Bidder Qualification Application

Prospective Bidder Name: 

Prospective Bidder Point of Contact: 

Prospective Bidder Point of Contact Phone: 

Prospective Bidder Point of Contact Email: 

Overview

The Bidder Qualification Application (the “Application”) captures information for the FDIC to qualify persons or 

entities for participation in structured transactions involving the sealed-bid auction of a Private Owner Interest in 

one or more Companies to which the FDIC as receiver will transfer Portfolios. As is outlined in the Application 

Scorecard Overview included in Appendix C, the Application is comprised of two levels of questioning. 

Prospective Bidders will provide responses in the space provided in the Application itself. Certain questions allow 

for the provision of additional information in the form of an attachment to the Application. Certain capitalized terms 

used in the Application without separate definition have the meanings given them in the Bidder Qualification 

Application Guidance and Instructions (the “Guidance and Instructions”).

To ensure a diversity of participation, the FDIC welcomes and strongly encourages MWO Businesses to participate 

in FDIC structured transactions as Lead Bidders, Investors, Servicers or Asset Managers. 

Guidance for Completing the Application

This document should be read in conjunction with the accompanying Guidance and Instructions and Bidder 

Qualification Application Frequently Asked Questions, which provide further guidance on the completion of the 

following sections. Any additional questions regarding this document may be directed to the bidder qualification email address established for the designated transaction and referenced in the preliminary sale announcement.

If the Prospective Bidder has completed an Application within the past six months, the Prospective Bidder may 

complete the affidavit included as Appendix A (“Affidavit”) and submit the following:

• Section 1.2 MWO Business Participation

• Section 2.2 Funding

• Section 2.3 Asset Management / Servicing (Not required if bidding on an asset pool similar to that 

considered by the prior Application)

• Section 2.4 Portfolio Management Plan

• An executed Affidavit (Appendix A) to certify that no significant changes have occurred since the 

date of the previously submitted Application.
FDIC Bidder Qualification Application

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Level 1

1.1 Proposed Acquisition Structure

Please provide an organization chart that graphically depicts all entities and their expected funding 

contribution percentages within the proposed acquisition structure for the Private Owner Interest. This 

chart should show the contractual or equity relationships among the Private Owner, its Specified Parent 

(including the Lead Bidder and the Investors) and the Ultimate Parent Entity for each entity comprising the 

Specified Parent. Refer to Appendix D for an example of the required documentation. Please indicate that 

you have attached this support to your submission:

Yes No 

Satisfactory = Yes and Prospective Bidder has provided documentation to support the acquisition structure. 

Unsatisfactory = Insufficient documentation/details to demonstrate the acquisition structure.

Please provide the following information for the Lead Bidder, all Investors (denominated as Investor 1 through 

Investor 4, as the case might be) and the other entities referenced below.

ANY CHANGES TO THE PROPOSED STRUCTURE AND/OR INVESTORS PROVIDING MORE THAN 

25% OF THE FUNDING TO THE PRIVATE OWNER (INCLUDING, WITHOUT LIMITATION, WITH 

RESPECT TO THE SERVICER AND THE ASSET MANAGER) MUST BE COMMUNICATED TO THE 

FDIC PRIOR TO SUBMISSION OF YOUR BID. UNDISCLOSED CHANGES MAY RESULT IN A NONCONFORMING BID. 

All fields below are required.

Lead Bidder

Name and address for the entity/business 

Any prior names or aliases for the 

entity/business

 

Identify names of stakeholders who own 

more than 10% of the entity/business

 

Identify names of key employees of the 

entity/business, including key officers and 

directors

 

Provide estimated funding contribution 

percentage of Lead Bidder to the Private 

Owner

 

Is the Lead Bidder a minority or woman or 

designated as an MWO Business? 

Please indicate ‘yes’ or ‘no’

Choose from..No
FDIC Bidder Qualification Application

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Private Owner (if already formed)

Name and address for the entity/business 

Any prior names or aliases for the 

entity/business

 

Investor 1

Name and address for the individual or 

entity/business

 

Any prior names or aliases for the 

individual or entity/business

 

If entity/business, identify names of 

owners who own more than 10% of the 

entity/business

 

If entity/business, identify names of key 

employees of the entity/business, including 

key officers and directors

 

Provide estimated funding contribution 

percentage of Investor 1 to the Private 

Owner

 

Is Investor 1 a minority or woman or 

designated as an MWO Business? 

