SOW RFI for Multifamily.pdf

Summary/Description of Services

The U.S. Department of Housing and Urban Development (HUD) on behalf of the Government National Mortgage Association (Ginnie Mae) is conducting market research to identify interested sources that can provide the following services.

Ginnie Mae has a requirement for a Contractor to provide Multifamily loan servicing functions. These services include but are not limited to servicing existing portfolios and, in the event Ginnie Mae has to default any of its issuers, the Contractor will be required to provide default services. On occasion the Contractor may be required to provide support services in support of this contract.

It is Ginnie Mae’s ultimate goal to dispose of all acquired portfolios expeditiously at the best obtainable market price. The Contractor shall subservice all portfolios with timeliness and the maximum degree of efficiency to achieve Ginnie Mae’s goal.

In the future, Ginnie Mae may assign additional portfolios to the Contractor as the need arises. All loans being sub-serviced by Ginnie Mae’s existing Contractor will be transferred to the Contractor for servicing under this contract.

Responses to this RFI should address the following:

General Information and Requirements

(a) The Contractor has proven eligibility that it is an approved Ginnie Mae Issuer and maintains current MBS issuer eligibility. The following requirements have been demonstrated:

1) It is an approved Ginnie Mae Multifamily Issuer and maintains current MBS

Issuer eligibility.

2) It possesses IT infrastructure to support the services as described in the Statement of Work (SOW).

3) It is capable of completing Transition In, including National Institute Science Technology

(NIST) certification accreditation by Ginnie Mae, under the SOW when directed by Ginnie Mae, which may be within six months from date of award.

(b) Ginnie Mae holds a defaulted multifamily portfolio totaling approximately $18.9 million. Between fiscal years 2004 – 2008, there were no defaults. The future level of defaulted activity is uncertain and dependent upon various program and economic factors. In difficult economic times Ginnie Mae must be prepared to handle a large volume of defaults to ensure it can fulfill its guarantee obligation.

(c) In the future, Ginnie Mae may assign additional portfolios to the Contractor as need arises. All loans being subserviced by Ginnie Mae’s existing Contractor will be transferred to the new Contractor for servicing under this contract.

(d) It is Ginnie Mae’s ultimate goal to dispose of all acquired portfolios expeditiously at the best obtainable market price. The Contractor shall subservice all portfolios within timeliness and the maximum degree of efficiency to achieve Ginnie Mae’s goal.

(e) All loan or property files held under this contract shall be maintained for a period of 10 years from the date of the Ginnie Mae issuer default. This requirement applies to all loans whether categorized as voluntary or involuntarily paid or discharged. All pooled and non-pooled loan files shall be transferred when the period of performance of this contract expires.

Description of Tasks

Transition–In

The Contractor shall provide a detailed plan describing how they will transition all services to be provided under this Master Subservicer contract from Ginnie Mae’s current Master Subservicer to its own operation. The transition plan shall detail all specific actions that need to be taken and their expected completion dates. First, the transition plan shall identify critical implementation issues and the associated risk. The contractor shall define for each risk a mitigation strategy and elaborate on how the Contractor will address such issues. Second, the transition plan shall be comprehensive and assure Ginnie Mae that the work can be transitioned to the new Contractor within six months of contract award, including the required certification and accreditation, if requested. Third, the transition plan shall be implemented and completed with no reduction in service to Ginnie Mae. Following award of this contract the Contractor shall meet with Ginnie Mae to finalize the transition in plan which shall provide for the orderly transition of the work performed under this contract.

The Contractor’s infrastructure and systems for production, development, disaster recovery, and test sites must be Certified and Accredited by National Institute Science Technology (NIST) standards when requested. Or perhaps as early as during the six month transition period. Ginnie Mae will conduct this certification and accreditation or review the contractor’s certification and accreditation. Ginnie Mae shall have the final say as to the acceptability of the certification. This includes all Government Furnished Property (GFP) and Contractor provided hardware and software which will be utilized to process any information on behalf of Ginnie Mae or the Government. The Contractor shall provide a six month transition-in plan with clear deliverables, milestones and dates which is thorough and comprehensive.

The Contractor shall identify any potential risks and propose mitigation strategies to address any identified risks during the transition-in. The contractor shall describe in their proposal how they will comply with the required Certification and Accreditation. The Contractor shall demonstrate readiness to perform and demonstrate all processes and functions required under the SOW prior to final contract implementation including the disaster recovery test. The Contractor shall provide a certification of readiness, and documentation to support and demonstrate a complete and accurate transition-in.

