein shall be inclusive of all costs, including, but not limited to, the cost of phones, postage, shipping, delivery costs, courier costs, express mail, faxing, transportation, document reproduction, wire transfer fees, audit costs, title search costs, title examination cost and all office requirement as referenced in this contract. The unit prices for the CLINS entitled Recordation Services and Title Search Services specified herein shall be inclusive of all costs specific to those services.

GEOGRAPHIC AREA

New York City: Bronx, Brooklyn, Manhattan, Queens, Staten Island

The Closing Agent shall have a closing agent office located in the contract area. The Closing Agent shall ensure closings are to be held at the closing agent’s office (if the office is no more than 60 miles from the HUD property that is being purchased) or at a professional office facility located no more than 60 miles from the HUD property that is being purchased.

SUPPLIES AND SERVICES AND PRICES/COST TABLE

Contract Base Year: 1 FEB 2013 – 31 JAN 2014

Contract Line Item Number

(CLIN)

Service Estimated Quantity Unit Price Estimated Total Price for CLIN

Requirement

CLIN 001 Property Closing Services (Tasks 1, 2, 3, 5 and 6)

CLIN 002 Special Recordation Services (Task 7)

CLIN 003 Special Title Search Services (Task 7)

CLIN 004 Aborted Cases -cancellations

CLIN 005 ACA Fee 20

CLIN 006 Next Door Programs – Additional Fee (Task 4)

ESTIMATED TOTAL VALUE OF CONTRACT BASE YEAR

Contract Option Year 1: 1 FEB 2014 – 31 JAN 2015

Contract Line Item Number

(CLIN)

Service Estimated Quantity Unit Price Estimated Total Price for CLIN

Requirement

CLIN 001 Property Closing Services (Tasks 1, 2, 3, 5 and 6)

CLIN 002 Special Recordation Services (Task 7)

CLIN 003 Special Title Search Services (Task 7)

CLIN 004 Aborted Cases -cancellations

CLIN 005 ACA Fee 20

CLIN 006 Next Door Programs – Additional Fee (Task 4)

ESTIMATED TOTAL VALUE OF CONTRACT OPTION ONE

ESTIMATED TOTAL VALUE ALL YEARS

STATEMENT OF WORK (SOW)

STATEMENT OF WORK (SOW) FOR CLOSING AGENT SERVICES

C.1 BACKGROUND

(a) Single Family Mortgage Insurance Program. The Federal Housing Administration (FHA), an agency of HUD, administers the Single Family Mortgage Insurance Program. Upon default and foreclosure of an FHA insured loan, the lender files a claim for insurance benefits. In exchange for payment of a claim, a lender conveys a foreclosed property to HUD. HUD, through an Asset Manager contractor (AM), then manages and sells a sizable inventory of single family homes in a manner that promotes homeownership, preserves communities and maximizes return to the FHA insurance fund. To complete the sales of the properties, HUD requires the services of closing agent contractors (referred to as “Contractor” herein) to perform all necessary closing activities on its behalf.

(b) Interaction/Impact. Performance under this contract will involve interaction with homebuyers and their representatives in the real estate community, mortgage lenders, nonprofit housing and advocacy organizations, staff from HUD’s Homeownership Center, and other service providers under contract to HUD such as the AM.

Additionally, this contract may be impacted by changes in regulation or legislation, and by housing policy initiatives identified by the White House or the HUD Secretary.

C.2 SCOPE OF REQUIREMENTS

(a) Purpose. This is a fixed unit rate contract with a single unit price per completed closing. The Contractor shall proactively work with HUD’s AM, any successor contractors, the GTR and the GTM to ensure that closings are performed in a timely manner. The Contractor shall perform to meet or exceed the performance standards specified in this contract.

(b) Objectives. The primary objectives of this contract are to:

(1) Proactively represent HUD’s interests at the sales closing;

(2) Close on the sales contract as soon as possible after the contract is signed;

(3) Ensure that HUD funds received are accurately and timely provided to U.S. Treasury (Treasury); and

(4) Accomplish the closings with error-free closing documents.

(c) Results and Outputs. The Contractor’s performance under this contract shall ensure that:

(1) Closings are fully completed and reconciled in the shortest time frame possible but no later than the date specified in the sales contract (unless an extension of time to close has been approved by the Asset Manager);

(2) HUD funds are transferred to the Treasury; with few or no assessments of liquidated damages for untimely processing;

(3) The Contractor’s internal quality management includes identifying and correcting errors in processing requirements.

C.3 TASKS AND DELIVERABLES

(a) Task 1: General Requirements. The primary objective is to perform closings of HUD-owned properties as quickly as possible. Typically, a purchaser is provided up to 45 calendar days to close the transaction.

