Presolicitation Notice Mortgage Loan Servicing Support Services.pdf

The U.S. Department of Housing and Urban Development (HUD) intends to solicit proposals in response to Request for Proposal (RFP) number 86615720R00001 for Multifamily (MF) Mortgage Loan Servicing Support Services for the Office of Asset Management and Portfolio Oversight (OAMPO).

This pre-solicitation notice is to inform the industry that a solicitation is planned to be released between the months of July 2020 through August 2020. The period of performance is one (1) base year period, and four (4), one (1) year option year periods. The award will be with a maximum life of 5 years of performance. The Government contemplates award of a single Firm Fixed Price contract.

The North American Industry Classification System (NAICS) code is 522390 – Other Activities Related to Credit Intermediation. The Business Size Standard is $22 million dollars per annum.

The Product Service Code is R710 – Financial Services. To be eligible for award, firms must be registered in the Systems for Award Management (SAM) database under the corresponding NAICS code solicited. Upon issuance of the solicitation, the solicitation documents may be obtained via the Beta.Sam.gov website www.beta.sam.gov.

HUD insures Multifamily and Healthcare mortgages under a variety of Federal Housing Administration (FHA) programs. The Department assumes the role of the mortgagee or lender when the borrower defaults on the loan. Defaulted loans become Multifamily and Healthcare HUD-Held loans under certain circumstances that include:

1. The borrower defaults and the FHA-insured mortgagee assigns the mortgage to HUD by filing a claim for insurance benefits;

2. A current mortgage is assigned to HUD by the mortgagee pursuant to 221(g)(4) of the

National Housing Act;

3. When a purchase money mortgagee is taken back by HUD to finance the sale of the property owned by HUD;

4. When an FHA-insured loan is backed by the Federal Financial Bank (FFB) a direct loan issued to a Housing Finance Agency under the 542(b) or 542(c) Risk Share Program; or

5. An FHA-insured or Multifamily HUD-Held first mortgage is restructured under the

“Mark-to-Market” (or “DEMO”) program or the National Housing Act which results in one or more new subordinate Multifamily HUD-Held mortgages are originated.

Collectively, this portfolio is referred to as the Multifamily and Healthcare HUD-Held portfolio.

HUD also manages multifamily properties as Mortgagee-in-possession (MIP) or owner and relocates tenants from substandard multifamily or Healthcare properties. Accounting services are needed to support and track all property management and relocation financial transactions.

http://www.beta.sam.gov/

HUD utilizes a Minority Bank Program designed to invest excess cash from the project’s Reserve for Replacement account into the minority banks in an effort to earn interest on these funds. Currently, there are seven small, minority banks participating in this program managing approximately $35 million.

The Department of Housing and Urban Development (HUD)/Office of Asset Management and Portfolio Oversight (OAMPO) requires contractor support to provide Mortgage Loan Servicing (MLS) for Conventional, Mark-to-Market (M2M) / DEMO, Healthcare Notes; Property Disposition Portfolio Services; Risk Sharing and Direct Loan Services; as well as Accounting Services for all Multifamily and Healthcare HUD-Held notes.

MLS encompasses a broad but integrated set of functions for Multifamily and Healthcare HUD-

Held notes and properties. MLS is high priority and critical to the successful performance of mortgage loan servicing functions. MLS for mortgage and property servicing entails not only financial aspects of the Multifamily and Healthcare HUD-Held first, second and subordinate notes, mortgage portfolios and properties, but also requires response to a wide variety of incoming inquiries from HUD personnel, borrowers, auditors, billing agents, vendors, attorneys and local taxing authorities. The transactions in this program involve not only the financial management of the assets owned by the Department and managed under Federal legislation, regulation, and HUD’s program directives, but also responsiveness to local laws.

Servicing the asset involves much more than just the application of collections. It also involves the protection of the government’s ability to collect what is owed by establishing accurate, consistent, reliable and timely records along with monitoring, analyzing and reporting results.

The data and analysis from these activities are provided to several offices throughout the Department to report on the assets financial results and the performance of the programs that HUD administers. These data elements enable HUD to carryout important evaluations of program costs and solvency of the FHA insurance funds.