HUD MCM Contract Response Letter to MBA
August 7, 2015
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-8000
OFFICE OF HOUSING
Mr. Pete Mills
Senior Vice President of Residential Policy and Member Services
Mortgage Bankers Association
1919 M Street NW, 5th Floor
Washington, DC 20036-3572
Dear Mr. Mills:
Thank you for your letter of July 2, 2015, on behalf of the Mortgage Bankers Association (MBA), requesting that the Department of Housing and Urban Development (HUD) work with the MBA and its members to facilitate the transfer of responsibilities to HUD’s new Mortgagee Compliance Manager (MCM) contractor, ISN Corporation (ISN). The Department has reviewed the MBA’s request and would like to address each of the MBA’s concerns, as stated in its letter, and share the following information regarding the transition.
- What is the transition timeframe and planned transition steps?
The MCM transition to ISN will include a minimum of 60 days of training by the incumbent, Michaelson, Connor & Boul (MCB).
- If a protest is lodged, how will this impact the timeframe?
A protest was filed and has been resolved; therefore, MCB’s contract was extended to account for delays due to the protest.
- When is the handover date to the new provider?
ISN is expected to begin full performance within 60 to 90 days from the date of this letter.
- When will servicers be provided with a contact list for ISN and an escalation matrix?
ISN is developing a webpage which will include a list of contacts for specific MCM activities.
- Is the new contract only for new work or does it cover the existing pipeline as well?
At the end of transition, ISN will become responsible for all work in progress, as reflected in HUD’s Asset Disposition System (P260), and all new acquisitions.
- How does the status of the technology contract (P260) interplay with the MCM award and does this introduce additional complications? How will the activities that are managed outside of P260 be handled?
The award of a new P260 contract will not affect MCM processes. All MCM activities are handled through P260, and all information pertaining to work in progress will be transferred to ISN.
- In the April MBA-FHA working group meeting, it was mentioned that the new MCM would have greater delegated authority. What are these changes?
ISN, as the MCM contractor, will operate under the same HUD policies governing the existing MCM contractor.
- Are there any changes to the existing processes that are foreseen due to the award of the contract to ISN?
While there are no existing process changes expected at this time, HUD is continually reviewing all of its Management and Marketing contractors’ processes to determine how to enhance them for the purpose improving the real estate owned (REO) conveyance and disposition process.
The Department appreciates the MBA and it’s member’ participation in HUD’s housing programs and looks forward to continued dialogue to help ensure a seamless and efficient transition to ISN. If you have additional questions regarding this matter, please do not hesitate to contact me on (202) 402-5628 or Matt Martin, Director, National Servicing Center on (405) 609-8533.
Ivery W. Himes
Office of Single Family Asset Management
Please click here to view the letter [pdf].
Please click here to view the MBA’s original inquiry letter to HUD [pdf].