Please indicate ‘yes’ or ‘no’

Choose from..No

Investor 2

Name and address for the individual or 

entity/business

 

Any prior names or aliases for the 

individual or entity/business

 

If entity/business, identify names of 

stakeholders who own more than 10% of 

the entity/business

 

If entity/business, identify names of key 

employees of the entity/business, including 

key officers and directors

 

Provide estimated funding contribution 

percentage of Investor 2 to the Private 

Owner

 

Is Investor 2 a minority or woman or Choose from..No
FDIC Bidder Qualification Application

Page 4 of 32

designated as an MWO Business? 

Please indicate ‘yes’ or ‘no’

Investor 3

Name and address for the individual or 

entity/business

 

Any prior names or aliases for the 

individual or entity/business

 

If an entity/business, identify names of 

stakeholders who own more than 10% of 

the entity/business

 

If an entity/business, identify names of key 

employees of the entity/business, including 

key officers and directors

 

Provide estimated funding contribution

percentage of Investor 3 to the Private 

Owner

 

Is Investor 3 a minority or woman or 

designated as an MWO Business? 

Please indicate ‘yes’ or ‘no’

Choose from.No

Investor 4 

Name and address for the individual or 

entity/business

 

Any prior names or aliases for the 

individual or entity/business

 

If entity/business, identify names of 

stakeholders who own more than 10% of 

the entity/business

 

If entity/business, identify names of key 

employees of the entity/business, including 

key officers and directors

 

Provide estimated funding contribution 

percentage of Investor 4 to the Private 

Owner

 

Is Investor 4 a minority or woman or 

designated as an MWO Business? 

Please indicate ‘yes’ or ‘no’

Choose from..No
FDIC Bidder Qualification Application

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Servicer

Name and address for the entity/business 

Any prior names or aliases for the 

entity/business

 

Identify names of key employees of the 

entity/business, including key officers and 

directors

 

Is the Servicer a minority or woman or 

designated as an MWO Business? 

Please indicate ‘yes’ or ‘no’

Choose from.. No

Asset Manager (if different from the Servicer)

Name and address for the entity/business 

Any prior names or aliases for the 

entity/business

 

Identify names of key employees of the 

entity/business, including key officers and 

directors

 

Is the Asset Manager a minority or woman

or designated as an MWO Business? 

Please indicate ‘yes’ or ‘no’

Choose from.. No
FDIC Bidder Qualification Application

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Key Decision Makers (i.e., senior executives or members of the senior management team who will be actively 

and meaningfully involved (directly or indirectly) in all non-ordinary course decision-making regarding (i) 

the conduct of the business and affairs of the Private Owner (including with respect to the Private Owner’s 

obligations and powers in its capacity as the manager of the Company) or (ii) the asset management/special 

servicing of the Portfolio). Please identify up to five individuals or entities that will serve as the most 

significant Key Decision Makers.

Names of Key Decision Makers Entities/businesses with which Key Decision Makers are 

affiliated

 

Key Asset Managers (i.e., individuals with the power (either individually or collectively with other 

individuals), directly or indirectly, to manage and control, and who will be actively and meaningfully 

involved, directly or indirectly, on a day-to-day basis in, all ordinary course decision-making regarding asset 

management/special servicing of the Portfolio). Please identify up to five individuals or entities that will serve 

as the most significant Key Asset Managers.

Names of Key Asset Managers Entities/businesses with which Key Asset Managers are 

affiliated

 
FDIC Bidder Qualification Application

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1.2 MWO Business Participation 

To ensure a diversity of participation, the FDIC welcomes and strongly encourages MWO Business participation 

in FDIC structured transactions. Please indicate if any of the entities listed in this Section 1.2 are MWO Businesses

in the table below. If the participant is a business entity (i.e., not an individual), to be considered “minority and/or 

women owned” the entity would be more than 50% owned and controlled, through day-to-day management by 

persons of one or more of the following groups: American Indian or Alaska Native, Asian, Black or African 

American, Native Hawaiian or Other Pacific Islander, Hispanic or Latino, and/or Women. The provided 

information will be used to establish and monitor the effectiveness of FDIC’s outreach efforts to support diversity of 

participation in FDIC structured transactions.

