Amendment_2.pdf

(x)

DU208WR-17-R-0001

x x

1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted ; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT

THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted , such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

x

DENVER CO 80202-4801

HUD-NFWR

1670 BROADWAY 23RD FLOOR

OFFICER

OFFICE OF THE CHIEF PROCUREMENT

US DEPARTMENT OF HUD

12/01/2016000002

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS. IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

12. ACCOUNTING AND APPROPRIATION DATA (If required) is not extended.is extended, Items 8 and 15, and returning

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended , by one of the following methods: (a) By completing

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

FACILITY CODE CODE

10B. DATED (SEE ITEM 13)

10A. MODIFICATION OF CONTRACT/ORDER NO.

9B. DATED (SEE ITEM 11)

9A. AMENDMENT OF SOLICITATION NO.

CODE

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)

7. ADMINISTERED BY (If other than Item 6)CODE 6. ISSUED BY

PAGE OF PAGES

4. REQUISITION/PURCHASE REQ. NO.3. EFFECTIVE DATE2. AMENDMENT/MODIFICATION NO. 5. PROJECT NO. (If applicable)

1. CONTRACT ID CODE

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

11/03/2016

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority) appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

E. IMPORTANT: Contractor is not, is required to sign this document and return __________________ copies to the issuing office.

ORDER NO. IN ITEM 10A.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

Tax ID Number: Not Available

DUNS Number: Not Available

This amendment makes changes to the Performance Work Statement as a result of the Question and Answer period.

A. Question and Answers are provided as a part of this amendment and reference the changes to the Performance Work Statement.

B. The proposal due date is changed to 12/15/2016.

Period of Performance: 01/31/2017 to 01/30/2018

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)15A. NAME AND TITLE OF SIGNER (Type or print)

15C. DATE SIGNED 16B. UNITED STATES OF AMERICA 15B. CONTRACTOR/OFFEROR 16C. DATE SIGNED

(Signature of person authorized to sign) (Signature of Contracting Officer)

EDGAR A. CROSS

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA

FAR (48 CFR) 53.243

NSN 7540-01-152-8070

Previous edition unusable

Except as provided herein, all terms and conditions of the document referenced in Item 9 A or 10A, as heretofore changed, remains unchanged and in full force and effect .

Solicitation DU208WR-17-R-0001

Schedule B Description/Specifications

BASE CONTRACT PERIOD

CLIN DESCRIPTION QTY UNIT

UNIT

PRICE

TOTAL

AMOUNT

0001 Transition In-Phase I 1 Job

0002 Transition In-Phase II 1 Job

0003 Single Family Mortgage Asset Recovery Technology (SMART) (IAW 5.2)

9 Month

0004 Extensions and Variances Automated Requests System (EVARS) (IAW 5.3)

9 Month

0005 Electronic Courses on Loss Mitigation and Servicing System (ECLASS) (IAW 5.4)

9 Month

0006 Accounting - Financial Functions (IAW 5.5)

9 Month

0007 Customer Service (IAW 5.6) 9 Month

0008 Production Environment (IAW 5.7) 9 Month

0009 Standard and Non-Standard Reports (IAW 5.8)

50 Per Report

0010 Development/Testing Environment (IAW 5.9)

1 JOB

0011 Training (IAW 5.10) 4 Class

0012 Systems Documentations (IAW 5.11) 7 Docume nts

0013 Transition Out NOTE: The transition out CLIN will only be ordered in the event that HUD determines to not exercise the next option period. This will be a unilateral decision by HUD and may be ordered at any time during the contract period.

1 JOB RESERVED

0014 TRAVEL Not to Exceed Provided by Government

TOTAL PRICE FOR BASE PERIOD

OPTION PERIOD 1

CLIN DESCRIPTION QTY UNIT

UNIT

PRICE

TOTAL

AMOUNT

0015 Single Family Mortgage Asset Recovery Technology (SMART) (IAW 5.2)

12 Month

0016 Extensions and Variances Automated Requests System (EVARS) (IAW 5.3)

12 Month

0017 Electronic Courses on Loss Mitigation and Servicing System (ECLASS) (IAW 5.4)

12 Month

0018 Accounting - Financial Functions (IAW 5.5)

12 Month

0019 Customer Service (IAW 5.6) 12 Month

0020 Production Environment IAW 5.7) 12 Month

0021 Standard and Non-Standard Reports (IAW 5.8)

50 Per Report

0022 Development/Testing Environment (IAW 5.9)

1 JOB

0023 Training (IAW 5.10) 4 Class

0024 Systems Documentations (IAW 5.11) 7 Docume nts

0025 Transition Out NOTE: The transition out CLIN will only be ordered in the event that HUD determines to not exercise the next option period. This will be a unilateral decision by HUD and may be ordered at any time during the contract period.

