Attachment 3 - Questions and Responses

Attachment 3 Questions/Responses

Solicitation R-OPC-23289 Single Family Master Subservicer

QUESTION RESPONSE

Are you looking to outsource this to one vendor handling the entire process or a select few working on parts of the process?

Ginnie Mae is looking to do Multiple Awards

What is the number of loans in the portfolio? 5,356.00 What is the loan breakdown by fixed rates or ARMS for forward mortgages? (Fixed Rate - 5,321) (Arm - 35)

What is the number of HECM loans? Zero What is the number of loans by type FHA, VA, RDA and PIH? (FHA - 4,383) - (VA - 946) - (RDA & PIH-Zero) What is the number of loans delinquent, 30,60, 90 and greater than 120 days?

(30 days - 402) (60 days - 202) (90 days - 89) (120 and greater - 296)

How many loans are escrowed? Escrowed Loans - 5,343

What is the number of loans in Bankruptcy, by chapter? Chapter 7 - 30 loans Chapter 13 - 114 loans

What is the number of loans in Foreclosure? Foreclosure - 369 loans

What is number of REO loans? Reo - 289 loans

What is the number of loans in pools and in non-pools? (In pools - 4, 897) (Out of pools - 459)

Will tax service information, such as, parcel number, property description, etc. per loan be provided to the new contractor in an electronic data format? Yes What is the number of loans acquired during the previous six defaults? How many of those loans were the servicing rights sold? How many loans did the current contractor retain?

Approximately 6,000. No loans were sold. The Contractor retains all loan files.

Does Ginnie Mae have any potential issuers on the watch list? Yes How many document custodians are involved with the portfolio now? Countrywide Bank, U.S. Bank, U.S. Bank & Trust

What is the volume of loan files active and inactive that would be transferred to the new servicer for storage? Page 11, Tasks. (In pools - 4, 897) (Out of pools - 459)

Will Ginnie Mae accept the monthly accounting reports electronically since the reports are due on the fifth (5th) calendar day of each month? Page 12, #2 Tasks

Hard copies forms are not acceptable. The monthly accounting reports are submitted electronically.

Solicitation R-OPC-23289 Single Family Master Subservicer

QUESTION RESPONSE

The new servicer would be responsible for year-end report.

Would this include the previous servicers loan records, including their closed accounts? Page 13, # 3 Tasks Yes

How many loans are not certified or need to be re-certified?

Page 13, #5 Task

Pools not Certified: Approximately 1,660 and Pools needs to be recertified: Approximately 1,267

Do loans purchased out of the pool remain whole loans to Ginnie Mae, or would the servicer be required to repool if possible? Page 13, #7, Tasks

They would be classified either Whole Loan Foreclosures or Whole Loans. Ginnie Mae is contemplating about the pooling loans with loss mitigation activities. If appropriate volume levels are obtained.

Any missed deadlines from the previous servicer would not be the responsibility of the new servicer? Page 14, Asset Management, Task Yes If Ginnie Mae assigned the loan to the servicer, due to litigation, would Ginnie Mae indemnity the servicer for all legal expenses, as well as recording cost? Page 15, Assignment to the Contractor Yes

How many accounts have life & disability insurance?

Liability & Disability Insurance - 242 loans and No Insurance - 5,114 loans

Are all of the defaulted loans that are serviced by current contractor assigned to the contractor or Ginnie Mae? And will Ginnie Mae require new assignments to be completed to the new contractor? Page 11, Tasks 9, last two sentences.

The loans are assigned to the Contractor. New Assignments

- Refer to Default Services under Task 11 - The Contractor shall take all steps necessary and appropriate to confirm or record Ginnie Mae's ownership of the loans. However, note that the loans that enter into foreclosure are foreclosed in the name of the Contractor.

What's the principal balance on the entire portfolio? $282,795,017.72

What's the total number of loans referred to Treasury? Zero

What are the existing balances available, by Issuer for filing HUD claims?

Total loans pending a claim from HUD is 40 (These are loans that have received Part A funds and are pending Part B).

How many credit bureaus are required for reporting? N/A

Is it anticipated that FHA Secure loans will be serviced under this servicing contract?

If a FHA secure loan is part in a defaulted issuer portfolio, the contractor would be responsible for servicing these loans.

Solicitation R-OPC-23289 Single Family Master Subservicer

QUESTION RESPONSE

What is the average balance per loan of the existing $425 million portfolio, (Page 7, Background)?

a. What is the average P& I, T&I and escrow balance?

b. What is the loan count? c.

What is the average unpaid principal balance?

d. What are the WAC and WAM?

As of June 2004 through December 2007 there were 9, 319 loans in the portfolio. The remaining number of loans in the portfolio is 5,356. See Attachment for WAC and WAM.

What is the delinquency profile of the portfolio (Page 7, Background)?

(30 days - 402) (60 days - 202) (90 days - 89) (120 and greater - 296)

In trying to maintain continuity with the portfolio and customers, it is important to know how soon after the portfolio has been transferred to the contractor that the portfolio would be first considered for sale (Page 7, Background).

Ginnie Mae's policy is to sell loans as soon as possible after acquiring defaulted issuers and the portfolio has been stabilized.