However, from time to time, HUD may offer special incentive programs to homebuyers to close in a shorter period of time, such as 30 days after contract execution. The Contractor shall coordinate with the AM to affect the closing within the time frame specified in the sales contract unless an extension is necessary due to circumstances outside of the Contractor’s control.

(1) Office and Contract Manager.

(i) The Contractor shall establish and maintain a fully staffed, equipped, and supplied main office within the identified geographic area so as to provide convenient service to HUD and its clients as further outlined in Task 3.

The Contractor shall have a toll free number through which HUD’s clients can contact the main office without incurring long distance charges. The Contractor shall take proper health and safety precautions to protect workers, the public and the property of others. The Contractor shall maintain the office(s) to manage assigned closings and provide service from 8:00 AM to 5:00 PM, local time in the geographic area, Monday through Friday, with the exception of recognized federal holidays and other industry-accepted days to be closed (e.g.

Friday after Thanksgiving).

Note: Although only one office is strictly required under this contract, the Contractor is responsible for performing tasks throughout the state in a timely manner. The Contractor may establish other offices that it believes are necessary to facilitate the provision of services in a timely manner throughout the geographic area.

(ii) The Contractor shall provide a Contract Manager who shall be responsible for the performance of work under this contract. The name of this person and an alternate who shall act for the Contractor when the Contract Manager is absent shall be designated in writing to the Contracting Officer and the GTR. Both individuals shall be considered Key Personnel. The Contract Manager or alternate shall be available to HUD staff during normal business hours to discuss all areas of performance under this SOW and shall have full authority to act for the Contractor on all contract matters relating to daily operations of this contract.

(2) Insurance, Licenses, and Certifications. The Contractor shall obtain necessary licenses, insurance certifications, and permits required in the performance of the contract and shall comply with any federal, state, county and municipal laws, codes and regulations applicable to the performance under this contract. The Contractor shall ensure that all subcontractors comply with these requirements. Upon request, the Contractor shall provide copies of the foregoing licenses, insurance certifications and permits. At the commencement of the contract term, and thereafter upon request, the Contractor shall provide an unequivocal opinion of counsel stating that the Contractor, and each of its subcontractors, is in full compliance with all state and local licensing requirements, and that all required permits have been obtained.

(3) Escrow Account.

(i) The Contractor shall establish a non-interest bearing escrow account (unless otherwise required by state law) for all sales proceeds, including earnest money deposits, loan proceeds, and purchaser’s funds presented at closing. The escrow account shall be in the name of the Contractor with the restriction: “As Trustee for the U.S.

Department of Housing and Urban Development.” All distributions of funds shall be made from this account.

The cost of maintaining and operating this account shall be at the expense of the Contractor. This escrow account shall be used only for purposes of this contract and, in the event the Contractor has multiple contracts with HUD, the Contractor shall ensure that a separate account is maintained for each contract; the Contractor shall not co-mingle funds relating to different contracts. The escrow account shall be established in a bank that issues a receipt for the deposit, gives credit for deposited funds immediately upon clearance, and has the capacity to transmit all of the information contained in the form SAMS-1103, in its exact format. The Contractor shall enter into a letter of agreement with its bank that upon demand by HUD, the account will be retitled into HUD’s name.

The Contractor is to be the sole custodian of the HUD escrow account. The Contractor may not delegate, assign or subcontract HUD escrow account responsibilities or allow account access to its affiliates or subcontractors.

The Contractor shall make its bank statement available to the GTR or GTM upon request.

(ii) As soon as possible following termination or expiration of this contract, but no later than 90 days following such termination or expiration, the Contractor shall close the escrow account and provide the GTR with a cashier’s check for the balance in the account. Within 30 days following closing of the account, but no later than 120 days following the termination or expiration of the contract, the Contractor shall provide the GTR with an appropriate reconciliation of all funds covered by said cashier’s check, including a copy of the final bank statement showing a zero balance in the account.

(iii) The Contractor shall provide monthly bank statements to the GTR no later than ten (10) business days following the statement ending date and a letter affirming that the statement has been reconciled. The letter shall also include the number and amount of each check that has been outstanding for more than sixty (60) calendar days and the efforts put forth by the Contractor to clear these checks.

(4) Quality Control (QC) Plan. The Contractor shall establish and maintain a complete QC plan to ensure the requirements of the contract are performed as specified. Two copies of the Contractor’s final QC plan shall be provided to the Contracting Officer not later than the post-award conference. The Contractor shall provide two complete copies to the Contracting Officer as any updates/changes occur. The plan shall include:

(i) Identification of the tools or methods the Contractor will use to ensure that all required time frames in the contract are met;

(ii) A QC review system covering all of the service requirements listed in this work statement. It shall specify the requirements to be reviewed on either a scheduled or unscheduled basis, how often reviews will be accomplished and the title of the individual(s) who will perform the reviews. It shall also specify how records of all reviews conducted by Contractor/subcontractor personnel will be maintained, including documentation of corrective action taken when reviews reveal discrepancies, and where those records will be maintained to ensure access by HUD personnel throughout the term of the contract;

(iii) The methods for selecting responsible subcontractors and monitoring their performance. Include copies of actual or proposed subcontract agreements, including all required FAR clauses that will flow down to the subcontracts; and

(iv) Adequate internal control measures to ensure that:

(A) Case files and file documents are managed and controlled to prevent any loss of documents or disclosure of purchasers’ personal information to unauthorized third parties; and

(B) Funds received and paid out are properly and timely managed and cases are timely reconciled.