1 JOB RESERVED

0026 TRAVEL Not to Exceed Provided by Government

TOTAL PRICE FOR OPTION PERIOD 1

OPTION PERIOD 2

CLIN DESCRIPTION QTY UNIT

UNIT

PRICE

TOTAL

AMOUNT

0027 Single Family Mortgage Asset Recovery Technology (SMART) (IAW 5.2)

12 Month

0028 Extensions and Variances Automated Requests System (EVARS) (IAW 5.3)

12 Month

0029 Electronic Courses on Loss Mitigation and Servicing System (ECLASS) (IAW 5.4)

12 Month

0030 Accounting - Financial Functions (IAW 5.5)

12 Month

0031 Customer Service (IAW 5.6) 12 Month

0032 Production Environment (IAW 5.7) 12 Month

0033 Standard and Non-Standard Reports (IAW 5.8)

50 Per Report

0034 Development/Testing Environment (IAW 5.9)

1 JOB

0035 Training (IAW 5.10) 4 Class

0036 Systems Documentations (IAW 5.11) 7 Docume nts

0037 Transition Out NOTE: The transition out CLIN will only be ordered in the event that HUD determines to not exercise the next option period. This will be a unilateral decision by HUD and may be ordered at any time during the contract period.

1 JOB RESERVED

0038 TRAVEL Not to Exceed Provided by Government

TOTAL PRICE FOR OPTION PERIOD 2

OPTION PERIOD 3

CLIN DESCRIPTION QTY UNIT

UNIT

PRICE

TOTAL

AMOUNT

0039 Single Family Mortgage Asset Recovery Technology (SMART) (IAW 5.2)

12 Month

0040 Extensions and Variances Automated Requests System (EVARS) (IAW 5.3)

12 Month

0041 Electronic Courses on Loss Mitigation and Servicing System (ECLASS) (IAW 5.4)

12 Month

0042 Accounting - Financial Functions (IAW 5.5)

12 Month

0043 Customer Service (IAW 5.6) 12 Month

0044 Production Environment (IAW 5.7) 12 Month

0045 Standard and Non-Standard Reports (IAW 5.8)

50 Per Report

0046 Development/Testing Environment (IAW 5.9)

1 JOB

0047 Training (IAW 5.10) 4 Class

0048 Systems Documentations (IAW 5.11) 7 Docume nts

0049 Transition Out NOTE: The transition out CLIN will only be ordered in the event that HUD determines to not exercise the next option period. This will be a unilateral decision by HUD and may be ordered at any time during the contract period.

1 JOB RESERVED

0050 TRAVEL Not to Exceed Provided by Government

TOTAL PRICE FOR OPTION PERIOD 3

OPTION PERIOD 4

CLIN DESCRIPTION QTY UNIT

UNIT

PRICE

TOTAL

AMOUNT

0051 Single Family Mortgage Asset Recovery Technology (SMART) (IAW 5.2)

12 Month

0052 Extensions and Variances Automated Requests System (EVARS) (IAW 5.3)

12 Month

0053 Electronic Courses on Loss Mitigation and Servicing System (ECLASS) (IAW 5.4)

12 Month

0054 Accounting - Financial Functions (IAW 5.5)

12 Month

0055 Customer Service (IAW 5.6) 12 Month

0056 Production Environment (IAW 5.7) 12 Month

0057 Standard and Non-Standard Reports (IAW 5.8)

50 Per Report

0058 Development/Testing Environment (IAW 5.9)

1 JOB

0059 Training (IAW 5.10) 4 Class

0060 Systems Documentations (IAW 5.11) 7 Docume nts

0061 Transition Out NOTE: The transition out CLIN will only be ordered in the event that HUD determines to not exercise the next option period. This will be a unilateral decision by HUD and may be ordered at any time during the contract period.

1 JOB RESERVED

0062 TRAVEL Not to Exceed Provided by Government

TOTAL PRICE FOR OPTION PERIOD 4

Performance Work Statement (PWS)

SMART – Business Service Provider

August 23, 2016

Version 1.1

Vision 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 Initial Contract Activity

