Mortgage Loan Services

The County of Volusia, Florida Community Assistance Division is soliciting proposals for mortgage loan servicing for its affordable housing portfolio, with proposals due August 19, 2026. The servicer will manage an existing portfolio of approximately 58 active amortized loans funded through federal and state grant allocations, with anticipated portfolio expansion based on future affordable housing funding. Federal funding triggers Section 3 requirements under the Housing and Urban Development Act, mandating that at least 25 percent of total labor hours be performed by Section 3 workers and at least 5 percent by targeted Section 3 workers; contractors must submit monthly Section 3 activity reports by the 10th of each month and a final cumulative report upon project completion.

The scope includes loan payment processing and accounting, borrower communication and outreach, delinquency management and loss mitigation, compliance monitoring to ensure borrowers maintain primary residence status, financial reporting, and portfolio analysis. The servicer must establish a local or regional office accessible to borrowers, provide toll-free customer service with extended hours, maintain comprehensive loan servicing records, and implement quality assurance procedures. Monthly accounting statements, quarterly delinquency reports, and annual portfolio analyses are required. The servicer must demonstrate experience in federal and state loan servicing programs, maintain appropriate licensing and bonding, and possess adequate staffing and technology infrastructure. The contract is funded through federal and state allocations, with compensation detailed in Exhibit B – Fee Schedule structured around new loan account setup fees and monthly per-loan servicing rates.

The contract term is three years commencing upon execution, with two subsequent one-year renewals or one subsequent two-year renewal permissible upon mutual written agreement. The County retains the right to audit contractor records for five years following contract completion. Termination by the County requires thirty days' prior notice; the contractor requires one hundred eighty days' prior notice. The servicer must maintain general liability insurance with minimum coverage of $1 million per occurrence and $2 million aggregate, professional liability insurance with minimum limits of $1 million, errors and omissions coverage, workers' compensation insurance per Florida statute, and cyber liability or data breach insurance. All policies must name Volusia County as an additional insured and maintain ratings of at least A– VII from A.M. Best. Contractors must complete and submit required attachments including MWBE Report, Section 3 Certification, Human Trafficking Affidavit, Reporting Requirements Acknowledgment, and Prime/Subcontractor Form disclosing all subcontractors and their respective work percentages.