Escrow Services

The U.S. Department of Agriculture, Rural Development is issuing a Sources Sought Notice to identify qualified vendors capable of providing nationwide escrow sub-servicing for its Direct Single-Family Housing (Section 502 Direct) loan portfolio. This market research notice is not a formal solicitation and carries no commitment to award a contract; rather, it is intended to gather information about market capabilities and identify potential sources for future procurement. The government seeks comprehensive escrow services including tax line establishment and payment processing, insurance administration, escrow analysis and annual disclosures, loss claims processing, property inspections, flood determination monitoring, call center operations, and program management support. Key qualifications include the ability to manage approximately 132,000 loans nationwide, implement a toll-free call center with specified availability (Monday-Friday, 6:00 a.m. to 6:00 p.m. Central Time), achieve stringent performance standards such as 60-second average speed to answer for call center inquiries and 99% document opening/acknowledgment within two business days, and designate key personnel with substantial experience including a Project Manager with 15+ years of comparable contract management experience, Chief Legal Counsel with 10+ years of real estate law experience, and other senior staff. Written responses must be submitted electronically to Sora Jung and Lawanda Henry by 12:00 PM ET on May 7, 2026, and must be limited to 15 pages addressing 30 detailed questions covering experience, technology capabilities, system integration, portfolio onboarding, transition experience, and operational capabilities.

This opportunity carries no set-aside designation and involves no identified current incumbent contractor. The notice does not provide a specific contract award value, though the scope encompasses an escrow portfolio representing approximately 132,000 loans with 105,600 borrowers across all 50 states and U.S. territories, with approximately 96% of the portfolio requiring escrow services for real estate taxes and insurance. The government expects approximately 4,000 new loan originations annually that would require escrow services integration. Implementation is anticipated to be completed within 180 calendar days after contract award, with the contractor required to establish escrow services within three calendar days of loan origination notification and meet strict disbursement timelines including tax payments 21 days prior to due dates and insurance premiums 14 days prior to renewal. All personnel must complete Public Trust clearance, and the contractor must comply with 7 CFR Part 3550, USDA Handbook HB-2-3550, and applicable federal regulations including RESPA requirements. The contractor will bear liability for tax penalties, interest, loss of discounts, real estate forfeiture due to tax nonpayment, and losses from failure to maintain required insurance coverage.