1.11 Contractor Travel

1.12 Transition-In - Conversion

2. Definitions and Acronyms

2.1 Definitions

2.2 Acronyms

3 Government-Furnished Property and Services

3.1 Government Systems and Services

3.2 Facilities

3.3 Equipment

3.4 Materials

3.5 Quality Assurance (QA)

4 Contractor-Furnished Items and Services

4.1 Physical Security And Safeguards

4.2 Computer Hardware, Software, And Automated Business Processes

4.3 Material

4.4 Contractor Responsibilities

4.5 Contractor Personnel

4.6 Identification of Contractor Employees

4.7 Quality Control

5 Specific Tasks

5.1 Transition-In/Conversion

5.2 Single Family Mortgage Asset Recovery Technology (SMART)

5.3 Extensions and Variances Automated Requests System (EVARS)

5.4 Electronic Courses on Loss Mitigation and Servicing System (ECLASS) System Requirements

5.5 Accounting - Financial Functions

5.6 Customer Support

5.7 Production Environment

5.8 Standard and Non-Standard Reports

5.9 Development/Testing Environment

5.10 Training

5.11 System Documentations

5.12 Transition Out at End of the Contract Period

6 Deliverables

6.1 Quality Control Plan

6.2 Acceptance Criteria

7 Performance Requirements Summary

8 Related Documents

Vision Statement

Obtain specialized Business Service Provider (BSP) to provide loan servicing services, online training and customer support as well as a state-of-the-art web-based and rule-based technology to support current and future initiatives and requirements with a customized business intelligence architecture.

1 General Information

1.1 Introduction

The National Servicing Center (NSC), a Headquarters' Division of the Office of Single Family Housing

Asset Management (OSFAM), in the U.S. Department of Housing and Urban Development (HUD), is seeking to obtain a Business Service Provider (BSP) Support Services to provide a state-of-the-art web based technology that supports current and future HUD initiatives and requirements with a customized business intelligence architecture that is consistent with HUDs existing and planned standard enterprise architecture (EA) infrastructure. The Department intends to procure the services of a business service that is specialized in web hosting services, enhancements, maintenance, training and support as specified for web-based business service providers and/or automated business processes and develops web-based programs and applications to service and track servicing activities the Secretary Held portfolio excluding

Reverse or HECM Mortgages and monitor contractor performance. The BSP is to provide automated business processes that have capability to perform comprehensive loan servicing requirements necessary to meet HUD guidelines for servicing the various HUD loan programs as well as maintaining documented quality control measures. The BSP also provides interactive Servicing and Loss Mitigation online trainings, webinars and notifications to various users. The BSP is required to perform system maintenance, modification and enhancements to improve and update functionality, visual appeal and aesthetics of the website to assure that it is compatible with current Industry technology and provide technical support and training to all various users.

In addition, the BSP is required to support other accounting and financial functions, business processes, reporting mechanisms and provide capability to perform comprehensive analysis to ensure proper financial activities documented and identified. The Contractor shall ensure the BSP has complete documentation of all audit logs, collection activity, disbursements activity and other accounting related functions performed by the SMART BSP. The data files shall be forwarded to the identified transaction file repository on a daily basis to be processed and loaded to the General Ledger ("FHASL).

Under this Contract, Customer service is a high priority and critical to the successful performance and support of system functions. The NSC is seeking to obtain professional customer service support to provide customer service, technical assistance, and assistance to a wide variety of incoming inquiries from lenders in a consultative manner, to appropriately route calls to the proper areas, specifically in the area of Loss Mitigation and Servicing issues and support services to HUD's National Servicing Center.

1.2 Background

The Federal Housing Administration (FHA), an organizational unit within HUD, administers the single-family mortgage insurance program. FHA insures approved lenders against the risk of loss on loans they finance for the purchase, and in some instances rehabilitation, of single-family homes. When an FHA insured loan goes into default, the lender is required to evaluate each defaulted borrower for loss mitigation, and if loss mitigation is not feasible, to commence foreclosure timely. Following foreclosure, the lender may convey the foreclosed property to HUD and file a claim for insurance benefits.

The National Servicing Center (NSC) provides national servicing and loss mitigation support to FHA lenders and borrowers in the form of client-based loss mitigation assistance and servicing complaint resolution. NSC also monitors loan servicing activities of all FHA approved servicers and lenders, evaluates risk to the FHA fund through statistical analysis, reviews default and foreclosure information for program study, and manages FHA portfolio.

HUD utilizes a variety of systems to store information related to the current eight (8) million active insured single-family loans. A significant amount of historical data is contained within the Single Family

Data Warehouse (SFDW), and is used by the NSC to identify trends, project successes and failures in the servicing activities, analyze the impact of risk on the FHA insurance fund, and monitor lender performance. HUD system also interfaces with other external systems through a secure middleware application for electronically integrating data elements. HUD currently owns and uses the following customized systems:

1. Single Family Mortgage Asset Recovery Technology (SMART) to service and track servicing activities on most loan portfolios named within this PWS. SMART is currently the business service provider that provides automated business processes that support comprehensive loan servicing on all other programs that are under the jurisdiction of the National Servicing Center.

SMART has the capability to perform comprehensive loan servicing requirements necessary to meet HUD guidelines for servicing the various HUD loan programs.

2. Extensions and Variances Automated Requests System (EVARS)to provide FHA lenders an interactive automate process available through the Internet that gives approved FHA lenders real-time opportunity for automated request, review, approval and/or denial of extensions and variances related to various loan programs.