Minority or Women Owned (MWO) Designations

Designation Lead 

Bidder

Investor 

1

Investor 

2

Investor 

3

Investor 

4

Servicer Asset 

Manager

Are you a 

minority, or 

is your 

entity 

minority

owned?

Yes

No

Race/

Ethnicity

American Indian or Alaska 

Native

Asian 

Black or African American 

Native Hawaiian or Other 

Pacific Islander 

Hispanic or Latino 

Are you a 

woman, or 

is your 

entity

women o

wned?

Yes

No

This section is required; however the disclosed information does not impact scoring of an Application. The 

FDIC strongly encourages participation by MWO Businesses in FDIC structured transactions. 
FDIC Bidder Qualification Application

Page 8 of 32

1.3 Legal Background

Responses in this section are Yes/No. If the respondent’s answer is “Yes,” the respondent is required to 

provide additional information regarding its response. Please answer questions 1.3.1 through 1.3.13 on 

behalf of the Prospective Bidder and all Investors (i.e., all Investors providing more than 25 percent of the

initial capital or ongoing funding to the Private Owner or any of its affiliates) in the spaces provided below. 

Level 1 Questionnaire

Question Entity Response

1.3.1 Has the Prospective Bidder or any of its Key 

Decision Makers or Key Asset Managers 

over the past seven years filed for protection 

under the Bankruptcy Code or any 

insolvency, reorganization, moratorium, 

receivership or other similar law affecting 

enforcement of creditors rights?

If yes, please note what entity or individual 

filed for protection under the Bankruptcy 

Code or any insolvency, reorganization, 

moratorium, receivership or other similar 

law, and when the motion was filed.

Lead Bidder Choose an item.

Investor 1 Choose an item.

Investor 2 Choose an item.

Investor 3 Choose an item.

Investor 4 Choose an item.

1.3.2 Has the Prospective Bidder been determined 

to be insolvent by any bankruptcy court or 

had a receiver or conservator appointed by 

any state or federal regulator within the past 

seven years?

If yes, please note the bankruptcy court that 

handed down the ruling or the receiver or 

conservator that was appointed, and the 

nature of this action. 

Lead Bidder Choose an item.

Investor 1 Choose an item.

Investor 2 Choose an item.

Investor 3 Choose an item.

Investor 4 Choose an item.

1.3.3 Has the Prospective Bidder or any of its Key 

Decision Makers or Key Asset Managers 

been removed from or prohibited from 

participating in the affairs of any insured 

depository institution pursuant to any final 

enforcement action taken by any federal and 

or state banking agency?

If yes, please specify the individual or entity 

that was removed or prohibited from 

participating in the affairs of the insured 

depository institution, the name of the insured 

depository institution, the federal and or state 

banking agency that took the enforcement 

Lead Bidder Choose an item.

Investor 1 Choose an item.

Investor 2 Choose an item.

Investor 3 Choose an item.
FDIC Bidder Qualification Application

Page 9 of 32

action, and the nature of the prohibition. Investor 4 Choose an item.

1.3.4 Have any of the Prospective Bidder’s Key 

Decision Makers or Key Asset Managers 

been a key employee with a Failed Financial 

Institution within the past seven years, or 

been restricted/prohibited from participating 

in the affairs of a Failed Financial Institution?

If yes, please specify the individual or entity 

that was a key employee with a Failed 

Financial Institution or was 

restricted/prohibited from participating in the 

affairs of a Failed Financial Institution and 

the nature of the prohibition.

Lead Bidder Choose an item.

Investor 1 Choose an item.

Investor 2 Choose an item.

Investor 3 Choose an item.

Investor 4 Choose an item.

1.3.5 Has the Prospective Bidder been informed of, 

or been subject to any legal proceeding 

involving fraud, criminal activity or breach of 

fiduciary duty in any jurisdiction 

(internationally and nationally) in the past 

five years?

If yes, please provide details of the 

proceedings and the extent to which these 

proceedings impair the Prospective Bidder's 

ability to manage the desired Assets.

Lead Bidder Choose an item.

Investor 1 Choose an item.

Investor 2 Choose an item.

