REQUEST FOR INFORMATION MARKET RESEARCH Secretary Held Loan Servicing The U.S. Department of Housing and Urban Development (HUD) is conducting Market Research in accordance with FAR Part 10. THIS IS A REQUEST FOR INFORMATION NOTICE ONLY. This is not a request for offers, quotes or proposals. This notice does not represent a commitment by the Government to issue a solicitation or award a contract. This is a market research tool only to determine the capability of potential sources. No reimbursement will be made for any costs incurred and/or associated with providing information in response to this REQUEST FOR INFORMTION or any follow-up information. Contractors shall not submit proposals, quotes, or bids in response to this request. The Department of Housing and Urban Development (HUD) is contemplating establishing a contract(s) to provide Secretary Held Loan Servicing under NAICS Code(s) 522390 Other Activities Related to Credit Intermediation, Small Business Standard is $20.5 Million; PSC Code is R408 Program Management/Support Services. This Request for Information is issued in order to solicit responses from capable sources. Teaming arrangements and joint ventures may be considered for any subsequent procurement based on the Government's market research and compliance with Federal Regulations and the Small Business Administration. Background: The Federal Housing Administration (FHA), that provides homeownership opportunities for first time homebuyers as well as borrowers who, because of limited income or impaired credit history, are under-served by conventional mortgage markets. FHA insures approved lenders against the risk of loss on loans they finance for the purchase, and in some instances, rehabilitation of single-family homes. Although primarily a mortgage insurer, FHA has occasion to become the holder of primary and subordinate mortgages as a result of its loss mitigation program, in conjunction with the discounted sale of foreclosed real estate, through assignment of HECM mortgages as well as other specialized loan programs. FHA Insured HECM loans, commonly referred to as reverse mortgages, are designed to enable elderly homeowners to convert the equity in their homes to monthly streams of income and/or lines of credit. To guarantee continued payments to the borrower, should the lender fail to make the required payments, a second mortgage in HUD's name is executed and recorded subsequent to the first mortgage. FHA Assigned HECM loans are FHA insured first mortgage loans that were assigned to HUD for continued loan servicing for the life of the loan. Before acceptance of assignment of the first mortgage, HUD ensures that there is clear title from the lender to HUD and that specific criteria have been met. Description of Services: The Servicing and Loss Mitigation Division (aka The National Servicing Center or NSC), a Headquarters' division within the Office of Single Family Asset Management (OSFAM) at the U.S. Department of Housing and Urban Development (HUD), is seeking to obtain a contractor who has specialized experience in the servicing of the Home Equity Conversion Mortgage (HECM) program. The loan servicing and support functions will include, but is not limited to, those financial and non-financial actions necessary to make sure that the portfolio of loans are managed and serviced in accordance with all applicable governing laws and in accordance with departmental policies, procedures and regulations. The major activities include document collection/validation, loan setup, accounting functions, payment collection according to the Fair Debt Collection Practices Act, disbursement of payments, annual recertification, foreclosure activities, bankruptcy activities, compliance monitoring, enforcement monitoring, preparation and recording of releases /and or satisfaction of mortgages. This request for information is requesting information from interested entities to provide the following information: Name and address of company and or companies (if there is a teaming arrangement or joint venture); Answers to the questionnaire below (Not to exceed 5 pages) Indicate if you are a small business or any other socio-economic categories that apply to your firm under the designated NAICS code; Whether you have had unequal access to any information relevant to the acquisition that could provide an unfair competitive advantage; Questionnaire: Is your firm familiar with the federal procurement requirements? What challenges do you anticipate any complying with federal procurement requirements? What issues or difficulties you foresee in continuing to service assigned loans? Could your firm accept assignments from HUD’s legacy of HECM Assigned loans? What is the limit to your capacity to accept assignments from HUD’s legacy of HECM Assigned loans? What is the limit to your capacity to continue servicing loans assigned to the Secretary? How long would it take you to begin servicing legacy loans from the HECM assigned portfolio? Could your firm service HECM mortgages held in the name of the Secretary? What are the concerns your firm would have regarding coordinating foreclosures with HUD staff and the Department of Justice? What is your firms experience with the Federal Single Family Non-Judicial Foreclosure Act? What information technology is available to your firm to continue servicing Assigned HECM loans and to receive the transfer of servicing of existing Assigned HECM loans? HUD will outline a data reporting requirement published in a Federal Notice. What reporting requirements would create a challenge for you? How long would you need to be able to report under the new data requirements? How your firm complete deeds-in-lieu of foreclosure in all 50 states, Washington, DC, Puerto Rico and the U.S. Virgin Islands? How would your firm complete lien releases all 50 states, Washington, DC, Puerto Rico and the U.S. Virgin Islands? How would your firm monitor Assigned HECM loans for borrower death? How would your firm continue this monitoring if the current information provided by HUD were interrupted? If title issues were identified during the servicing of the loan, how would your firm provide HUD with recommendations on how to most efficiently resolve the issues? Many areas have multiple taxing authorities with different tax due dates. How would your firm monitor all property taxes due for Assigned HECM loans and make property tax payments before the due date for all Assigned HECM loans in a due and payable status? Would your firm have issues ensuring that HUD’s security interests were not lost to tax sales or to a Homeowners’ Association foreclosure in a super-lien state? If your firm would have issues, please describe those issues. Should a property be sold in a tax or HOA foreclosure sale, would your firm anticipate issues with redeeming the property or working with the HOA to obtain title to the property? If your firm does anticipate issues, please describe those issues. What problems do you anticipate pursuing possessory actions post-foreclosure, or selling the REO properties on the Secretary held assigned portfolio? HUD currently uses a Zero Balance Account to fund HECM disbursements. What problems do you anticipate using this method to fund disbursements? How is your firm familiar with Federal Treasury Regulations? Has your firm ever transmitted funds to the Federal Government via Pay.gov? HUD anticipates providing its loan servicer with a Limited Power of Attorney to carry out specific loan servicing tasks. What problems would your firm anticipate with recording these documents and utilizing this authorization to take actions on behalf of the Secretary of HUD? Describe your firm’s capacity to foreclose on the Secretary Held portfolio? Describe how your firm would be able to support HUD to pursue note sales on the assigned portfolio? Only electronic copies of capability statements will be accepted and should be emailed to:
[email protected] . The e-mail shall contain the following subject line: Response to Request for Information – Secretary Held Loan Servicing . The Government may use the responses received to determine whether to proceed with the acquisition This decision and whether to proceed with the acquisition is at the sole discretion of the Government Please respond to the below individual with your interest by January 30, 2020. Contracting Office Address: U.S. Department of Housing and Urban Development 1670 Broadway, 23rd Floor Denver, CO 80202-4801 Primary Point of Contact.: Christopher Stuart Contract Officer
[email protected] Phone: (303) 672-5278