3. Electronic Courses on Loss Mitigation and Servicing System (ECLASS) to provide online training to FHA lenders, housing counseling agencies, HUD and other non-profit organizations with web-based Servicing and Loss Mitigation training and notifications to various related conferences.

4. Customer Support - Customer Service is a high priority and critical to the successful performance and support of system functions. The NSC is seeking to obtain professional customer service support to provide customer service, technical assistance, and assistance to a wide variety of incoming inquiries from lenders in a consultative manner to appropriately route calls to the proper areas, specifically in the area of Loss Mitigation and Servicing issues and support services to

HUD's National Servicing Center.

5. Accounting, Financial Functions - The BSP is required to support other accounting and financial functions, business processes, reporting mechanisms and provide capability to perform comprehensive analysis to ensure proper financial activities documented and identified. The

Contractor shall ensure complete documentation of all collections, disbursements and other accounting related functions. All information relative to these and other accounting transactions shall be readily accessible and filed in the loan level servicing file. All accounting files shall be the property of HUD and available to HUD upon demand during the Contractor's expressed/regular business hours. The data files shall be forwarded to the identified transaction file repository on a daily basis to be processed and loaded to the General Ledger ("FHASL).

1.3 Constraints

The services identified in this PWS will adhere to the rules, regulations, laws, standards, and conventions identified by HUD as well as within the Federal Government. Many of the applicable documents, handbooks, forms, user guides, and other policy documents referenced in this PWS are publicly available on the Internet at:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/cio/ea/newea/resources, http://www.gsa.gov/portal/content/133515, http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/handbook_4000-1 www.section508.gov or www.access-board.gov

1.4 Description of Services

The objectives sought from this contract are:

Demonstrated effective risk management that identifies opportunities for reducing the primary or secondary portfolio.

Developed and maintained State-of-the-art web based technology that supports current and future

HUD initiatives and requirements.

Expanded Customer Service Support

Provide proper and accurate proprietary and budgetary accounting transactions

Deliver complete and accurate supportive reconciliations between servicing activities and accounting transactions

Create and /or modify various trial balance reports based on client needs per Treasury requirements

Specifically, the Department's objectives are identified as the following tasks:

1. Transition-In – Conversion

2. Single Family Mortgage Asset Recovery Technology (SMART) to service and track servicing activities on most loan portfolios named within this PWS. SMART is currently the business service provider that provides automated business processes that support comprehensive loan servicing on all other programs that are under the jurisdiction of the National Servicing Center.

SMART has the capability to perform comprehensive loan servicing requirements necessary to meet HUD guidelines for servicing the various HUD loan programs.

3. Extensions and Variances Automated Requests System (EVARS) to provide FHA lenders an interactive automate process available through the Internet that gives approved FHA lenders real-time opportunity for automated request, review, approval and/or denial of extensions and variances related to various loan programs.

4. Electronic Courses on Loss Mitigation and Servicing System (ECLASS) to provide online training to FHA lenders, housing counseling agencies, HUD and other non-profit organizations with web-based Servicing and Loss Mitigation training and notifications to various related conferences.

5. Production Environment to ensure the security, integrity and business rules of HUD data are maintained on a regular basis.

6. Customer Support - Customer service is a high priority and critical to the successful performance and support of system functions. The NSC is seeking to obtain professional customer service support to provide customer service, technical assistance, and assistance to a wide variety of incoming inquiries from lenders in a consultative manner to appropriately route calls to the proper areas, specifically in the area of Loss Mitigation and Servicing issues and support services to

HUD's National Servicing Center.

7. Accounting, Financial Functions - The BSP is required to support other accounting and financial functions, business processes, reporting mechanisms and provide capability to perform comprehensive analysis to ensure proper financial activities are documented and identified. The

Contractor shall ensure complete documentation of all transactions, disbursements and other accounting related functions. All information relative to these and other accounting transactions shall be readily accessible. All transaction history files shall be the property of HUD and available to HUD. The data files shall be forwarded to the identified transaction file repository on a daily basis to be processed and loaded to the General Ledger ("FHASL).

8. Development/Testing Environment

9. Reports: Standard, Non-Standard, Ad-Hoc and Rapid Development of Reports

10. Training

11. System Documentations: Technical Manuals, Source Codes, Functional Requirements, Users

Manuals and other System Related Documents

12. Transition Out at End of the Contract Period

1.5 Non-Personal Services

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.

If the Contractor believes that any actions constitute, or are perceived to constitute personal services, it shall be the Contractor's responsibility to notify the Contracting Officer (CO) 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 is a base period of 12 months with four (4) 12-month option periods.

1.7 Place of Performance

The services to be performed under this contract shall be performed at the Contractor facility.