Investor 3 Choose an item.

Investor 4 Choose an item.

1.3.6 Within the past five years, has the 

Prospective Bidder been subject to any 

federal or state citations or enforcement 

actions?

If yes, please describe the federal or state 

citations or enforcement actions, and the 

extent to which these citations or enforcement 

actions impair the Prospective Bidder's 

ability to manage the desired Assets.

Lead Bidder Choose an item.

Investor 1 Choose an item.

Investor 2 Choose an item.

Investor 3 Choose an item.

Investor 4 Choose an item.

1.3.7 Is the Prospective Bidder currently 

undergoing a dispute or engaged in 

unresolved matters involving correspondence 

with the IRS or other U.S. Government 

Agency?

Lead Bidder Choose an item.

Investor 1 Choose an item.
FDIC Bidder Qualification Application

Page 10 of 32

If yes, please note the U.S. Government 

Agency that the Prospective Bidder is 

currently engaged in a dispute with and 

describe the nature of these unresolved 

matters.

Investor 2 Choose an item.

Investor 3 Choose an item.

Investor 4 Choose an item.

1.3.8 Is the Prospective Bidder currently, or has the 

Prospective Bidder previously been, subject 

to any investigations with respect to AntiMoney Laundering requirements or Patriot 

Act violations?

If yes, please note the dates of the 

investigation, if the investigation is still 

ongoing, and describe the entity pursuing the 

investigation, as well as the findings (if any).

Lead Bidder Choose an item.

Investor 1 Choose an item.

Investor 2 Choose an item.

Investor 3 Choose an item.

Investor 4 Choose an item.

1.3.9 Does the Prospective Bidder currently have a 

delinquent obligation to the FDIC, any U.S. 

Government Department, or a Failed 

Financial Institution for which the FDIC is 

receiver or conservator of $50,000 or more?

If yes, please indicate the size of the 

delinquent obligation, years outstanding, and 

the entity to which the obligation is owed. 

Lead Bidder Choose an item.

Investor 1 Choose an item.

Investor 2 Choose an item.

Investor 3 Choose an item.

Investor 4 Choose an item.

1.3.10 Does the U.S. Government currently hold 

investments in the Prospective Bidder under 

the Troubled Asset Relief Program (TARP)?

If yes, please note if these investments are 

held directly or indirectly in the Prospective 

Bidder and describe the nature of these 

investments. 

Lead Bidder Choose an item.

Investor 1 Choose an item.

Investor 2 Choose an item.

Investor 3 Choose an item.

Investor 4 Choose an item.

1.3.11 If the Prospective Bidder is an FDIC insured 

depository institution, does the Prospective 

Bidder have a Memorandum of 

Understanding or other regulatory agreement 

Lead Bidder Choose an item.

Investor 1 Choose an item.
FDIC Bidder Qualification Application

Page 11 of 32

that would prohibit or restrict participation in 

this type of transaction?

If yes, please describe the limitations imposed 

by this regulatory agreement. 

Investor 2 Choose an item.

Investor 3 Choose an item.

Investor 4 Choose an item.

1.3.12 If the Prospective Bidder is an FDIC insured 

depository institution, has the Prospective 

Bidder obtained from its primary federal 

regulator and/or its state supervisory authority 

either written approval to enter into this 

transaction or a certification that such written 

approval has been waived or is not required? 

If yes, please provide a copy of such approval 

or certification as an attachment with “1.3.12 

Regulatory Approval” in the file name.

Lead Bidder Choose an item.

Investor 1 Choose an item.

Investor 2 Choose an item.

Investor 3 Choose an item.

Investor 4 Choose an item.

1.3.13 Is the Prospective Bidder considered an “offshore entity” or otherwise not subject to U.S. 

tax?

If yes, please describe the nature of the tax 

shield. 

Lead Bidder Choose an item.

Investor 1 Choose an item.

Investor 2 Choose an item.

Investor 3 Choose an item.

Investor 4 Choose an item.

Please answer questions 1.3.14 through 1.3.18 on behalf of the Servicer in the spaces provided below. If the 

respondent’s answer is “Yes,” the respondent is required to provide additional information regarding its 

response.

