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Project: Operations Assessment of Management and Marketing Services

Agency: U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA)

 

Falcon’s program management and oversight has been proven effective as Falcon received an “Exceptional” rating for all four evaluation areas of Quality, Schedule, Cost Control, and Management in an October 2015 CPARS evaluation related to the HUD Contract DU206SF-12-D-05.

 

Falcon served as the Operations Assessment Contractor to FHA’s $2.1 billion Real Estate Owned (REO) disposition program, Marketing and Management III (M&M III). The purpose of our work was to perform an Operations Assessment of the program to identify and mitigate potential operational, financial, and counterparty risks to the program. The objective of the contract was to conduct targeted investigations and use relevant industry and HUD-provided data to help the FHA assess M&M III Contractor operations as a result of contract and regulatory guidance established by the FHA. The purpose of the contract was to ensure M&M III Contractors are in compliance with the requirements stipulated under their respective contracts and to determine if the processes used are acceptable according to industry benchmarks.

 

Activities under this contract included the following:

  • Create a system of data metrics HUD can implement on an ongoing basis that will:

    • Assess contractor success in meeting contract requirements

    • Identify contractor mismanagement and deliberate non-compliance

    • Manage associated contract risk on an ongoing basis

  • Recommend specific action or changes in procedure, based on industry standards, that the M&M III Contractors should implement to improve upon REO portfolio performance and management

  • Identify REO strategies and practices that are currently employed by GSEs and corporate bank portfolios in order to:

    • Solve issues of systemic error or vulnerability in contractor operations

    • Define benchmarks for successful REO performance

  • Evaluate Marketing and Disposition Procedures

  • Evaluate Property Preservation Procedures

  • Evaluate Mortgagee Compliance Procedures

  • Analyze HUD REO Oversight Operations

  • Compile REO data available from GSEs and corporate industry sources in order to review and analyze industry practices

  • Identify and analyze data relevant to HUD FHA’s program goals and objectives and provide reports that assist the government in monitoring and improving the performance of its M&M Contractors and REO portfolio.