RA and M&M 3.7 industry Day Panel.
Private small business owners attending M&M 3.7 Industry Day in Atlanta.
Region IV Administrator Ed Jennings, Jr recently kicked off M&M 3.7 Industry Day 2014 in Atlanta with over 200 small business owners from throughout the country in attendance. Along with his welcoming remarks, attendees heard extensively from Cassius Butts, SBA Regional Administrator, Region IV, Craig Karnes, Director, HUD M&M Acquisition Center, F. Marie Myers, Contracting Officer, Ralph Jackson, Director, Atlanta REO Division and Dhana Moore, Customer Service Director, GSA. Industry Day 2014 otherwise named M&M 3.7 was also broadcast to two satellite locations in Denver, Colorado and Washington, DC.
Jennings complemented those in attendance for their efforts to address the REO challenge and opportunity and for taking advantage of being there that day.
"The Management and Marketing (M&M) Asset Management Services are one of the largest small business opportunities within the Department of Housing and Urban Development and with more than two hundred participants at the M&M 3.7 Industry Day, most of them being small businesses, the day was a huge success," said Craig Karnes, Director, M&M Acquisition Center.
HUD is currently responsible for marketing and maintaining approximately 40,000 - 50,000 FHA Real Estate Owned (REO) properties at any given time, and sells more than 100,000 properties nationally on an annual basis. FHA properties are located in all 50 U.S. States, as well as the outlying territories of the U.S. Virgin Islands, Puerto Rico, and Guam. HUD has primary responsibility for insuring Federal Housing Administration (FHA) single-family property loans.
Although the loans originate from private lenders such as Chase, Wells Fargo, Bank of America, etc., the FHA insurance fund secures the loans in the event of a default/foreclosure. Following foreclosure verification, HUD pays an FHA insurance claim and legal title to the foreclosed property is conveyed to HUD. Once title conveyance is completed, and HUD is identified as the owner, the property is assigned to Management and Marketing (M&M) Contractors.
The Management and Marketing of Real-Estate Owned (REO) inventory is outsourced by the Atlanta Contracting Field Office to support HUD's four Home Ownership Centers in Santa Ana, CA, Atlanta, GA, Denver, CO and Philadelphia, PA. The two primary types of M&M contractors are Field Service Managers (FSMs) and Asset Managers (AMs). The FSMs are responsible for all of the initial services at the property, including general securing, debris removal, landscape maintenance, winterization, vandalism, health and safety repairs, and routine cleaning. Additionally, once the property is deemed "ready to show," the FSM is responsible for maintaining the required property condition until the property is sold.
The Asset Managers are responsible for the marketing and resale effort, including execution of a limited power of attorney with HUD to review and accept offers on behalf of the Department. The FSM and AM contracts are awarded as either single or multiple award IDIQ contracts using FAR Part 15 Best Value Tradeoff or Lowest Priced Technically Acceptable (LPTA) procedures, as well as FAR Part 19 set-aside authorities. Small Business Prime and subcontracting opportunities are available to real estate brokers, appraisers, landscape maintenance firms, general contractors, real estate inspectors, title settlement and closing services, administrative support and data entry.
To learn more you may go to M&M 3.7 Sources Sought Notice.