Level 1 Questionnaire

Question Response

1.3.14 Does the Servicer require additional licenses, registrations, 

insurance coverage, permits or qualifications to be considered in 

compliance with all applicable laws in all states in which the 

Servicer currently conducts business? 

If yes, please indicate the item(s) not in compliance.

Choose an item.
FDIC Bidder Qualification Application

Page 12 of 32

1.3.15 Has the Servicer had any license terminated, canceled or revoked 

by any department or agency of the federal or any state 

government? 

If yes, please specify the license that was affected, the reason for 

the termination, cancellation or revocation, and what steps are 

currently being taken to rectify the issue.

Choose an item.

1.3.16 Is the Servicer currently subject to a pending enforcement action 

or regulatory investigation due to any potential RESPA, FCRA, or 

GLB Privacy Act violations?

If yes, please indicate the status of the pending enforcement action 

or regulatory investigation and provide details of the allegations.

Choose an item.

1.3.17 Is the Servicer a wholly owned subsidiary of an insured depository 

institution? 

If yes, please specify the name of the insured depository institution.

Choose an item.

1.3.18 Has the Servicer been continuously engaged in the servicing of 

loans as a principal business for less than 3 years?

If yes, please indicate the number of years Servicer has been 

continuously engaged in the servicing of loans as a principal 

business and details of any relationship to an entity that may lend 

additional experience, and the number of years this entity has been 

continuously engaged in the servicing of loans as a principal 

business.

Choose an item.
FDIC Bidder Qualification Application

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Level 2

The qualification questions below allow Prospective Bidders to provide detailed responses pertaining to their 

qualifications in general as well as specific to the Portfolio. Questions in the section are listed by the category in 

which responses will be scored.

2.1 Financial Background

2.1.1 Is the Prospective Bidder rated by a nationally recognized rating agency (e.g. Fitch, Standard 

and Poor’s, Moody’s, Morningstar, Kroll, or AM Best)?

Yes No 

If yes, please provide rating, rating type (credit rating or issuer rating) and name of rating agency in the 

space below. Also, provide latest rating report available as an attachment with the “2.1.1 Prospective 

Bidder Rating” included in the file name of the attachment.

Credit rating will be scored in a manner consistent with the rating agency definitions.

Example:

Yes: Satisfactory = High/Strong/Good/Adequate

Unsatisfactory = Speculative/Fair/Poor

No: Unscored

2.1.2 Please provide audited or CFO-certified financial statements for each of the Lead Bidder and all 

Investors (i.e., Investors providing more than 25 percent of the initial capital or ongoing funding 

to the Private Owner or any of its affiliates). Please provide these as attachments with “2.1.2 

Financial Statements” in the file name of each attachment. See Appendix B for the required 

format of CFO certification.

If financial statements are not available for the Lead Bidder and/or any Investors (i.e., any Investors 

providing more than 25 percent of the initial capital or ongoing funding to the Private Owner or any of 

its affiliates), please explain why financial statements are not available for the entity(ies), and provide 

alternative information to support the current financial position of the entity(ies).

NOTE: The FDIC requires audited or CFO-certified financial statements from investors 

collectively providing at least 50 percent of the funding to the transaction and reserves the right to 

request audited or CFO-certified financial statements from additional investors providing 25 percent or 

less of funding. 

Rating(s): 

Rating type(s):

Name of rating agency(ies): 
FDIC Bidder Qualification Application

Page 14 of 32

Satisfactory = Prospective Bidder has (1) provided appropriate documentation to support the financial position of 

the Lead Bidder and all Investors AND (2) provided audited or CFO-certified financial statements from entities 

collectively providing at least 50 percent of funding to the transaction.

Unsatisfactory = Insufficient documentation/details to demonstrate financial position of the Lead Bidder, any 

Investor, investors collectively providing at least 50 percent of funding, and/or investors providing 25 percent or less 

of funding (as requested by the FDIC).

2.1.3 If the Prospective Bidder is an FDIC insured depository institution, then please provide the most 

recent Tier 1 capital ratio and provide date of calculation.

Please provide your response in the space below. 

2.1.4 Please provide your expected pro forma Tier 1 ratio following the transaction. 

Please provide your response in the space below.

2.1.5 Please provide bios/resumes of the Key Decision Makers (not Key Asset Managers, for whom 

information will be provided in Question 2.3.8), and please document relevant prior experience. 