The Contractor shall inventory, board and take possession and control of all Government Furnished Property including all files, electronic and paper and historical records, for both pooled and non-pooled loans in existing defaulted portfolios to be transferred from Ginnie Mae’s present Master Susbservicer(s).

Transfer costs may include, but are not limited to costs of taking possession of the accounts and custodial files, IT transfers, computer and other system conversion, travel, establishment or transfer of tax service, and custodial release fees or any other charges imposed by the document or funds custodians.

Servicing Requirements

The Contractor shall be prepared to perform the complete range of services expected of a Ginnie Mae issuer. These services include, but are not limited to providing default services, servicing current, delinquent and defaulted loans, including preparation of full insurance endorsement packages and effecting assignments for full insurance benefits on defaulted loans or Real Estate Owned (REO), enforcement and foreclosure services, preparation and submission of claims for FHA insurance benefits, and reports to Ginnie Mae, providing for the conversion of Construction Loan Certificates (CLC) to Project Loan Certificates (PLC) and providing management oversight to projects during the term of the Agreement.

The Contractor shall service the loans comprising the pools and shall pay the security holders of Ginnie Mae guaranteed Mortgage-Backed Securities (MBS) in accordance with Ginnie Mae’s standard Guaranty Agreement and instructions contained in the Ginnie Mae Mortgage-Backed Securities Guide (Guide)

5500.3 and relevant FHA and RHS regulations, and shall perform all functions relating to management of all assets acquired by Ginnie Mae, acting in a fiduciary capacity for Ginnie Mae.

The Contractor shall use generally accepted industry practices in conducting the services to be rendered pursuant to the terms of this contract. The Contractor shall participate in up to two status meetings each year at Ginnie Mae headquarters and participate in other special periodic status meetings if required by the GTR.

If Ginnie Mae’s Reporting and Feedback System (“RFS”) can accomplish this reporting requirement, the contractor shall use RFS.

The Contractor shall reconcile the P&I and T&I custodial accounts with the HUD Form 11710 monthly accounting reports each month. The Contractor shall provide all reports and deliverables required of issuers by the Ginnie Mae Guide during the period of performance.

The Contractor shall advise and make recommendations to Ginnie Mae on improvements in loan servicing to reduce costs, maximize returns, and manage the loan portfolio in accordance with industry best practices.

The Contractor shall furnish to the GTR during the term of the contract such periodic, special, or other reports or information, whether or not provided for herein, as shall be necessary, reasonable, and appropriate in respect to Ginnie Mae in its capacity as guarantor, or otherwise in respect to the purpose of this contract, provided that all such reports or information shall be as provided by and in accordance with applicable instructions and directions issued by the GTR.

The Contractor shall provide to Ginnie Mae semi-annual litigation reports in the form supplied hereto, as of June 30, and December 31. Such reports shall state the case name, briefly describe the nature of the case, where filed and who is representing Ginnie Mae’s interests. The reports will state the ongoing total costs incurred in the separate categories of foreclosures/repossessions, and bankruptcy actions.

The Contractor shall submit the monthly Master Subservicer Accounting and Aging Reports for any loans not reported in a Ginnie Mae pool. The forms must be submitted in the format provided unless otherwise directed by the GTR/GTM. The Contractor may be responsible for any systems programming and accounting work necessary to automate the production of the attached reports. Until automated, the form shall be submitted via Microsoft Excel version 2007 as a spreadsheet on CD-ROM, or current software being used by Ginnie Mae each month for the duration of the contract. The data may also be presented via email.

The Contractor shall provide to Ginnie Mae the Accounting Reports no later than the fifth (5 th ) calendar day of each month, or the next business day if the 5 th is not a business day. If Ginnie Mae’s RFS can accomplish this reporting requirement the contractor shall use RFS.

Upon execution of a new issuer default, and the Contractor determines that available funds in the P&I accounts are not sufficient to make full, timely payment to Ginnie Mae security holders, the Contractor shall notify Ginnie Mae of the amount needed to be advanced on or before the 11 th day of the month by a signed original Form Number MFPR-1 for Ginnie Mae I pools. Ginnie Mae shall wire funds to the P&I Custodian Account (s) in accordance with Ginnie Mae Guide 5500.3, Chapter 15, Section 15-2(A), for the payment of Ginnie Mae I security holders. All money collections, including advances after providing for security holder payments, are to be returned by pay.gov or as directed by Ginnie Mae’s Treasurer’s Office to Ginnie Mae as of the close of business on the 16 th and 20 th of each month. (Time permitting the above will apply i.e., Ginnie Mae might be without Master Subservicer assistance making the first pass through directly).

