MF_Loan_Services_Industry_Day_QAs.pdf

MF Loan Services

RFI MSP-HY-2019-051

Questions and Answers

Q1 Will proposals to the RFP be evaluated on a “best-value tradeoff basis”, and if not, what will be the evaluation methodology?

A1 The Best Value-Trade Off methodology will be utilized

Q2 Will the FISMA risk rating be low, moderate or high?

A2 It must be FISMA compliant. Risk rating will be provided when solicitation is posted.

Q3 The first paragraph under Section 1 references maintenance of accounts and releases from accounts utilizing the Department’s Minority Bank Investment Program. If the Contractor is a nationally chartered bank, would it be permissible to hold escrows and other bank accounts in accounts at its own institution and not use the accounts at MBIP banks?

A3 No. All escrow funds are managed by the Minority Bank Program only or T-Bills.

Q4 In Section 2, the first bullet point under “Services include”, references HUD’s lockbox facility. If the Contractor is a nationally chartered bank, will it be permissible for the Contractor to establish the lockbox facility within its own institution?

A4 No for auditing purposes, HUD requires a separation between servicing and banking.

Q5 In Section 2, the first bullet point under “Services include”, references “retrieve and post all loan payments”. Please specify if this indicates that the Contractor will retrieve the cash from the lockbox facility and post the payments or whether the Contractor will perform shadow postings after retrieving payment information from the Lockbox facility.

A5 Payments for Loan Servicing will be retrieved from Treasury. The lockbox that you are referring to is for rent and other collections for Property Disposition.

Q6 Section 2, second bullet, references the Post Closing Portfolio

Management (PCPM) Contractor. Please confirm that this Contractor will remain engaged and will perform all Surplus Cash Analysis reviews.

A6 The intention is to have a PCPM contract. However, HUD can’t guarantee that the PCPM contactor will remain engaged

Q7 In Section 2, the sixth bullet point under “Services include”, references scanning all original recorded loan documents. Please confirm whether HUD would require the incumbent to deliver digital files containing images for all historical loan documents

A7 HUD hasn’t decided at this time. Final determination will be when the solicitation is posted.

Q8 Section 3 of the Performance Work Statement has been removed. Please confirm the Contractor will not be responsible for 202/811 Direct Loan UCC Filing, Set-up and Maintenance

A8 This is correct. No 202/811 UCC filing services.

Q9 In Section 4, the 13th bullet point references the contract Property Manager. Please confirm that HUD is responsible for engaging the Property Manager for each project and that the Property Manager is to contractually cooperate with the Contractor

A9 Yes. Property Disposition Division (PDD) will engage the Property Management (PM) Contractor. The PM contractor will need to have some access to the system.

Q10 In Section 4, the final bullet point references maintaining a database of tenants of all occupied units. Please confirm that HUD (or the incumbent) would provide the Contractor with the initial data for this database, along with records indicating when it was last updated.

A10 Yes, PDD will provide the initial data and updates (as verified through the PM Contractor) for these records

Q11 Section 6, first bullet point, references the 202/811 Direct Loan Uniform

Commercial Code Set-up and Maintenance-is this an editing oversight?

A11 No 202/811 UCC filing services. This is a draft PWS.

Q12 Please confirm whether the Contractor will be responsible for UCC filing, set-up and maintenance on any loans, such as the HUD Held portfolio A12 Yes, the awardee will be responsible for these services.

Q13 Will HUD provide a transition in period and offer a training for a new contractor?

A13 Yes, there will be a transition period. HUD will not offer training.

Q14 Is there a system currently in place?

A14 Please explain in detail that the system currently being used is the own by the current incumbent and the new Contractor will have to have their own system.

Yes. The incumbent is using their proprietary system. Any new awardee would need to provide their own system.

Q15 Will the slide presentation be provided?

A15 Yes. They are attached to this posting as Attachment 1.

Q16 Any information you can share about the process to migrate all data and documents from incumbent to new contractor?

A16 This information was provided in the draft PWS. Any changes will be updated in the solicitation.

Q17 Monthly Billing - Why is there monthly billing if surplus cash is calculated once a year?

A17 Billing statements are sent monthly and there is a monthly interest charged

Q18 Will we need to make changes to comply with data act reporting requirements?

A18 The Awardee will have to conform to all HUD and Federal requirements including the

Data Reporting Act.

Q19 What is the whole of services after the note is foreclosed?

A19 The contractor will track all dates pertaining to milestones of the foreclosure. This information shall be maintained as well as records for all receipts and disbursements made prior to, during and after the foreclosure. The contractor may be required to provide historic information regarding the amount of claim payments, advances, receipts and other disbursements as well as funding code and other relevant peripheral information about the property. The contractor must be custodian for this information throughout the restricted period of any deed, use agreement or restrictive covenants placed on a foreclosed property. Some Deeds contain covenants into perpetuity. If the project was 202/811, the contractor must prepare and submit for approval IPAC (?) package to be reimbursed for any expenses incurred during tenant relocation, management and foreclosure of the 202/811 project.

Q20 What is the pricing structure of the current contract, T&M, FFP etc.?

A20 The current contract is hybrid of Firmed Fixed Price and Cost Reimbursement.

Q21 Does the government anticipate using the same pricing structure for the upcoming solicitation?

A21 This will be determined when the solicitation is issued.

Q22 Does the servicing convert active & closed loans? Convert all financial transactions

(Open & Closed) Convert servicing notes? Transition time frame.

A22 Yes

Q23 Is there a document management in place now? Vendor?

A23 The incumbent uses their proprietary document management system.

Q24 Is taxing authorized maintained in the system?

A24 The incumbent is using their proprietary system. Any new awardee would need to provide their own system.

Q25 Who is the current incumbent and when does their contract end?

A25 The current incumbent is Dynaxys and the contract ends January 7, 2019. However, a bridge contract is currently being process for a six month base and a six month option period of performance to provide sufficient time for the new contract to be awarded.

Q26 Are all documents imaged? PDF, JPG?

A26 All documents are not imaged. Currently most of the Legal documents are imaged in the incumbent’s system in .pdf form.

A27 To aid in small-business collaboration, will HUD be providing the list of Industry Day attendees Q27 Yes. It will be attached to this posting as Attachment 2

A28 What is the solicitation number associated with this requirement?

Q28 It will be determined when the solicitation is issued.

*NOTE: Please note that these questions are based on a draft PWS. The answers may change prior to the solicitation issuance.