(5) Customer Service. Because the Contractor’s performance reflects directly on the Department, customer service is a priority under this contract. The Contractor shall work to perform the highest level of customer service to HUD’s homebuyers and real estate brokers.

(6) Records Maintenance and Safeguarding of Personally Identifiable Information (“PII”).

(i) Throughout the entire life of the contract the Contractor shall maintain a system of record keeping which will ensure that physical and electronic documents are:

(A) Properly and promptly filed upon receipt;

(B) Not lost or misplaced;

(C) Easily and promptly retrieved upon request by the GTR or GTM, Contracting Officer, or any other authorized person; and

(D) Maintained securely and with complete confidentiality.

(ii) The Contractor shall retain the complete record of each closing, keeping all information confidential. It is understood that in the process of performing the responsibilities set forth in the contract, the Contractor will receive physical and/or electronic copies of documents and reports that include PII. It is the Contactor’s responsibility to strictly ensure the confidentiality of PII relating to each purchaser.

(iii) PII includes, but is not limited to any information about an individual, including financial transactions, employment history and information which can be used to distinguish or trace an individual’s identity, such as their name, social security number, date and place of birth, mother’s maiden name, etc., or any other personal information that is linked or is linkable to an individual.

(iv) The Contractor is responsible for implementing adequate safeguards to ensure that such PII is not made available, whether intentionally or unintentionally, to parties not involved in the sale of property to the purchaser.

(v) The Contractor is responsible for implementing adequate safeguards that ensure that such PII is not made available, whether intentionally or unintentionally, to employees of the Contractor and subcontractor that do not require access to such PII in order to perform their responsibilities under the contract.

(vi) The Contractor shall retain all pertinent records as identified in subsection (x) herein below, throughout the life of the contract. At the expiration of the contract, the Contractor shall store those documents, at the Contractor’s expense, for a period of three years after contract expiration. HUD shall have access to all records upon request. After three years, the Contractor shall, at its own expense, shred those records in order to maintain the confidentiality of all PII contained in the files.

(vii) Any documents containing PII that are not subject to the records retention requirements set for in subsection iii herein below shall also be shredded. With respect to electronic records that contain PII, the Contractor shall, at its own expense, destroy such records in a manner that ensures that PII is properly safeguarded.

(viii) The Contractor must at all times comply with applicable requirements of HUD Information Technology Security Policy, Handbook 2400.25 Rev. 1.

(ix) In the event of any incident involving loss or compromise of PII by Contractor or subcontractor personnel, it is imperative that the Contractor report the incident immediately to the GTR and the Contract Specialist, within 45 minutes of the occurrence, so that HUD can report the incident within one hour, as required by OMB Memorandum M-06-19, dated July 12, 2006.

(x) Minimum records to be maintained include:

(E) Bank Statements and proof of deposits for the required escrow account;

(F) Proof of wire transfers of proceeds;

(G) Canceled checks for disbursements (including the property address and notation of types of expenses);

(H) A log of all payments received, recorded separately showing the FHA case number, date, amount, purpose, and if payment was made at closing or outside of closing; and

(I) Copies of each document related to the closing performed.

(7) Subcontracting. Any subcontractor providing services under this contract must either be identified in the technical submission or approved in writing by the GTR and Contracting Officer prior to any performance by the subcontractor. The subcontractor shall not have a negative performance history or be suspended or otherwise prohibited from doing business with the Government. The Contractor shall be solely responsible for all performance under this contract, including any services performed by subcontractors. The selection of a subcontractor must not violate any conflict of interest provision contained herein.

(b) Task 2: Pre-closing Activities. The Contractor shall perform all pre-closing actions, including but not restricted to the ones detailed below, necessary to ensure the closing occurs as scheduled.

(1) Open Closing File: The Contractor shall establish a closing file upon receipt of the contract package from the AM. The contract package shall include:

(i) A signed sales contract (HUD 9548) with any addenda and amendments;

(ii) Title Evidence (when available);

(iii) Documentation regarding status of rents due to HUD (when purchaser is HUD’s tenant); and

(iv) Bulk Sales listing (if applicable).