Please provide these as attachments with “2.1.5 Bios/Resumes of Key Decision Makers” in the 

file name of the attachment.

Satisfactory = Prospective Bidder has provided bios/resumes of Key Decision Makers that clearly indicate the Key 

Decision Maker has at least seven years of experience in the relevant functional areas and industries and a degree 

from an institution of higher education. 

Unsatisfactory = Insufficient documentation/details concerning qualifications of Key Decision Makers.

 

 
FDIC Bidder Qualification Application

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2.2 Funding

For each of the Lead Bidder and all Investors, (i.e., all Investors providing more than 25 percent of the initial 

capital or ongoing funding to the Private Owner or any of its affiliates), please complete the table below and 

indicate the source(s) and amount of funding available to fund the anticipated bid, as required by the 

proposed transaction terms. Third party documentation (e.g., bank statements, commitment letters, etc.) 

must be provided to support the availability of the funds identified. Please refer to Appendix E for an 

example of the required documentation and include “2.2 Funding” in the file name of the corresponding 

attachment. 

NOTE: Bidder will not be qualified to bid in excess of the funding amount for which third-party supporting 

documentation is provided. Any bid submitted in excess of the amount for which a Bidder is qualified may result in 

a non-conforming bid.

Prospective Bidders are required to provide documented evidence of a total funding amount that is free, clear 

and available to close the transaction and fund the purchase of the Private Owner Interest (i.e., the bid 

price). Prospective Bidders are on notice that funding in addition to the bid price amount will be required to 

fund the ongoing obligations (i.e., working capital, development efforts, unforeseen/stress liquidity needs) as 

required by the Transaction Documents.

Satisfactory = Funds are readily available

Unsatisfactory = Insufficient details/plans to secure funding.

Type of 

Funding

Entity 

contributing 

funding

Amount 

of 

Funding 

($)

Percentage 

of Total 

Funding/

Ownership

Timing 

Necessary 

to Secure 

Funds

(# of 

Business 

Days)

Restrictions 

and/or 

Contingencies

(Y/N - If Y, 

please explain)

Third-Party 

Supporting 

Documentation 

and Source(s) of 

Funding 

(Reference 

attachment 

name)

Level 1 

Completed 

and 

Attached 

(Y/N)

Audited or 

CFOCertified 

Financial 

Statements 

Attached 

(Y/N)

Readily 

Available 

Cash

Debt

Capital 

Call

Other 

Sources of 

Funding

Total 

Supported 

and 

Available 

Funding
FDIC Bidder Qualification Application

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2.3 Asset Management/Servicing

2.3.1 Is the Servicer rated by a nationally recognized rating agency (e.g. Fitch, Standard and Poor’s,

Moody’s, Morningstar, or Kroll)? 

Yes No 

If yes, please provide servicer or special servicer rating and name of rating agency in the space below. 

(Please also provide the product type for each rating provided by Standard and Poor’s.) Furthermore, 

if yes, please submit a Ratings Report from the last 18 months with “2.3.1 Servicer Rating” in the file 

name of the attachment. 

If you answered Yes to Question 2.3.1, go directly to Question 2.3.6 to continue completion of this section.

Note that FDIC reserves the right to request responses to Questions 2.3.2 – 2.3.5 if the servicer’s rating is 

Unsatisfactory as defined in the scoring criteria below:

Servicer rating will be scored in a manner consistent with the rating agency definitions.

Fitch Servicer Ratings

Satisfactory =RPS1, RPS2 or CPS1, CPS2, RPS3 or CPS3

Unsatisfactory =RPS4, RPS5 or CPS4, CPS5

Moody’s Servicer Ratings

Satisfactory = SQ1 ,SQ2, SQ3

Unsatisfactory =SQ4, SQ5

S & P Servicer Ratings

Satisfactory = Strong, Above Average, Average

Unsatisfactory =Below Average, Weak

Morningstar Servicer Ratings

Satisfactory = CS1, CS2, CS3

Unsatisfactory = CS4

Kroll Servicer Ratings

Satisfactory = Pass

Unsatisfactory = No Pass

2.3.2 Servicer approvals

Please provide the information requested in the space below.