1.8 Hours of Operation

The Contractor is responsible for providing services between the hours of 7:00 am to 7:00 pm, local time in the geographic area, Monday thru Friday except for Federal holidays or when the Government facility is closed due to local or national emergencies, administrative closing, or similar Government directed facility closings. Weekly hours shall not exceed a forty (40) hour work week and a typical work day will be 8 hours each day Monday through Friday. The Government reserves the right to change hours of operation or restrict contractor access. Work outside of these daily hours is prohibited without

Contracting Officer approval. Government agencies will not be available during scheduled holidays, inclement weather, weekends, and after duty hours.

The Contractor shall at all times maintain an adequate workforce for the uninterrupted performance of all tasks defined within the contract when the Government facility is not closed for the above reasons. When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce is essential.

1.9 Special Qualifications

HUD's system clearance procedures require that the Systems Security Administrator (SSA) and Key

Personnel shall use forms provided by HUD to initiate requests for user access to SMART, other HUD systems and to request access modifications and deletions. The SSA shall certify, not later than ten (10) calendar days from the effective date of the contract and ongoing seven (7) days from new hire, that all staff has received instruction in system security issues, are familiar with the contents of the current version of HUD Handbook 2400.24 Rev. 2, Information Security Program, and have completed the

HUD's Computer Based Training program or Rules of Behaviors.

1.10 Initial Contract Activity

1.10.1 Post Award/Kickoff Conference

The Contractor shall attend post award conference convened by the contracting activity or contract administration office in accordance with FAR Subpart 42.5. The Government intends to convene a Post

Award Conference with the Contractor within ten business days after contract award. The Contracting

Officer will notify the Contractor of the specific date, location, and agenda within five business days after contract award. Post Award Contract location shall take place in Oklahoma City.

1.10.2 Office Location

The Contractor shall establish and maintain a business office appropriately staffed and equipped with computers, copying machines, software, hardware, servers, etc. within thirty (30) calendar days from the effective date of the contract. The Contractor shall notify the CO and GTR upon completion. HUDs

National Servicing Center is located in Oklahoma City, Oklahoma and is in the Central time zone.

1.11 Contractor Travel

Prior to travel, the Contractor shall coordinate with and receive Government authorization from the GTR for all travel. Reimbursement of travel costs will be in accordance with the Federal Travel Regulation and 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 Contractor's local travel. Local travel is defined as travel within fifty (50) miles of Oklahoma City, OK. All other travel will be reimbursed on a cost reimbursable basis; no profit or fee will be paid.

1.12 Transition-In - Conversion

As a successor, the Contractor shall have sufficient personnel on board during the one hundred and fifty

(150) calendar day Transition-In period to ensure a smooth transition with the incumbent Contractor. The

Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to the program is minimized. During the Transition-In period, the Contractor shall become familiar with the requirements in order to commence full performance of services by the end of the contract Transition-In period. Transition-In is not required if the successor Contractor is the incumbent

Contractor. The Government reserves the right to decrease Transition-In Period. (See Specific Task 5.1

Transition-In/Conversion)

2 Definitions and Acronyms

Loan Types Regulatory and Program Directives

The following information provides a description and reference for regulatory guidance of the specific programs.

Assigned First Mortgages (Forward): First mortgages transferred to HUD through the former

Assignment Program, which provided forbearance relief for delinquent borrowers. The termination of the

Assignment Program was effective as of April 26, 1996. HUD regulations governing the program are contained in HUD Handbooks 4330.2 REV-I&2; 4330.1 REV-5; 4335.2; 4310.5 REV-2; 24 CFR 203;

Housing Notice H97-74; other applicable Housing Notices, Mortgagee Letters; and any subsequent publications regarding the aforementioned loans, as well as verbiage in the Note, Mortgage or Deed of

Trust. Assigned mortgages are serviced as traditional whole loans.

Purchase Money Mortgage (PMM): PMMs and Ferrell PMMs are direct loans from HUD to certain eligible borrowers and/or non-profit corporations. Ferrell PMMs were the result of a lawsuit in which borrowers were given an opportunity to avoid foreclosure. HUD allowed those borrowers to purchase a home from REO and provided second mortgages in cases where the properties cost was more than the original loan. HUD originates and services the loan debt for Servicing for all PMMs is based on the terms of the mortgage.

Home Equity Conversion Mortgage (HECM)-Insured: FHA Insured HECM loans, commonly referred to as reverse mortgages, are designed to enable elderly homeowners to convert the equity in their homes to monthly streams of income and/or lines of credit. To guarantee continued payments to the borrower, should the lender fail to make the required payments, a second mortgage in HUD's name is executed and recorded subsequent to the first mortgage. Minimal servicing is required except in the event of lender failure, which has not occurred since origination of the HECM program in 1985.

Home Equity Conversion Mortgage (HECM)-Assigned: First mortgage loans in good standing, upon reaching a specified threshold, may be assigned to HUD for continued loan servicing for the life of the loan. Before acceptance of assignment of the first mortgage, HUD ensures that there is clear title from the lender to HUD. Following assignment, monthly or periodic payments are made by HUD's Contractor to the borrower. The Contractor also monitors the status of tax and hazard insurance payments and initiates foreclosure of the loan upon the death or non-compliance of the borrower.