The RFP states that Ginnie Mae will not pay the Contractor a transfer fee or other sales fees (Page 11Portfolio Sales and Support). How will the fees associated with a transfer be paid, for example: a. Notifications/mailings to customers, insurance companies, etc.

b. Excessive requests for ad hoc reporting from the purchaser of the servicing c. Transfer of files, shipping, etc.

Ginnie Mae will not pay Contractor a transfer fee or other sales fees. However, Ginnie Mae on a case by case basis will consider extra ordinary or excessive fees in connection with a portfolio sale under CLIN 0005 and/or 00007.

Within the Transition In (Page 8 CLIN 001) Tasks section, the RFP states “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 within the six month transition period. Ginnie Mae will conduct this certification and accreditation .” Please provide more details and background information on this particular requirement and process.

GNMA will provide Certification and Accreditation (C&A) for the contractor site based on OMB A-130 and NIST Special Publication 800-37. The C&A will conduct both onsite and offsite inspections to insure that the physical (i.e. building, air conditioning) and computing environment (i.e. network, data access,) are adequate. During the C&A the physical and computing security controls are evaluated to insure adequate protection for GNMA operations and assets and establish an acceptable level or risk. Link:

http://csrc.nist.gov/publications/nistpubs/index.html

The RFP states that there is a requirement that operations are recovered within 4 hours of a DR event (Page 17 “…in the event of a disaster that renders the Contractor’s primary office space uninhabitable, the Contractor shall resume operations within 4 hours. ”). Please provide a definition of Ginnie Mae’s intent in reference to the “operations” to be recovered within that time frame.

In order to provide adequate service to GNMA customers it is incumbent upon the contractor to provide in the event of a disaster the necessary resources (personnel and equipment) within a 4 hour window that will restore GNMA to a full business capability.

Solicitation R-OPC-23289 Single Family Master Subservicer

QUESTION RESPONSE

The RFP also mentions compliance with HUD’s System Development Methodology (SDM ) (Page 18 INFORMATION TECHNOLOGY – Federal IT Security .Please provide any additional information or references on

SDM.

The HUD SDM security references are based on The FISMA.

All HUD development activities must follow at a minimum NIST 800 documents: 12, 14, 18, 30, 37, 53, 60, and 64 and

FIPS 199.

The RFP states that HUD PIV (NIST Personal Identity Verification) (Page 61 2452.239-70 ACCESS to HUD SYSTEM Cards will be required for any of our employees who will need to access HUD systems as part of the overall servicing activities. Please provide more information regarding the PIV Card requirements will eventually be needed.

The Homeland Security Presidential Directive-12 states that all government personnel shall replace current government ID's with a PIV. The PIV contains verifiable personal information that allows certified government individuals access to HUD facilities and access to HUD systems and information.

How flexible is the six month timeframe requirement for HECMs (page 7 Background)?

Within the six month time frame of HMBS approval, the contractor has to physically service the loans. However, they can subcontract out the investor reporting.

What is the average loan size estimated for the $10billion that contractor has to maintain capacity and readiness for (Page 11 Contract Services (CLINS 0002, 0102, 0202) ? $111,615

Can the Contractor service HECM loans without being an approved HMBS Issuer?

Yes, they may subcontract certain investor reporting functions

Is there a formal approval process or HECM I.D. number requirement to be an approved HECM loan servicer? Yes Will there be any preference in the evaluation process given to an Offeror that is an HMBS Issuer over an Offeror that is not? No Section B - CLIN 3 Not To Exceed Amount, which amount should be included in the total evaluated price, our proposed price or the NTE amount?

Section B, CLIN 3 Default Services. Contractor is to provide proposed price and the NTE amount is to be included.

Section B, CLIN 4 Loan Servicing - Please clarify are we to enter a 12 Month fee in the Unit Price or a monthly fee, and reflect the 12 month fee in the total.

Section B, CLIN 4 Loan Servicing. Contractor is to provide the monthly fee and reflect the 12 month fee in the total.

Section B - Contract Services - will this amount be paid each month regardless if the contractor has loans to service or is this a minimum charge that will be paid for the contractor to be prepared to service loans? Please Clarify.

Section B, Contract Services. Contractor shall be paid by the number of loans serviced after proper submittal of invoice by contractor to HUD.

Section B - CLIN 5 Asset Management - Are we to insert any amounts or is the NTE amount to be included in the total evaluated price?

Section B, CLIN#5 Asset Management. Contractor is to provide proposed price and the NTE amount is to be included.

Solicitation R-OPC-23289 Single Family Master Subservicer

QUESTION RESPONSE

Section B CLIN 6 Legal Services- Please confirm contractor will be paid for all legal hours at rates proposed?

Section B, CLIN # 6 Legal Services. Contractor will be paid for all legal hours at rates proposed after proper submittal of invoice by contractor to HUD.

Section L suggests that Past Performance Survey forms should be submitted by contractor references, however we haven't been able to locate a form and there are no instructions regarding this requirement. Can you please clarify? Survey forms are posted within this amendment.

Section M Factor 2 mentions submission of contract past performance reports, this action is typically not a practice followed by the private sector and what if none of our clients have provided us past performance reports? Can you please clarify how that will impact our evaluation?

Contractor please defer to FAR 52.212.2 Evaluation - Commercial Items (Jan 1999) and Factor 2 Past Performance information.