All Ordinary Expenses relating to the performance of Subservicing responsibilities are included herein.

Ordinary Expenses shall include, but shall not be limited to, general overhead expenses of the Contractor including, without limitation, personnel salaries, equipment and software leases, purchase costs and travel costs relating to the inspection of projects securing the mortgage. The travel costs to be included in Ordinary Expenses shall include a visit per year to each REO or PLC property that secures the mortgage and such additional visits as may be required to adequately service the mortgages.

The Contractor shall submit all ancillary income to Ginnie Mae, including, not limited to, late fees, Transfer of Physical Asset fees, NSF fees, etc. The Contractor shall not offset its fees under this contract from any funds collected on behalf of Ginnie Mae.

The servicing fee for administration of the CLCs shall be the total compensation paid for all normal construction-lending practices for the Federal Housing Administration Program through Final Endorsement and the issuance of the PLC. For the month of conversion from CLC to PLC, the CLC fee shall be paid through the end of the month in which the conversion takes place. The servicing fee for administration of the PLC shall be the total compensation paid for all normal permanent-lending practices as required by the Federal Housing Administration Program, Ginnie Mae and prudent lending practices.

All mortgage papers and documents, tax receipts, insurance documents, foreclosure files and correspondence, current and historical computerized data files and other papers and records of whatever description, whether developed or originated by the Contractor or not, reasonably required to document or to service properly any mortgage being serviced for Ginnie Mae shall be and remain at all times the property of Ginnie Mae. The Contractor shall not acquire any vested interest or property rights.

The Contractor shall notify Ginnie Mae’s Office of Finance within 30 days of receiving a defaulted portfolio of all cash shortages in tax and insurance escrow accounts. When verified, these shortages will be separately funded by Ginnie Mae’s Office of Finance. Until the reconciliation is accepted by the Office of Finance Ginnie Mae will fund shortages on an as needed basis. The Contractor shall not use Corporate Funds to cover shortages in the Tax and Insurance (T&I) Account.

The Contractor shall establish Principal and Interest (P&I) and Taxes and Insurance (T&I) bank accounts in accordance with the Ginnie Mae Master Agreements. (These letter agreements are in the Ginnie Mae Guide). Once these bank accounts are established, Ginnie Mae will transfer P&I and T&I funds from the defaulted Ginnie Mae issuer or prior Subservicer to the Contractor. The Contractor may transfer document custodian files from one document custodian to another document custodian only with prior written approval by Ginnie Mae (GTR/GTM). In accordance with Paragraphs V (A) and (B) of HUD Form 11715 (Master Custodial Agreement), no document custodian shall impose a fee for releasing pool documents if the Master Subservicer elects to relocate the documents within a reasonable period following Ginnie Mae’s declaration of default.

The Contractor shall establish policies and procedures to ensure that P&I and T&I payments that cannot be delivered or are not negotiated timely are deposited into the respective Ginnie Mae defaulted portfolio P&I and T&I account, as appropriate. Explicit policies shall be established which require a diligent effort to locate the payee. Physical payments via postal mail service i.e., Ginnie Mae I remittances to Investors, which remain outstanding for a period in excess of six months of the payment date, must be sent to Ginnie Mae’s Central Paying and Transfer Agent (CPTA) pursuant to the requirements in the Ginnie Mae Guide.

The Contractor shall be responsible for all year-end tax reporting to both the borrowers and security holders unless other parties are responsible as specified in the Ginnie Mae Guide.

The Contractor shall have all required collateral documents held in trust for Ginnie Mae by an approved document custodian pursuant to HUD Form 11715. The Contractor shall transfer custodial documents to an approved custodian with prior written approval by Ginnie Mae. In accordance with Paragraphs VI (A) and (B) of HUD Form 11726, no document custodian should impose a fee for releasing pool documents if the Contractor elects to relocate the documents within a reasonable period following Ginnie Mae’s declaration of default.

All loan or property files held under this contract shall be maintained for a period of 10 years from the date of the Ginnie Mae issuer default. This requirement applies to all loans whether categorized as voluntarily or involuntarily paid or discharged. All pooled and non-pooled loan files shall be transferred when the period of performance of this contract expires.