(2) Title Search for Property Closing Services. Although HUD does not warrant or guarantee title, HUD’s intent is to convey clear and marketable title to purchasers. As such, the Contractor shall perform a tax search and a title examination, including the land, judgment and tax records, and any other records which may contain information which affects the title or may reflect a lien, encumbrance or defect on the title, from the date of the acquisition of the title by the Secretary of HUD until the date the closing package is assigned to the Contractor.

Contractor shall report to the AM within seven business days of initial assignment of the case on the results of the search, indicating either that no defects were found or indication of any defects and the steps taken or to be taken by the Contractor to resolve the defect. The Contractor shall take actions to clear all minor title issues (such as tax liens and assignments) in such a manner as to avoid any delays in closing. Major title defects that are not routine in nature shall be brought to the attention of the AM within one business day of discovery. If the results of the search reveal any federal government interests, the Contractor shall consult with the GTR prior to forwarding the report to the AM.

(3) HOA and Condominium Documents. The Contractor shall be responsible for obtaining any Homeowner Association or Condominium Association documents that may be required by local law. The Contractor shall also be responsible for ensuring that such documents are provided to the purchaser either at the time of closing or prior to closing in accordance with local law. The actual cost of such Association documents shall be noted as a seller’s expense on the HUD-1, with the notation “HOA/Condo documents”. A copy of such documents must be maintained in the property case file.

(4) Written Notification. The Contractor shall provide written notifications as required.

(i) Not less than fifteen calendar days prior to the latest possible closing date, the Contractor shall provide the broker a written warning if a firm closing date has not been established that the contract may expire.

(ii) The next business day after the closing date stated on the contract, if no closing has occurred, the Contractor shall notify the broker in writing that the sale did not close and that the AM has been notified that the sale has been canceled. The deed shall be voided and returned to the AM if closing does not take place within 7 calendar days of the Special Warranty Deed.

(5) Deed and Closing Instructions. When a closing has been scheduled, the Contractor shall notify the AM of the date. The Contractor shall accurately prepare the Special Warranty Deed and any other locally required documents that require signature (e.g., local tax transfer affidavits) and forward them electronically to the AM for approval and signature ten (10) business days prior to the scheduled closing. The deed and all documents shall be prepared in accordance with applicable local, state and federal laws. The AM shall return the signed deed and other documents to the Contractor no sooner than five (5) calendar days prior to the scheduled closing.

(6) Special Discount Programs Instructions. The Contractor may periodically be assigned closings involving programs whereby HUD makes discount sales to governmental entities and HUD-approved nonprofit organizations, including $1 Home Sales. The Contractor shall not receive any compensation in addition to compensation for Property Closing Services for work performed in connection with a closing conducted in accordance with a Special Discount program.

(i) Assignment: Upon assignment of a closing of a discount sale to a governmental entity or a HUD-approved nonprofit organization, the Contractor may receive from the AM, in addition to basic closing documents, a completed Addendum to Sales Contract for $1 Home Sales or Land Use Restriction Addendum for Non-profit organization, whichever is applicable.

(ii) Deed: When preparing the required deed for a sale under a Special Discount program, Contractor shall ensure that the appropriate “deed restriction” clause is included, in accordance with the instructions provided as an attachment at Section J.1 and referenced HUD guidance. Please note that no deed restriction is required for $1 Home Sales closings.

(7) Rental Monies. The Contractor shall verify with the AM that all rental monies due to HUD have been paid outside settlement if the buyer is a HUD tenant. If any due amounts have not been paid, the Contractor shall ensure such payment is made at time of closing.

(8) Extension Requests. The Contractor shall administer broker requests for extensions of the sales closing date. Such requests may only be accepted via the Closing Extension Request form, which includes supporting documentation, and shall be accompanied by the full non-refundable fee, in the form of a cashier’s or certified check, or money order. No extension shall be processed without the extension fee unless prior written approval has been provided by the AM. No extension may be granted without express written approval from the AM or the GTR or GTM. The AM has full authority to waive any extension fee.

(i) Not more than one business day after receipt of the request, the Contractor shall fax the request and all supporting documentation (including a copy of the check) to the AM.

(ii) If the request is approved by the AM, the Contractor shall deposit the extension funds into the escrow account and notify the broker no more than one business day after approval.

(iii) If the request is approved by the AM and the fee is waived, the Contractor shall refund the extension funds to the broker within one business day of approval and waiver.

(iv) If the request is denied by the AM, the Contractor shall refund the extension fee to the broker no later than one business day after denial with instructions to close by the scheduled closing date.

(v) If an extended sale fails to close, the Contractor shall, no more than one business day after the failed closing, telephonically or electronically notify the AM, and forward the extension fee and a copy of the extension approval to the AM with the notation “FAILED TO CLOSE.”

