Home Equity Conversion Mortgage (HECM) Accounting Business System

ID: NOF-FY25-002 • Type: Sources Sought

Description

Posted: Nov. 27, 2024, 7:55 a.m. EST

FHA's current Home Equity Conversion Mortgage (HECM) insurance program uses the Home Equity Reverse Mortgage Information Technology (HERMIT) system, provided by Reverse Market Insight, Inc. FHA is considering dividing this large contract into two separate contracts.

Single Family HECM Services (NOF-25-01): FHA Single Family requires Software as a Service (SaaS) for management of its HECM endorsed and assigned portfolio servicing activities, along with the functions for loan setup and assignment claim (claim type 22) processing. These services will include enhanced features for lenders and HUD staff, including a borrower portal and self-service reports.

Accounting Services (NOF-25-002): FHA requires Software as a Service (SaaS) for its traditional HECM accounting activities, including MIP calculation and collection, notes disbursement, plus the processing of claim types 21, 23, and 24, and claims calculation and disbursement functions.

FHA is looking for technical application services that meet Federal Risk and Authorization Management Program (FedRAMP) requirements at the Moderate impact level and other Federal Government cybersecurity and privacy requirements.

HUD received an unanticipated number of questions in response to its sources sought notice and finds it inappropriate to respond at this time. As market research progresses, HUD expects to provide additional information. Respondents are invited to submit capability statements via email to timothy.a.danowski@hud.gov, with a cc to dwayne.e.gist@hud.gov, no later than Friday, December 6, 2024, 2:00 PM Eastern Standard Time for consideration.

Posted: Oct. 31, 2024, 9:31 a.m. EDT

Background
The Department of Housing and Urban Development (HUD) is conducting market research to identify parties interested in providing business services for the Home Equity Conversion Mortgage (HECM) Accounting Business System.

The HECM program allows eligible homeowners aged 62 and above to convert home equity into cash without requiring repayment as long as they reside in the home. HUD's HECM product is a leading reverse mortgage option in the U.S. market, supported by FHA mortgage insurance to protect lenders against losses from non-repayment.

Work Details
The contractor will support the HECM Accounting Business System, which includes:
1. Insurance application processing, pre-endorsement, loan production, and loan servicing for HECM loan portfolios.
2. Help Desk Support for users of the system.
3. Certification and Accreditation (ATO) processes.
4. Transition Out activities at the end of the contract period.

Detailed tasks include:
- IMIP and MMIP Functions
- Processing Claims Types 21, 22, 23, and 24
- Performing HECM-related Calculations
- Accounting functions
- Management and Budgetary Reporting
- Handling GNMA Securities
- Generating Reports and conducting Testing
- Organizing Meetings and Training sessions
- Providing Financial Operating Procedures Support
- Infrastructure Production Support related to Performance Testing and Enhancement
- Performance Monitoring and Operational Support.

Overview

Agency

HUD Office of the Chief Procurement Officer (CPO) [HUD]

Response Deadline

Dec. 6, 2024, 2:00 p.m. EST (original: Nov. 29, 2024, 2:00 p.m. EST) Past Due

Posted

Oct. 31, 2024, 9:31 a.m. EDT (updated: Nov. 27, 2024, 7:55 a.m. EST)

Set Aside

None

NAICS

541219 - Other Accounting Services

PSC

DA01 - IT And Telecom - Business Application/Application Development Support Services (Labor)

Place of Performance

Washington, DC 20410 United States

Source

SAM

Current SBA Size Standard

$25 Million

Pricing

Multiple Types Common

Est. Level of Competition

Average

Odds of Award

16%

On 10/31/24 HUD Office of the Chief Procurement Officer issued Sources Sought NOF-FY25-002 for Home Equity Conversion Mortgage (HECM) Accounting Business System due 12/6/24. The opportunity was issued full & open with NAICS 541219 and PSC DA01.

Primary Contact

Name

Dwayne E. Gist Profile

dwayne.e.gist@hud.gov

Phone

(202) 402-5617

Secondary Contact

Name

Timothy Danowski Profile

timothy.a.danowski@hud.gov

Phone

(202) 402-8920

Question & Answer

Incumbent or Similar Awards

Contracts Similar to Sources Sought NOF-FY25-002

Potential Bidders and Partners

Awardees that have won contracts similar to Sources Sought NOF-FY25-002

Additional Details

Source Agency Hierarchy

HOUSING AND URBAN DEVELOPMENT, DEPARTMENT OF > HOUSING AND URBAN DEVELOPMENT, DEPARTMENT OF > CPO : RESEARCH AND COMMUNITY SUPPOR

FPDS Organization Code

8600-866157

Source Organization Code

500042856

Last Updated

Dec. 21, 2024

Last Updated By