Default Requirements

When notified by the Government Technical Representative (GTR) or Government Technical Monitor (GTM) of a default of a Ginnie Mae issuer, the Contractor shall effectively work with Ginnie Mae in securing control of the defaulted issuer’s portfolio. Depending on the default, this might entail one or more persons being at the site of the defaulting issuer within 24 hours of notification of the intention to default the issuer. The Contractor shall begin the transfer of the servicing and taking custody of servicing files and electronically-stored information files as soon as possible. The transfer shall be completed as quickly and efficiently as possible, minimizing disruptions to the borrowers. In addition to the transfer of files and electronically stored information, the Contractor shall assume control of the repossession inventory and the accounts in legal status (i.e., eviction notices, loans in default) for meeting all requirements of FHA and RD. The Contractor shall follow the procedures in Ginnie Mae’s Default Management Operating Procedures Manual for Master Subservicer and instructions by the GTR.

The Contractor shall establish Principal and Interest (P&I) and Taxes and Insurance (T&I) bank accounts in accordance with the Ginnie Mae Master Agreements. (These letter agreements are in the Ginnie Mae Guide). Once these bank accounts are established, Ginnie Mae will transfer P&I and T&I funds from the defaulted Ginnie Mae issuer or prior Subservicer to the Contractor. The Contractor may transfer document custodian files from one document custodian to another document custodian only with prior written approval by Ginnie Mae (GTR/GTM). In accordance with Paragraphs V1 (A) and (B) of HUD Form 11715 (Master Custodial Agreement), no document custodian shall impose a fee for releasing pool documents if the Master Subservicer elects to relocate the documents within a reasonable period following Ginnie Mae’s declaration of default.

Ginnie Mae shall cause the defaulted issuer or existing agent and document custodian to release to the Contractor all of its loan files, ledger cards and other records pertaining to the mortgage pools, the registration records and other information with respect to the Ginnie Mae Mortgage-Backed Securities issued for the Mortgage Pools and all records of payment made to the holders of such Ginnie Mae Mortgage-Backed Securities. The transfer of accounts and all records with respect to all P&I and T&I custodian accounts, all other escrow custodial accounts, and all other funds assets. Certificates of Deposit, Letters of Credit, records, and information pertaining to such mortgages and/or mortgage pools shall also be caused by Ginnie Mae and performed by the Contractor. The Contractor shall receive all such property and information for the purpose of performing its duties under this contract.

The Contractor shall prepare and submit to Ginnie Mae a required Initial Default Assessment Report within sixty (60) days of default in order to advise Ginnie Mae of the preliminary status and condition of the loans/pools. This report shall identify the following: loan delinquencies, final certification status, title issues, foreclosures, and bankruptcy and litigation issues and other matters of interest to Ginnie Mae.

The Contractor shall assist with the transfer of P&I accounts of defaulted issuers to Ginnie Mae for reconciliation. Upon application for such P&I funds as needed by the Contractor, Ginnie Mae will transfer such funds to the Contractor.

The Contractor shall transfer each portfolio from a defaulted issuer within 5 business days of default seizure. The allowable, allocable and reasonable costs for the transfer include, but are not limited to, costs of taking possession of the accounts and custodial collateral files, ADP transfers, computer or other system conversion, travel (including transportation and lodging), shipping costs, transfer of tax service, and custodial release fees or any other charges imposed for releasing pool documents within a reasonable period following Ginnie Mae’s declaration of default.

The Contractor shall conduct a review on an expedited basis of the files and records received from the defaulted issuer and those documents held by the Ginnie Mae custodian with respect to the pools, and the financial information received by Ginnie Mae from the Contractor shall quantify Ginnie Mae’s cash shortages and potential losses resulting from the defaulted issuer’s actions, error or omissions. The Contractor also shall ascertain the status of the loans and pools begin stabilizing the loan servicing, loan administration, and foreclosure/REOs. Identify any missing or defective documents or items, and take the necessary steps to correct all defects.

The Contractor shall re-certify within 12 months of default all pools not final certified or re-certified at the time of transfer, unless otherwise directed by the GTR/GTM.

