VA Loan Servicing

The Department of Veterans Affairs Strategic Acquisition Center Frederick is soliciting Portfolio Loan Servicing Contract services for the VA Loan Guaranty Service with a draft solicitation posted October 13, 2026, and questions due October 27, 2026, by 1:00 PM EST; the formal solicitation release date is to be determined. This is an unrestricted procurement with no set-aside, estimated at $28.5 million for a base period spanning FY27 through FY28 plus four one-year option periods.

The contractor must service VA's national loan portfolio of approximately 73,150 loans totaling $11.86 billion in unpaid principal balance. Services include non-default and default servicing, foreclosure management, loan termination, document custodian services, loan accounting, and optional loan sale assistance. The contractor must originate vendee loans within 30 days, maintain 24-hour borrower account access, support 125 concurrent VA users through an integrated information management system, interface with VA's iFAMS financial system via daily batch file submissions, and maintain minimum $50 million in corporate funds or line of credit for advances.

Key requirements include compliance with all federal loan regulations (TILA-RESPA, FCRA, FDCPA, SCRA), offshoring prohibitions for all VA sensitive and personally identifiable information, fidelity and errors/omissions insurance, and comprehensive project management and quality control plans. Designated key personnel must include a PMP-certified Project Manager with 10+ years experience, Operations Manager, Servicing Manager, Default Servicing Manager, National Loan Origination Sales Manager, and Data Analytics Lead.

Small business subcontracting goals total 13% Small Business, 10% Service-Disabled Veteran-Owned Small Business, 10% Veteran-Owned Small Business, 1% HUBZone, 5% Small Disadvantaged Businesses, and 3% Women-Owned Small Businesses. The contracting officer is Won Chae (Won.Chae@va.gov). Payment is by Electronic Funds Transfer to the VA Financial Services Center in Austin, Texas, via Tungsten e-Invoice system or X12 EDI format.