Prompt Response

Is the Servicer currently an approved servicer for the following? 

Please check all that apply or indicate the Servicer is not an 

approved servicer of GSE loans.

 FNMA Residential Loans

 FHLMC Residential Loans

 GNMA Residential Loans

 FNMA Commercial/Multifamily Loans

 FHLMC Commercial/Multifamily Loans

Rating(s): 

Rating type(s): 

Name of rating agency(ies): 
FDIC Bidder Qualification Application

Page 17 of 32

 GNMA Commercial/Multifamily Loans

 Not an approved servicer of GSE loans

Satisfactory = Servicer approval from at least one of three GSEs for residential loans.

Unsatisfactory = No Servicer approval from at least one agency for residential loans.

2.3.3 FHLMC Servicer Performance Profile Tier rating

Please provide the information requested in the space below.

Prompt Response

If the Servicer is an approved FHLMC servicer, what is the Servicer’s 

current FHLMC Servicer Performance Profile Tier rating?

Please check the applicable response or indicate the Servicer is not an 

approved FHLMC servicer.

 5

 4

 3

 2

 1

 Not an approved servicer of 

FHLMC loans

Satisfactory = 1, 2 or 3

Unsatisfactory = 4 or 5

If FHLMC establishes a servicer’s practices as poor, the FDIC should consider not using Servicer until FHLMC 

deems them to pass a minimum threshold

Not scored = Not approved FHLMC servicer

2.3.4 Is the Servicer a member of MERS?

Yes No 

2.3.5 Servicer Overview

If the Servicer does not have a loan servicer rating from a nationally recognized rating agency, please provide 

the information requested in the table below. Additional information may be provided in the form of an 

attachment with “2.3.5 Servicer Overview” in the file name of the attachment, as needed.

Prompt Response

Operational Experience of 

Servicer

Please provide information on 

specific skills and expertise 

(include details on 

management’s experience) of 

your servicing operation with 

particular emphasis on your 

experience and capabilities in 

default management and 

property types specific to the 

Portfolio to be acquired from 

FDIC.
FDIC Bidder Qualification Application

Page 18 of 32

Affiliates and Third Party 

Contractors/Sub servicers

If the Prospective Bidder is not 

managing or servicing the 

acquired assets directly, 

provide information on the 

third party contract Servicer 

and/or other service providers 

who will manage or service the 

loans on your behalf. 

Provide information on existing 

subservicing arrangements and 

offshore service providers 

being used (if applicable) and if 

agreements have been formally 

executed with these providers.

IT Security Current disaster recovery plan 

(e.g., clearly demonstrate 

established procedures and 

policies related to disaster 

recovery

Current data security and 

access controls (e.g., clearly 

demonstrate established 

procedures and policies related 

to data security and access 

controls)

Satisfactory = Information provided shows that Servicer has an experienced management team and an operation 

experienced in managing the risks and capability to properly service the loans of the type acquired from the FDIC

Unsatisfactory = Information provided does not show that Servicer has sufficient experience and operations to 

properly service the loans of the type acquired from the FDIC.

2.3.6 Servicing Portfolio Characteristics

Please provide information on the specific loan characteristics of your current servicing portfolio in the table

below. Additional information may be provided in the form of an attachment with “2.3.6 Servicer Portfolio 

Characteristics” in the file name of the attachment, as needed.

Prompt Response

The number and types of loans serviced

The geographic distribution of the loans

The percentage of performing versus non-performing loans in the 

portfolio

The definition of non-performing (i.e., 90+ days delinquent)

Satisfactory = Able to provide basic portfolio information
FDIC Bidder Qualification Application

Page 19 of 32

Unsatisfactory = Cannot provide basic portfolio information in a report.

2.3.7 Non-English Speaking Capabilities 

Whether or not the Servicer has a loan servicer rating from a nationally recognized rating agency, please 

provide the information requested in the table below if the assets to be transferred to each Company include 

single-family residential mortgage loans or single-family residences.

Prompt Response

Capabilities and experience successfully dealing 

with non-English speaking borrowers and 

homeowners. 