Portfolio and Loan Sale Support:

Ginnie Mae reserves the right, at any time, in its sole discretion, to offer the mortgage servicing rights, whole loans or other assets for sale in all or any part of its acquired portfolios. The Contractor shall assist and cooperate with Ginnie Mae in the transfer of the mortgage servicing rights, whole loans or other assets to any purchasers. Ginnie Mae will not pay the Contractor a transfer fee or other sale fees. The Contractor shall assist Ginnie Mae (including any financial advisors retained by Ginnie Mae) in these sales without any additional compensation other than payment under this line item. The assistance may include but is not limited to:

Providing computer-based- ad-hoc reports or files from the servicing system

Providing a contact person able to request and provide reports needed

Providing relevant computer tapes and standardized reports

Making available servicing files for due diligence reviews

Assisting in the actual servicing transfer

Providing security holder registers, records, terminals and facilities

Other related assistance necessary for a successful sale

Title Fees

Attorney Fees

Eviction Fees, Court Costs, Sheriff’s Fees

Damage Repairs

Mailing Fees

Photos

Yard Maintenance

Padlocks

Lawn Service

Support Services

The Contractor shall, from time to time be required to provide Ginnie Mae with support services that are outside of its normal servicing duties. Such assistance might include, for example, reviewing collateral files to determine whether an uninsured loan may be corrected and resubmitted for insurance, to pursue the restructuring and re-pooling of a troubled loan, and unusual support for litigation or other legal actions pertaining to the serviced portfolio or multifamily servicing in general (i.e., acting as an expert witness).

All efforts under this item must be pre-approved

Extraordinary Expenses

“Extraordinary Expenses” include expenses incurred by the Contractor in connection with the performance of Subservicing responsibilities other than “Ordinary Expenses” that are customarily incurred during the normal course of loan servicing operations. “Extraordinary Expenses” shall include, but shall not be limited to, costs associated with correcting any defects in the records or files of the Mortgages, enforcing on behalf of Ginnie Mae remedies under the documents evidencing and securing the Mortgage Loans, Letter of Credit transfer fees charged by issuing banks, recording costs, transfer fees and taxes, Mortgage, intangibles and recording taxes, security for protection of assets, receiver and trustees’ fees, appraisal costs, environmental studies, insurance, litigation and travel costs for problem assets beyond site visits included in “Ordinary Expenses” as described above. All efforts under this item shall be requested using appropriate means, and must be pre-approved.

Disaster Recovery

Notwithstanding the foregoing requirements above, in the event of a disaster that renders the Contractor’s primary office space uninhabitable, the Contractor shall resume operations within 4 hours. The Contractor shall ensure that there are personnel that can perform the business operations at the back-up location(s) or remotely.

TASKS

The Contractor shall:

Implement and maintain a detailed Disaster Recovery Plan (DR) that outlines the steps and communication strategy necessary to ensure that all work under the Statement of Work (SOW) continues uninterrupted.

Deliver the Disaster Recovery Plan within 30 days of contract award. Prior to implementation of the new award the Contractor shall fully test and pass the Disaster Recovery requirements according to NIST or perform tests acceptable to the GTR.

Maintain and operate the disaster recovery site or sites or submit a plan showing capability acceptable to the GTR with guidance from the CIO.

Develop and perform a semi-annual testing of the DR plan. Once testing is completed, communicate any deficiencies, mitigation and timelines for corrections in the plan to Ginnie Mae.

Provide the necessary human resources, facilities (work site, hardware, software, peripheral equipment, line charges, etc) and backup power sources to maintain and operate the DR site or sites with remote capability to ensure continued operations in the normal course of performing this SOW.

Participate in COOP drills as called for by Ginnie Mae.

Continuity of Operations Plan

Executive Order 12656 of February 1996, the Computer Security Act of 1987 and Office of Management and Budget (OMB) Circular A-130 mandate that Continuity of Operations Plans (COOP) exist for all U.S.

Government operations. COOP planning develops strategies for short and long term planning, contingency and continuity planning to restore Ginnie Mae’s mission critical business operations within four (4) hours after disruption and sustain operations for 30 days or longer after disruption due to crisis or disaster.

TASKS

Accordingly, the Contractor shall:

Provide Ginnie Mae with its detailed COOP plan that outlines the steps and communication strategy necessary to ensure that all essential business functions under the contract proceed during a COOP event.

Maintain the COOP capability as defined by Federal Preparedness Circular 65 issued June 2004, and all other applicable laws and directives issued by Homeland Security and other federal mandates.

If a COOP event occurs, the Contractor shall:

Resume business functions within four (4) hours of the event from the COOP site.

Maintain the required documentation, vital records and systems to support the business functions for the remainder of the contract term f until normal business operations cannot be resumed.

Update and deliver to the GTR/GTM the COOP Plan within the first month of contract award and annually thereafter.