(vi) For each case where a closing is delayed due to title-related issues, and a closing cannot take place within the required time frames due to such delays, the Contractor shall prepare an Extension Request form, documenting the reason(s) for the delay and the length of the delay, and forward the request to the AM as outlined above for approval. Under such circumstances, it would not be the responsibility of the purchaser to request an extension.

(9) Cancelled Closings and Expired Contracts. For cases where the Sales Contract has been cancelled, or where closing failed to occur by the date reflected in the contract, the Contractor shall return the original signed deed to the AM no later than the second business day after the sales contract was cancelled or expired.

(10) Preparation of the HUD-1.

(i) Accurate preparation of the HUD-1 is critical to timely processing. The Contractor shall use an automated closing process software package as identified in the technical portion to complete the HUD-1 and to minimize errors. The Contractor shall prepare the HUD-1 so as to facilitate a full and complete closing, including all required disbursements, collections, and deposits. For all closings, the Contractor shall scan and upload a copy of the prepared HUD-1 into P260 for the Asset Manager’s review/approval, twenty-four (24) hours prior to the scheduled closing date.

(ii) Recording Penalties and Interest. For items such as taxes, condo/HOA fees, etc., where the AM is responsible for paying such bills in a timely manner, if any penalties and/or interest charges are reflected on any of the final bills obtained by the contractor, such penalties and/or interest charges shall be reflected on the HUD-1, as a seller’s expense, as a separate line item in the appropriate section. For example, if a final utility bill is obtained and the bill reflects overdue charges, the actual bill amount would be reflected on one line with the overdue charge reflected with the same title, but preceded with “P&I” (e.g. Water Bill on one line and P&I Water Bill on a separate line). The amount of the penalty and/or interest shall also be reflected in the Contractor’s weekly report of closed cases under a separate column with the heading “P&I Charges.”

(iii) At closing, the extension fee shall not be applied to the amount due from the buyer unless the sale closes prior to the expiration of the extension, in which case the buyer shall be credited with a prorated (based on calendar days) portion of the fee. The full amount of the fee shall be reflected on lines 104 and 404 of the HUD-1. Any credited portion shall be reflected on lines 206 and 506.

(11) Third Party Closings: The Contractor or a subcontractor shall physically represent HUD at all closings that are conducted by a third party. Although the Contractor is permitted to work out a mutually agreed upon closing location, the purchaser ultimately decides and controls the location of the third party closing. The Contractor shall receive the full fixed unit price per closing as set forth in Section B.4 for all third party closings at the completion of the required tasks described below. For such closings, the Contractor’s responsibilities are as follows:

(i) Forward letter to third party closer outlining HUD’s requirements and time frames. Contractor shall clearly inform the third party closing agent that HUD requires the submission of the HUD-1 for review and approval by the AM at least 24 hours before closing.

(ii) Perform title search on HUD’s behalf (as outlined under C.3(b)(2)).

(iii) Prepare deed and forward for signature (as outlined under C.3(b)(5)).

(iv) Ensure that the HUD-1 is accurate.

(v) Inform the third party closer that HUD requires certified funds or receipt of a wire transfer of the sales proceeds on the day of closing. Upon receipt of sales proceeds from the third party, deposit funds into HUD’s escrow account and wire transfer the funds to HUD’s Treasury account on the day of closing or the next banking day. Submit original wire receipt to the AM with the closing package.

(vi) Ensure that the deed is recorded. Obtain recording information/receipt from the third party for submission with the closing package OR submit within 24 hours of receipt from the third party.

(vii) Forward closing package (as outlined under C.3(e)(4)) to AM to be received no later than the third business day after closing.

(viii) The Contractor shall ensure that any problems encountered with the third party closing are clearly addressed as part of the HUD Closing Agent’s certification (as outlined under C.3(e)(4)(vi).

(c) Task 3: Closing Activities. The Contractor or a subcontractor shall conduct the actual closing at the office location stated in the technical section of this quote or at a mutually agreeable location with the purchaser.

The Contractor shall make every reasonable attempt to work out a mutually agreed upon location with the purchaser. The Contractor or a subcontractor shall be physically present at every closing. Closings may not be conducted by mail, fax, telephone or other means unless prior approval is obtained from the GTR on a case-by-case basis. The closing shall be completed timely and accurately. At the closing, the Contractor shall perform all required actions, including the following activities:

(1) Explain all closing papers and documents to the purchaser(s).

(2) HUD-1: Complete and execute in its capacity as HUD’s agent the Settlement Statement (HUD-1) in the block indicated for seller. The Contractor shall sign the HUD-1 for HUD as the agent for HUD (not as the seller itself).

(3) Other Documents: Complete and execute all documents necessary to provide a complete closing (e.g., deed, note and mortgage or deed of trust, tax affidavit, etc.).

(4) Sales Proceeds: Accept a certified or cashiers check made payable to the Contractor. Electronic transfer of funds is also acceptable.