The Housing and Community Development Act of 1987 (P.L. 100-242, February 5,1988) established and subsequent legislation has amended, a Federal mortgage insurance program, Section 255 of the National

Housing Act, 12 USC 1715z-20, to insure home equity conversion mortgages (HECM).

HUD regulations governing the program are contained in 24 CFR 206. Handbooks guidelines are in

4235.1 REV-1; 4330.2 REV-1&2; 4330.1 REV-5, Chapter 13; 4335.2; and 4310.5 REV-2. Other guidance is contained in applicable Housing Notices, Mortgagee Letters, subsequent publications regarding HECM loans, as well as in the verbiage in the Note, Mortgage, and the Home Equity

Conversion Loan Agreement.

235 Recapture Program: The former 235 Mortgage Subsidy program provided monthly assistance payments to help low income borrowers afford homeownership. The Housing and Community

Development Acts of 1980 and 1981 that changed Section 235 of the National Housing Act requires the

Secretary of HUD to recapture all or a portion of the subsidy assistance payments when the mortgage is terminated through payoff or sale of the property. Mortgages are subject to recapture where the firm commitment is dated on or after May 27, 1981 and are calculated by the Contractor. HUD regulations governing the program are contained in HUD Handbook 4330.1 REV-5 and Housing Notice H 94-66 as extended by Housing Notice H 2002-11.

Partial Claim (PC) Subordinate Mortgage: A Partial Claim, a loss mitigation tool, available to delinquent eligible borrowers, whereby HUD advances funds to the servicing lender to cover the delinquent arrearage for the borrower. In exchange, the borrower signs a subordinate note promising to pay HUD upon payoff or sale of the property. The Partial Claim as a loss mitigation option was first introduced in Mortgagee Letter (ML) 96-61, which has been superseded by ML 03-19 except for the model mortgage and note attachments. Servicing tasks are generally limited to collection of the note when the first mortgage is terminated through payoff or sale of the property. HUD regulations governing the program are contained in HUD Handbooks 4330.2 REV-1&2; 4330.1 REV-5; 4335.2; 4310.5 REV-2; all applicable Housing Notices; Mortgagee Letters especially ML 96-61, ML 2003-19, ML 2009-23, ML

2009-32, and ML 2012-22; any subsequent publications regarding Partial Claim Subordinate Mortgages;

as well as verbiage in the Note and Mortgage.

Nehemiah Program: The Nehemiah Program, which has been terminated by HUD, was a down payment assistance program. These loans carry a second mortgage requiring repayment of all or a portion of the subsidized amount paid by HUD on behalf of the borrower. Payment of these mortgages is due upon sale or payoff of the first mortgage.

1. Title VI of the Housing and Community Development Act of 1987 established the Nehemiah

Housing Opportunity Grants Program (N HOP), which authorized HUD to make grants available to nonprofit organizations to enable them to provide loans to families purchasing homes that are constructed or substantially rehabilitated in accordance with a HUD-approved program.

2. HUD regulations governing the program are contained in Housing Notice H 96-3 as extended by

H 2002-13. The servicing guidance for this portion of the contract can be found in HUD

Handbooks 4330.1 REV-5, Chapter 11; 4330.2 REV-1&2; 24 CFR 235; Housing Notices H 94-

66 as extended by 1-1 2002-11; H 96-3 as extended by H2002-13; any other applicable

Housing Notices, Mortgagee Letters; and any subsequent publications.

Good Neighbor Next Door Program (GNND): As part of its commitment to preserve neighborhoods, HUD sells foreclosed homes in designated revitalization areas at a 50% discount to police offices, teachers, fire fighters and emergency medical personnel. Program participants must agree to occupy the subject properties for a period of three years. Program requirements call for second mortgages on these loans as a means to secure compliance with the occupancy requirement. Where program compliance is fulfilled, HUD releases the second mortgage without charge to the mortgage holder. Failure to comply with the terms required by the Program will result in collection activity and possible foreclosure. This program began as a Presidential Initiative in August 1997 for law enforcement officers. Housing Notice H

97-51 introduced the program. The definition of a law enforcement officer was expanded in Housing

Notice H 97-73, issued in December 1997, increasing the number of officers eligible to participate in the

OND program. Housing Notice H 99-30 further expanded the existing program to include Teachers and placed the requirement for a second note and mortgage effective as of November 18, 1999. The program was further expanded in 2006 to include firemen and emergency medical technicians.