Federal Information Technology Security

TASKS:

Maintain IT security and comply with all terms and conditions of the contract throughout the term of the contract with respect to all data and information technology requirements.

Use, maintain, enhance, develop, and upgrade all information technology (hardware, software, and connectivity) and System Documentation under this contract in accordance with Federal Laws, best practices, and regulations. This includes, but is not limited to the Federal Information Security

Management Act, the Clinger-Cohen Act, the Government Paper Reduction Act, the Government

Paperwork Elimination Act, Office of Management, and Budget Circulars A-130, A-127, and A-123, Department of Housing and Urban Development regulations, Handbooks and Policies, applicable

Ginnie Mae Handbooks and Policies, and procedures now and in the future.

Maintain Certification and Accreditation (C&A) standards by NIST when directed. (An independent

C&A will be performed by Ginnie Mae during the period of performance of this contract.)

In addition to the specific statutes and regulations cited, the Contractor shall use, maintain, enhance and upgrade all information technology under this contract in accordance with applicable Federal laws and regulations, applicable Department of Housing and Urban Development regulations and policies, applicable Ginnie Mae handbooks, policies and procedures and best commercial practices with regard to information technology.

Continue to perform all information technology work under this statement of work including any current and new applicable statutes, regulations, policies or guides as they evolve over the term of the contract.

Follow the Department of Housing and Urban Development’s (HUD’s) System Development

Methodology (SDM) and industry best practices in the analysis, design, development, testing and implementation of proposed new systems and/or the enhancement to existing systems. Exceptions may be granted by Ginnie Mae’s Chief Information Officer (CIO) if the Contractor’s methodology is more advanced or adds additional benefits that may be beneficial to Ginnie Mae.

Review and update system documentation to ensure accuracy, compliance and completeness.

Required Information Technology Labor Descriptions Information System Security Officer (ISSO)/Security Engineer

Provide an individual that will be the subject matter expert on information technology security and NIST compliance. This skill set serves as the point of contact for this contract on Federal IT security requirements, including but not limited to the implementation and development of GFP and non GFP which utilizes government furnished information. This individual will be responsible for the administration, development and execution of all IT security. This individual should have 4-5 years hands on experience in working with IT security, policies and Industry Best Standards for data and information management resources. The individual should possess some familiarity with federal IT Security laws and regulations including NIST, OMB A130, OMB A127, etc. This person may have one or more of the following credentials:

Certified Information Systems Security Professional (CISSP) from Information Systems

Security Certification Consortium (ISC)

Certification and Accreditation Professional (CAP) from (ISC)

Certified Information Security Manager (CISM) from Information Systems Audit and Control

Association (ISACA)

DEFINITIONS

ACH: Automated Clearing House.

AE: Account Executive

Bank Letter: Document sent to the issuer's financial institution informing the institution of the issuer's default and requesting that the name of the issuer's Ginnie Mae accounts be changed to reflect Ginnie Mae as the sole proprietor.

Basis Point: One one-hundredth of one percent.

Certificate of Eligibility: A document issued by the Department of Veterans Affairs, which verifies a veteran's eligibility for a VA mortgage guarantee.

Clearing Account: A bank account used by a mortgage servicer for temporary, short- funds prior to transmittal. Examples of these accounts are collection clearing and disbursement clearing accounts.

Collection: The servicing procedure followed by the mortgagee to bring a delinquent mortgage current and to file the required notices to begin foreclosure when necessary.

Convey: The act of transferring title or ownership from one party to another.

CPTA: Central Paying and Transfer Agent

Default: Any breach outlined in Article 10 of the Guaranty Agreement

Default Manual: An internal Ginnie Mae procedural guide used during the preparation, execution and follow-up of an issuer default.

DMOP: Default Management Operating Procedures.

Document Custodian: The financial institution, which holds the documents relating to the pooled mortgages on Ginnie Mae's behalf.

Document Custodian Letter: Letter sent to the defaulted issuer's document custodian informing the custodian of the issuer's default and requesting that only Ginnie Mae or its representatives be allowed access to the issuer's files.

DP: Data Processing.

Factor: The eight digit decimal, calculated monthly by Ginnie Mae, that is a proportion relating to the current outstanding principal balance of the securities to the original principal balance at the time the security was originally issued.

FHA: Federal Housing Administration, an office of the Department of Housing and Urban Development. FHA provides mortgage insurance for residential mortgages.

Foreclosure: A legal procedure in which a mortgaged property is liquidated to pay the outstanding debt in case of default.