(5) Payment of Taxes and Assessments: Provide tax certificate or similar documentation to prove taxes have been paid. This documentation shall be submitted with the closing package.

(6) Allowable Closing Expenses Payable from HUD’s Proceeds: From HUD’s sales proceeds pay any allowable seller closing expenses, as previously identified hereinabove that are due and payable at the time of closing. Unpaid property taxes, condo fees, HOA fees, ground rents and utility bills for the current year must be prorated and paid at the time of closing. The AM must be kept fully informed of these transactions.

(i) The Contractor shall pay only those costs listed as closing costs automatically paid by HUD as reflected in current notice (Notice 2011-33) or subsequent official guidance that may be issued. The Contractor shall pay the expenditures listed therein, as herein qualified, at the time of closing from HUD’s sales proceeds. In the event that sales proceeds are insufficient to pay all allowable expenses, the Contractor shall advance payment for any excess expenses and request reimbursement from HUD through the submission of an invoice (see Section G.1).

Also in accordance with the current notice (Notice 2011-33) or subsequent official guidance regarding allowable closing costs, for cases where the executed HUD-9548, Sales Contract, reflects approved closing costs on Line 5, the Contractor shall charge allowable closing costs to HUD, not to exceed the amount reflected in the Sales Contract. Note: Wire transfer fees for sales proceeds wired to the Contractor is the buyer’s expense and is not paid by HUD. Wire transfer fees for sales proceeds wired by the contractor to HUD’s Treasury account are at the contractor’s expense.

(ii) If there are reasonable and customary closing costs that are paid by the seller in the local real estate market(s) covered by this contract that are not included in current notice (Notice 2011-33) or subsequent official

HUD guidelines, the Contractor may submit a request to the GTR for approval of such additional costs as allowable closing costs. The Contractor shall identify all such additional closing costs and submit them with complete explanation/justification to the GTR for “blanket” approval of these items as allowable closing costs.

(7) Surveys: Contractor shall provide the Homeowner Satisfaction Survey and a postage pre-paid envelope to the purchaser and shall provide the Real Estate Broker Satisfaction Survey and postage pre-paid envelope to the broker.

(d) Task 4. Next Door Programs. Next Door programs include sales under the Officer Next Door, Teacher Next Door, Firefighter Next Door and Emergency Medical Technician Next Door programs.

(1) Assignment: Upon assignment of a sale under a Next Door program, the Contractor will receive from the AM contractor, in addition to basic closing documents, a completed HUD-9548-A, “Certification of Law Enforcement Officer/Teacher/Firefighter/Emergency Medical Technician,” HUD-9548-B, “Land Use Restriction Addendum” and, where applicable, HUD-9548-C, “Assignment of Sales Contract.” The Contractor shall ensure that a sale pursuant to a Next Door program does not take place unless properly completed and executed original forms are present and shall ensure that the original copies are made a part of the closing file.

(2) Deed: When preparing the required deed, the Contractor shall ensure that the appropriate “deed restriction” clause is included, in accordance with the instructions provided as an attachment in Section J.2 and referenced HUD guidance.

(3) Second Mortgage and Subordinate Note. The Contractor shall ensure that a properly completed and executed second mortgage and subordinate note in an amount equal to exactly fifty percent (50%) of the list price are signed by the purchaser(s) under a Next Door program and are made a part of the closing file. The Contractor shall prepare the necessary second mortgage and subordinate note using the sample formats provided in HUD Notice H 99-30 at Exhibit E or subsequent guidelines with the modifications outlined in the attachment provided in Section J.2. The contractor will receive from the AM the date of first occupancy to be used in the Second Mortgage and Second Lien Mortgage Note. Requests for extension of occupancy dates must be submitted in writing to the AM and must be supported by appropriate documentation. The AM will then submit the extension request to the GTR for review and action, as appropriate.

(4) At closing. Contractor shall:

(i) Review the signed HUD Form 9548-A and HUD Form 9548-B with the purchaser(s). Emphasize to the purchaser(s) under the Next Door program that they have signed a document requiring them to own no other residential real estate for three years and to occupy the dwelling as their sole residence for that required term.

Read aloud to the purchaser(s) the Warning contained on the form, which outlines possible criminal penalties for failure to comply with these requirements or for falsification of the form.

(ii) Inform purchaser(s) that any delay in occupancy as agreed and specified in the second mortgage documents will be considered a breach of contract terms. Contractor shall provide purchaser(s) with the required Fact Sheet (Exhibit I for the Officer Next Door program and Exhibit J for the Teacher Next Door program of HUD Notice H 99-30) and shall insert into the Fact Sheet, the statement that any delay in occupancy as agreed and specified in the second mortgage documents will be considered a breach of contract terms. In addition, Contractor shall obtain written acknowledgement of receipt by the purchaser(s) of the required Fact Sheet by inserting an acknowledgement of receipt signature line, including the date, at the bottom of page 2 of the Fact

Sheet for this purpose. The original acknowledgement is to be submitted to the AM as part of the closing package.