Asset Control Area Program (ACA): This program provides for the discounted sale of HUD owned properties in designated revitalization areas to local government agencies or non-profit groups willing to rehabilitate the properties and resell them to income eligible borrowers who must agree to occupy the property for a defined period of time. The ACA program requires placement of two different second mortgages in a sequential order as a means to secure program compliance. A compliance note provides recourse in the event the non-profit fails to complete the rehabilitation or defaults on any of the other program requirements. The second enforcement note provides recourse against the eventual owner occupant purchaser of the property to ensure that the occupancy requirement is met. When program compliance is fulfilled, HUD releases the appropriate second mortgage without any charge to the non-profit or borrower.

1. Initially implemented as a Demonstration Program in 1998 following enactment of Public Law

105276 and strengthened in September of 2002.

2. HUD regulations governing the program are contained Notices H 97-51; H 97-73; H 99-30; HUD guidelines found in HUD Handbooks 4330.2 REV-1&2; 4330.1 REV-5; 4335.2; 4310.5 REV-

2;24 CFR 203; applicable Housing Notices, Mortgagee Letters; Standard Operating Procedures and any subsequent publications regarding the aforementioned loans, as well as verbiage in the

Note and/or Mortgages.

Hope for Homeowners (H4H): This program was introduced as part of The Housing and Economic

Recovery Act of 2008 (HERA). Under this program, a borrower facing difficulty with his or her mortgage will be eligible to refinance into an affordable FHA-insured mortgage.

1. At origination of an H4H mortgage prior to January 1, 2010, the borrower executed a Shared

Equity note and mortgage (SEM) in favor of HUD with a fixed dollar amount inserted for initial equity. Initial equity is calculated as the difference between the HOPE mortgage balance and the appraised value at the time of HOPE loan origination. Based on the date of sale, disposition or refinance, HUD is entitled to a percentage of the initial equity pursuant to the schedule stated in the Shared Equity Mortgage. The SEM should be recorded as a second priority lien against the property.

2. At origination prior to January 1, 2010, the borrower executed a shared Appreciation note and mortgage (SAM) in favor of HUD representing fifty percent (50%) interest in future appreciation.

Based on the date of a sale, disposition or refinance, HUD is entitled to receive fifty percent

(50%) in future appreciation with a subordinate lien holder(s) who met specific criteria for the

HOPE mortgage. The SAM should be recorded as a third priority lien against the property.

3. All H4H mortgages originated on or after January 1, 2010, an Exit Premium Mortgage (EPM) replaced the SEM and the SAM. Based on the date of sale, disposition or refinance, HUD is entitled to a percentage of the initial equity pursuant to schedule state in the EPM.

Emergency Home Loan Program (EHLP): The Dodd-Frank Wall Street Reform and Consumer

Protection Act provided $1 billion to the U.S. Department of Housing and Urban Development (HUD) to implement the Emergency Homeowners' Loan Program (EHLP). The program offers a declining balance, deferred payment loan (non-recourse, subordinate loan with zero interest) for up to $50,000 to assist eligible homeowners with payments of arrearages, including:

o Delinquent mortgage payments (principal and interest); and o Delinquent taxes and mortgage insurance and hazard insurance premiums; and o Condominium or homeowner’s association fees; and o Late fees assessed by the lender/servicer; and o Certain, foreclosure-related attorney's fees; and o Lender inspection fees, when required under FHA regulations (24 CFR 203.377) for properties with FHA-insured mortgages that are in default.

In addition to payment of arrearages, EHLP funds will also be used to assist eligible borrowers to make payments of principal, interest, taxes and insurance (PITI) owed on their first mortgage.

Program assistance shall be provided to eligible borrowers for the greater of either:

o A maximum period of 24 months, or o A maximum of $50,000 in mortgage payment assistance, whichever occurs first.

Under EHLP, HUD will assist eligible borrowers in Puerto Rico and the 32 states not assisted under the

U.S. Treasury's Innovation Fund for Hardest Hit Housing Markets program. The methodology for determining the amount of EHLP assistance that shall be allocated to each state shall be based, in part, on each respective state's relative unemployment measures.

After the first payment is made on behalf of the borrower, the fiscal agent will create an open-ended

"HUD Note" and mortgage in the name of the Secretary of the HUD of sufficient size to accommodate the expected amount of the assistance to be provided to homeowner.

Approved applicants will be required to sign the HUD Note and mortgage agreeing to repay in full the principal balance of funds loaned to their household through the EHLP Program, either $50,000 or any mount between $0.00 and $50,000, whichever is lesser and reflects the actual amount loaned to the borrower.

The final balance of the loan shall be provided to the Contractor via electronic upload upon a determination of termination of assistance has been made for a given borrower, per program terms and policies described. The mortgage shall be recorded by the EHLP Fiscal Agent as a subordinate lien to the borrower's first mortgage.

2.1 Definitions

Business/Work Days - Every official work day of the week which are days between and including

Monday to Friday. This does not include public holidays and weekends.

Calendar Day - Any day of the 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.