Force Placed Insurance: Property insurance that is placed by the lender on the borrower's property when there is no proof of insurance on the property. The property insurance premium is billed to the borrower.

Form HUD 11709: Letter Agreement for Servicer’s Principal and Interest Custodial Account.

Form HUD 11710A: Issuer's Monthly Accounting Report.

Form HUD 11710D: Issuer's Monthly Summary Report.

Form HUD 11710E: Liquidation Schedule.

Form HUD 11715: Custodial Agreement.

Form HUD 11716: Summary of Guaranty Agreement - Single Family (Level Payment).

Form HUD 11720: Letter Agreement for Servicer's Escrow Custodial Account.

FRC: The Field Review Contractor responsible for conducting annual field reviews, special field reviews, and on-site default procedures including reconciling portfolios, and gaining control of cash and other monetary accounts.

Ginnie Mae Advances: Funds advanced by Ginnie Mae, which shall be equal to the amount required to satisfy Ginnie Mae security holders minus funds actually available for a specific monthly payment.

Ginnie Mae I: A mortgaged-backed securities program in which individual mortgage lending firms issue securities and pass principal and interest payments directly to the security holders, whether or not the mortgagor makes the monthly payment. Ginnie Mae mortgage-backed securities are backed by the “full faith and credit” of the U.S. government.

Ginnie Mae II: A mortgaged-backed securities program in which pools of loans from several lenders are combined into a single issue of securities. A central paying agent passes principal and interest payments directly to the securities holders. Ginnie Mae II pools are generally larger than those formed by individual lenders under Ginnie Mae I. Ginnie Mae mortgage-backed securities are backed by the “full faith and credit” of the U.S.

government.

Ginnie Mae Guide: Ginnie Mae Mortgage-Backed Securities Handbook 5500.3

GPADS: Ginnie Mae Portfolio Analysis Database System

Guaranty Agreement: The guaranty agreements provide for the timely payment by issuers to registered security holders of principal and interest. In the event that an issuer fails to make such timely payment, or otherwise defaults, Ginnie Mae will continue such payments to registered securities holders.

LGC: Loan Guaranty Certificate

Master Subservicer: Ginnie Mae contractor capable of expeditiously assuming the role of

Subservicer Contractor when Ginnie Mae either places an issuer in default or transfers its existing portfolios. The Master Subservicer's role is to perform the complete range of services expected of a company servicing its own portfolio.

MERS: Mortgage Electronic Registration System

MIP: Mortgage Insurance Premium paid to FHA is a continued condition of FHA insurance

Mortgage Pools: A collection of loans of similar nature which are used to back a security which is then sold in the secondary market.

Mortgages: Those loans secured by mortgages which back the Mortgage Pools, including all documents evidencing and/or securing such loans and all documents in connection with the administration and servicing of such loans and, in those instances where the security for such loans has been or is acquired through a foreclosure or deed in lieu of foreclosure, all real property and personal property which was or is received in any enforcement action with respect to such loans.

Pass-through: Passed through securities or payment

PIH: Public Indian Housing office within the U.S. Department of Housing &

Urban Development

Pool: An assemblage of loans brought together to back an issuance of security.

Portfolio: The collection of loans held for servicing by an issuer or a Master

Subservicer.

Power of Attorney: A legal document authorizing one person to act on behalf of another.

Principal and Interest Custodial Account (P&I): The non-interest bearing account that an issuer maintains with a financial institution, by letter agreement HUD Form 11709, into which account the issuer deposits principal and interest collected from individual mortgagors for loans included in Ginnie Mae pools.

Principal Losses: That amount, over and above the proceeds from the sale of a foreclosed property, required to equal the remaining principal balance of the mortgage related to the foreclosed property.

RD: Rural Development office within the U.S. Department of Agriculture

Real Estate Owned (REO): Property a lender or a Subservicer acquires as the result of foreclosure.

Reconciliation: A review performed by the Master Subservicer and the Field Review

Contractor during a default to determine the extent to which P&I and T&I shortages exist.

RFS: Ginnie Mae reporting feedback system.

Securities Holder Register: An official listing, maintained by the issuer, of the history of registered holders of all certificates for which the issuer has responsibility for payments.

Security Holders: Any legal entity which is the owner of mortgage-backed securities issued under the Ginnie Mae mortgage-backed securities program.

Servicing: A function which includes the receipt of payments, customer service, escrow administration, investor accounting, collections, and foreclosures.