(5) Recording Fees. The Contractor shall ensure that the recording fees for the second mortgage and the subordinate note are charged to the buyer on the HUD-1.

(6) Recordation. The Contractor shall file the second mortgage and the subordinate note for record no later than one business day after the closing and provide the AM with a copy of the second mortgage and subordinate note and the original recordation receipt as part of the closing package.

(7) Original Documents: Upon receipt of the recorded second mortgage and the subordinate note, the Contractor shall forward the original documents to the AM no later than one business day after the closing.

The Contractor shall report all suspected cases of fraud/abuse to its assigned GTR at the appropriate HOC.

(e) Task 5. Post-closing Activities. The Contractor shall perform all necessary post-closing activities, including those below, to ensure that HUD is able to accurately and timely reconcile the closing.

(1) Verification of Closing. The same day that the closing takes place, electronically notify the AM of the closing.

(2) Wire of Proceeds. Not later than one banking day after the closing takes place, the Contractor shall wire the net sales proceeds to the U.S. Treasury via FEDWIRE using the form SAMS-1103, Request to Transfer Funds. Delays in the remittance of net sales proceeds shall be subject to liquidated damages as outlined in Section F-3. As stated in C.3 (e) (4) (vi), the contractor’s certification shall contain any potential mitigating factors for the GTR’s consideration.

(3) Delivery of the Deed for recordation. Not later than one business day after the closing has taken place, the Contractor shall deliver the deed for legal recordation in the correct county and provide written notification to the AM and the Homeowners or Condo Association (if applicable).

(4) Scanning and Delivery of the Closing Package. The Closing Agent shall scan and upload the documents to be included in the closing package into HUD’s designated portage P260 not more than 2 business days after the closing is completed. This requirement also applies to third party closings. A Closing Package shall include:

(i) The original HUD-1 and, if applicable, an invoice for any amounts advanced by the Contractor on HUD’s behalf

(ii) Original dated wire transfer confirmation

(iii) A copy of the tax certificate or locally acceptable proof that taxes were paid;

(iv) A copy of the deed and evidence that the deed was delivered for recordation

(v) A copy of all applicable invoices or receipts of disbursements.

(vi) The Contractor’s certification that all payments and deductions from the closing (including the Contractor’s fee) have been paid from the funds deposited in the escrow account containing the closing proceeds, and a statement that all actions have occurred on time and no liquidated damages should be assessed or an estimation by the Contractor of liquidated damages that would normally be assessed based on the formulas reflected herein and the number of days the submission is delinquent. The statement should also include any potential mitigating factors why liquidated damages should not be assessed. The GTR will review the Contractor’s statement and make the final recommendation whether or not to assess liquidated damages. If notification of assessment of liquidated damages is received from the GTR the Contractor shall pay assessed liquidated damages with 10 business days.

In the event that liquidated damages are assessed, the Contractor shall submit his/her payment to the Government by check for the amount of such damages to the GTR with a cover letter identifying the FHA case number and property address of the package(s) subject to liquidated damages.

For those closings where the Contractor is not in control of the paperwork, the Contractor shall include specific details regarding any delays in meeting the requirements outlined herein as part of the Contractor’s certification (e.g. recording receipt). Thereafter, the Contractor shall forward all missing documents to HUD’s Designee immediately upon receipt accompanied by a brief note outlining the circumstances of the delay.

(5) Proration Calculations: Unless the following information is fully documented on the HUD-1, the Contractor shall submit a copy of the proration calculation for verification with the settlement package for:

(i) All taxes and assessments prepaid by sellers

(ii) Condominium/Homeowner Association Fees

(iii) Ground rent fees

(iv) Utility escrow credited to the borrower (if applicable)

(v) All prorated taxes/assessments (less penalties and interest) unpaid by seller

(vi) Penalty and interest for failing to pay taxes on time

(6) HUD-1 Corrections: Explain and correct any errors or adjustments to the Settlement Statement (HUD-1) as requested by HUD or the AM or the purchaser rising after settlement within two (2) business days of notification, after which liquidated damages will be assessed in accordance with Section F-3, for any errors/changes that cause delays in the reconciliation of the case. The same day the corrections are made, the Contractor shall provide a copy of any corrected documents to the AM.

(7) Overpayments/Duplicate Payments: Any refunds/returns of any duplicate payments or overpayments made by the Contractor on HUD’s behalf that are received by the Contractor shall be returned to HUD within five business days of receipt in accordance with instructions from the GTR, along with a corrected HUD-1 showing where the adjustment occurred.