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 Monitor (GTM) - An individual designated by the Contracting Officer to assist in providing technical direction and monitoring performance 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.

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.

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.

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

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.

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 Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

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

COR - Contracting Officer Representative

COTS - Commercial Off-the-Shelf

CPO - Office of the Chief Procurement Officer of HUD

EST - Eastern Standard Time (U.S.)

ETC - Estimate to Completion

GAO - U.S. General Accounting Office

GTM - Government Technical Monitor

GTR - Government Technical Representative

HUD - U.S. Department of Housing and Urban Development

HUDAR - HUD Acquisition Regulation

HUD Web - HUDs Intranet Web Site and related WEB pages.

IG or OIG - Inspector General (Office of)

IT - Information Technology

OCPO - Office of the Chief Procurement Officer

OIG - Office of Inspector General

OMB - Office of Management and Budget

PL Public Law

PM - Project Manager

POC - Point of Contact

PPM - Project Planning and Management

QA - Quality Assurance

QASP - Quality Assurance Surveillance Plan

QCP - Quality Control Plan

SF - Standard Form

TBD - To be determined

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 the terms and conditions of this contract. The Government will furnish, at no cost to the

Contractor, the GFP shown below.

3.1 Government Systems and Services

3.1.1 Information Systems - The following are descriptions of HUD systems and databases used daily to support tracking and servicing of HUDs mortgages.

3.1.1.1 Single Family Insurance System (SFISnet or A43) - The Single Family Insurance System

(SFIS) is a HUD system of record used to maintain the insurance-in-force (IIF) database, which contains accurate and detailed case information on FHA-insured single family properties (except HECM). The

Contractor shall access SFIS to verify loan information as deemed necessary to determine insurance status and claims information.

3.1.1.2 FHA Connection -The FHA Connection is an interactive system available through the Internet that gives approved FHA lenders real-time access to FHA systems for the purpose of conducting official

FHA business in an electronic fashion such as reporting the status of insured loans. Additionally, the FHA

Connection allows HUD to post information of interest to Mortgagees. FHAC can also be used to determine insurance and claims information.

3.1.1.3 Extensions and Variance Processing (EVARS) - a business service provider that provides FHA lenders an interactive automate process available through the Internet that gives approved FHA lenders real-time opportunity for automated request, review, approval and/or denial of extensions and variances related to various loan programs.

3.1.1.4 Electronic Courses on Loss Mitigation and Servicing (ECLASS) a business service provider that provides FHA lenders, housing counseling agencies, HUD and other non-profit organizations with web-based "Servicing and Loss Mitigation" training and notifications to various related conferences.

3.1.1.5 Single Family Mortgage Asset Recovery Technology (SMART) - the current business service provider used to service and track servicing activities on most loan portfolios named within this PWS.

SMART is currently the business service provider that provides automated business processes that support comprehensive loan servicing on all other programs that are under the jurisdiction of the National

Servicing Center. SMART has the capability to perform comprehensive loan servicing requirements necessary to meet HUD guidelines for servicing the various HUD loan programs.

3.1.1.6 Home Equity Reverse Mortgage Information Technology (HERMIT) a business service provider used to service and track servicing activities for HECM loans. The servicing module in

HERMIT allows HUD and servicers to effectively service all HECM loans from initial loan setup through the claims process. All HECM servicing is expected to occur in the HERMIT system.

3.1.1.7 P260 a business service provider used by HUD to track and manage REO properties.

3.1.1.8 Neighborhood Watch- Neighborhood Watch is intended to aid HUD/FHA staff in monitoring lenders and our programs, and to aid lenders and the public in self-policing the industry. The system is designed to highlight exceptions, so that potential problems are readily identifiable. In addition, the system can be used to identify loan programs, geographic areas and lenders that are performing well

3.1.1.9 HUD-owned toll-free telephone number (1-877-622-8525).

3.1.2 Access to HUD Information Systems – Contractor’s software and hardware must be compatible with HUDs existing computer environment or environment that may evolve during the life of this contract. HUD software currently used includes Microsoft Office suite of tools, Adobe Acrobat, and other standard office software. The Contractor shall ensure compatibility with the HUD network.

Contractor employees (including subcontractors) who will need to have access to HUD information systems and/or business service providers (e.g. SAMS or P260) must undergo a background investigation.

See Clause HUDAR 2452.239-70 Access to HUD Systems (Deviation).

3.1.2.1 Security Access -Due to the sensitivity of loan, property and vendor profile data, access to HUD systems and/or business service providers shall be limited to individuals based upon their specific duties and the security of the system. As a condition of obtaining access, Contractor employees requiring access to HUD systems shall follow the procedures as set forth in Section I, HUDAR 2452.239-70. HUD may grant, deny, or revoke an individual's access rights to a HUD system based upon the results of the security background check of the individual.