The US Department of Housing and Urban Development (HUD) recently held a Pre Solicitation for the Management and Marketing (M&M) Field Service Manager (FSM) 3.12 contract. Striking was the fact that 48 states were opened up for bid. The only two regions not placed on the Pre Solicitation list were Arizona and California; Hawaii; North Marianas Islands; and Guam. Both regions are controlled by Guardian Asset Management (GAM). The fact of the matter is that each and every iteration of the HUD M&M FSM has been an abysmal failure which was culminated by the failure of Innotion Enterprises in Illinois. HUD opted to give Innotion Enterprises an easy out instead of holding them accountable and reissued their contract to PK Management unilaterally. And PK Management did not only obtain Illinois, they were unilaterally awarded several other regions including those of Best Assets, out West, bringing their count well above the legal limits allowable under the HUD M&M FSM protocols.
The fraud, waste, and abuse which has been the legacy of the HUD M&M FSM contract is flaunted by the very perpetrators of samesaid. For years, firms such as Innotion Enterprises and CWIS have fought over the contracts and utilized methods such as overbilling of the termite inspections to ensure obscene profit margins. They and other National Association of Mortgage Field Services (NAMFS) members have had numerous HUD Office of the Inspector General (OIG) reports released explicitly detailing many of the problems.
Foreclosurepedia has been reporting and consulting upon the HUD M&M FSM and the Asset Management (AM) contract for close to a decade now. And while volumes are currently at near all time lows, the fact of the matter is we are seeing enormous increases in the subprime auto loan defaults; we are over one trillion dollars in student loan debt; and Moody’s is reporting an uptick in mortgage defaults.
The question on everyone’s mind is when will the HUD M&M FSM Solicitation be released. And the answer was given several days ago by Senior HUD Officials speaking on condition of anonymity,
It’s been a combination of catch-up and Program areas driving new work based on possibility of a 2nd shutdown. Things have certainly been hectic! Atlanta has been working to finalize the areas on FSM 3.12 based on the most recent performance evaluations. At this point, it’s likely that we will need some extension/bridge action prior to transitioning to 3.12, since the current 5/31 expiration is going to be here before you know it. The final determinations on the areas will be made this week, but you likely won’t see the solicitation for another 3 to 4 weeks based on current progress. The AM 3.9 will be out more quickly, as it is on the final approval review route now.
While not speaking directly to the type of offering set asides, Foreclosurepedia has a well founded hunch that the days of lowest price technically acceptable (LPTA) are gone. So, be prepared for Best Price as opposed to the previous LPTA procurement. Additionally, we are anticipating that this will be the final rodeo under the Trump Administration’s first term.