(f) Task 6. Reporting. By noon Eastern time on the first business day of each week, the Contractor shall electronically provide to the AM and GTR the following report:

(1) Closing Status Report. The current status of all cases assigned as of the close of business the previous Friday.

(i) The report shall be divided into five categories: (1) Active files (closing date not scheduled); (2) Scheduled files (scheduled for closing); (3) Delinquent files (closing date passed without a closing occurring); (4) Cancelled files (sales contract was cancelled); and (5) Closed files (closing occurred during the previous week).

(ii) All five categories shall include the buyer(s) name, property address, FHA case number, scheduled closing date, whether there is a third party closer, and in addition for category (5), date closed, date proceeds were deposited, date proceeds were wire transferred, date the complete closing package was delivered to the AM, and a column to reflect P&I’s.

(iii) AM Activities – As an attachment to the closing status report, the Contractor shall provide a narrative report to the GTR summarizing the responsiveness, timeliness, and cooperation of the AM Contractor to facilitate timely closings. The summary shall address the AM’s actions regarding submission of the initial case assignments, responses to extension requests, pre-closing approvals and deed submissions, and any comments/complaints received about the AM. Information must be substantiated with specific case numbers or instances.

(g) Task 7: Special Services. Occasionally the GTR will require special services of the Contractor that do not involve closings assigned by the AM. The unit prices for the special services shall be inclusive of all costs specific to those services. These special recordation and title search services are separate and distinct from the recordation and title search services required as part of the Property Closing Services under tasks 1, 2, 3, 5 and 6.

(1) Recordation of documents. The Contractor shall draft and/or send for recording documents (such as reconveyance deeds, quit claim deeds, corrected deeds) as required by the GTR. The documents shall be filed for record no later than two business days after assignment or receipt of the document, whichever shall occur later.

Evidence that the document was sent for recordation shall be returned to the GTR along with the Contractor’s invoice for payment.

(2) Title Services. The Contractor shall perform title searches and provide written evidence of those searches at the request of, and within the time frame approved by the GTR. Title searches may be requested on a property that may or may not be the property of HUD. Each title search shall consist of a tax search and title examination, including the land, judgment and tax records, and any other records that may contain information that affects the title or may reflect a lien, encumbrance or defect on the title for the ten preceding years.

C.4 RESERVED

C.5 RESERVED

C.6 APPLICABLE DOCUMENTS

(a) All applicable HUD publications and forms listed below can be obtained by calling 1-800-767-7468.

Forms may be downloaded from HUDCLIPS at: http://www.hudclips.org/cgi/index.cgi. The Contractor shall be responsible for maintaining a supply of the forms needed to perform all of the services required under this contract.

HUD Handbook 4310.5 REV-2, Property disposition Handbook – One to Four Family, dated May 1994 HUD-1, Settlement Statement and Addendum HUD-9546, Homeowner Satisfaction Survey HUD-9547, Real Estate Broker Satisfaction Survey SAMS-1103, Wire Transfer Transmittal w/completion instructions SAMS-1106, Invoice Transmittal w/completion instructions SAMS-1111, Payee Name and Address

(b) Sample deeds and forms listed below will be provided by the GTR upon contract award, except for the Release of Federal Tax Lien which shall be obtained from the Internal Revenue Service. The Contractor shall be responsible for local reproduction of these forms.

Deed Request for Extension of Closing Date Release of Federal Tax Lien

C.7 DEFINITIONS/ACRONYMS

For purposes of this contract, the following definitions/acronyms shall apply:

“AFFILIATE” – Any firm or individual in which the contractor, any principal officers, managers or staff, or immediate family members have any identity of interest. This would include, but is not limited to, interests through investment, common ownership joint venture, subcontracting relationship, or familial relationship.

“ASSET MANAGER CONTRACTOR (AM)” – The AM is under contract to HUD to handle all day-to-day activities regarding the HUD inventory and will normally be the entity designated to act on behalf of HUD with regard to sales closings and assignments of sales contracts to the closing agent.

“ASSIGNED CLOSING” – A sales transaction for which the contractor has received an executed copy of the Sales Contract (HUD-9548) from the AM.

“CLOSING” or “SALES CLOSING” – The meeting at which the real estate transaction covered by the HUD-9548 executed by HUD and a purchaser is consummated, including (1) execution or delivery (or both) of all necessary documentation (in proper form), (2) funding of the purchase price and (3) disbursement of all proceeds in accordance with the HUD-1 settlement statement.

“CONTRACTING OFFICER” – A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings.

“DAY” – Unless otherwise specified in the contract, a calendar day.

“FHA” – The Federal Housing Administration.

“GTM” – The Government Technical Monitor.

“GTR” – The Government Technical Representative.

“HUD” – The U.S. Department of Housing and Urban Development. The terms “Department of Housing and Urban Development”, “Department”, “HUD”, “Seller” and “Government” shall be synonymous and may be used…