Servicing Fee: The fee paid to the Master Subservicer for the complete range of loans servicing activities provided under the contract.

SF: The designation for a pool or loan package consisting of eligible single family loans.

Taxes and Insurance An account that an issuer maintains with a financial institution by Custodian Account (T&I): letter agreement, HUD Form 1120, into which account the issuer places funds to be used to pay real estate or personal property taxes and hazard insurance premiums on the property pledged as collateral for the loans.

TIR: Transfer of Issuer Responsibility. i.e., transfer from a defaulted issuer to Ginnie Mae designated issuer number.

VA: Department of Veterans Affairs and its predecessor, the Veterans

Administration

Power-Of-Attorney

To enable the Contractor to perform its duties, Ginnie Mae will designate and appoint the Contractor as its agent and grant to the Contractor Power of a Limited Attorney.

Upon receipt of the proper Ginnie Mae Limited Power of Attorney the Contractor shall take all steps necessary to confirm or record Ginnie Mae’s ownership of the loans, including the correction of title defects and transfer to/from Mortgage Electronic Registration System (MERS), if applicable. All reasonable and necessary third party costs associated with protecting Ginnie Mae’s security interest shall be the responsibility of Ginnie Mae. In addition, where assignments to Ginnie Mae do not exist, the Contractor shall prepare and record assignments in Ginnie Mae’s name. (Power of Attorney)

Confidentiality

In order for a Contractor to fulfill the contract effectively, it may be necessary for it to have access to confidential information concerning another entity. The Contractor agrees to treat any and all such information as strictly confidential. Any such confidential information shall not be disclosed to the public, including the Contractor’s clients or customers other than Ginnie Mae, except to the extent it is appropriate for the Contractor to do so (i) in working with legal counsel, auditors, other advisors, taxing authorities or other government agencies, or (ii) when required by any law, regulation, ordinance, court order or subpoena.

The Contractor agrees not to use or permit use of confidential information obtained as a result of the contract for private gain for itself or any other person by direct action on its part or by counsel, recommendation of all potential remedies.

SUMMARY OF PRODUCT DELIVERABLES

SOW-Reference Deliverable Description

Delivery Date Number of Copies Recipient

Servicing Requirements

Portfolio Status Report

Monthly 1 paper copy and/or email GTR/GTM

COOP COOP Plan Within 30 days of contract award and annually thereafter

2 paper copies and One electronic copy (CD Rom, Microsoft word compatible) and /or email

GTR/GTM and

CIO

Review of Estimation Process

Within 6 months of takeover of a portfolio and every 6 months thereafter

2 paper copies and/or email

GTR/GTM

Reviews of files and records

Within 30 days of the default

2 paper copies and/or

Ginnie Mae Accounting Reports th calendar day of each month or next business day if the 5 th is not a business day

One electronic copy (CD Rom, Microsoft word compatible) copies and/or email

Office of Finance

Litigation Reports Semi-Annual June 30, and December 31

2 paper copies and/or email

GTR/GTM and Office of General Counsel

Periodic, Special or other reports or information

Upon request TBD – May be paper and/or electronic five copies or less and/or

Disaster Recovery

Disaster Recovery Plan

Within 30 days of contract award and annually thereafter

2 paper copies one electronic copy (CD Rom, Microsoft word compatible) and/or email

CIO

Final Certification To be determined by GTR 1 paper copy and/or email CPTA

Ginnie Mae Advances Ginnie Mae I

Ginnie Mae I: 11 th of every month.

One paper copy each and/or email

Default Services Paragraph 2

Collection – Ginnie Mae I th day of each month One paper copy and/or

Default Services Paragraph 2

Collection – Ginnie Mae II th day of each month One paper copy and/or

Provide your company’s name and address; size of company (number of personnel, finances, small or large business (8(a), etc.) and point(s) of contact (Name, Phone Number, Address, email, etc.).

Identify the location of the facility you would propose to perform the work.

Interested parties please submit: 1 electronic and 2 hard copies to the point of contact listed.

Contracting Office Address:

451 7th Street S.W.

Washington, DC 20410

United States

Primary Point of Contact:

Gina E. Lassiter, Contract Specialist

Gina.E.Lassiter@hud.gov

Phone: (202) 402-3997

Secondary Point of Contact:

James D. Mills, Contract Specialist

James.D.Mills@hud.gov

Phone: (202) 402-7102 mailto:Gina.E.Lassiter@hud.gov mailto:James.D.Mills@hud.gov