Call center operations technology (e.g., Interactive 

Voice Response)

Call center operations dedicated staffing, 

including number of multi-lingual staff

Call center loss mitigation procedures for issues 

affecting non-English speaking borrowers

2.3.8 Asset Management Experience

For the Asset Manager (whether the Servicer, the Lead Bidder or a third party) and team that will work on the 

Portfolio, please provide the information requested in the spaces below. Additional information may be 

provided in the form of an attachment with “2.3.8 Asset Management Experience” in the file name of the 

attachment, as needed.

Prompt Response

Document relevant prior experience.

Please also provide the name of any 

and all third party contractors who 

will be performing these services on 

your behalf, including bios/resumes 

of the Key Asset Managers who will 

work on the Portfolio.

Project Management along with 

affiliations and/or experience

Preferred General Contractors and 

relationships

Zoning/Permitting Experience

Project Budgeting/Forecasting

Architect/Engineering Staffing

Legal Staffing/Counsel
FDIC Bidder Qualification Application

Page 20 of 32

Previous Work on Similar Projects Please discuss your involvement 

in the top three projects and/or 

portfolios worked on in the last 

three years that are similar to the 

asset types included in the 

Portfolio.

Please include the name, type, 

size, and location of the project 

and/or portfolio, the project 

timeline, the property owner (as 

applicable) and whether the 

project was completed (as 

applicable). If any of these three 

projects was terminated, discuss 

the reason for the project’s 

termination.

Workouts Provide information on any recent 

experience performing workouts

Commercial Foreclosures Provide information on any recent 

experience foreclosing on 

commercial properties

Receivership Proceedings Provide information on any recent 

experience in real estate 

receivership proceedings.

Satisfactory = Information provided shows that Asset Manager has an experienced management team and operation 

which has demonstrated an ability to manage the risks for the loan type(s) acquired from the FDIC

Unsatisfactory = Information provided does not show that the Asset Manager has sufficient experience and an 

operation which has demonstrated the ability to manage the risks for the loan types acquired from the FDIC

2.4 Portfolio Management Plan

Prospective Bidders should provide a plan that demonstrates how they will transition, control, direct, 

accomplish, and realize value from (exit) the Portfolio. The plan should provide a clear, realistic marketing 

and disposition strategy. All responses provided in this section should be specific to the Portfolio to be 

transferred to the Companies. Please provide responses in the spaces below. Additional information may 

be provided in the form of an attachment with “2.4 Plan” in the file name of the attachment, as needed.

The plan should address overall project strategy and asset management, the Servicer's operational capacity, 

and the exit strategy. Response guidance is summarized below. Please refer to Appendix F for an example 

of required responses.

Prompt Response

Operational 

Capacity

Strategy for encouraging and 

involving MWO Businesses and 

local businesses in the transaction 

(e.g., involvement with local 
FDIC Bidder Qualification Application

Page 21 of 32

specialists and contractors such as 

(but not limited to) construction 

companies, legal teams, etc.)

Operational capacity of your 

Servicer (e.g., current loan servicing 

capacity, excess capacity, and how 

your Servicer intends to modify its 

operations in order to accommodate 

an increase in loans serviced as a 

result of being awarded this 

Portfolio)

Asset 

Management

Approach for underwriting, onboarding, and transitioning the 

assets into your portfolio (e.g., due 

diligence practices)

Approach for evaluating and 

categorizing the assets

Approach for servicing and 

managing the assets (e.g., strategies 

for collaborating with borrowers, 

developing asset-specific resolution 

plans)

Exit Strategy Approach for assigning/assessing 

potential work-out strategies

Various disposition strategies (e.g., 

market for sale, deed in lieu, 

foreclosure, loan modification, 

discounted pay-offs) for each asset 

class

Various marketing strategies (e.g., 

leverage regional realtors) for each 

asset class

Anticipated timeframe for complete 

Portfolio resolution (e.g., five years)
FDIC Bidder Qualification Application

Page 22 of 32

Appendix A - Affidavit

NOTE: This affidavit (“Affidavit”) can only be used to reference an Application that has been 

submitted during the six months preceding the bid date. Repeat Prospective Bidders may also 

choose to submit a complete Application for each structured transaction in place of this Affidavit.

Please provide the following information:

Prospective Bidder Name

Transaction / Application submission and 

corresponding date referenced by the Affidavit 

(e.g., CRE 2011-2, Month, Year)

_____________________________________________________________________________________________

Prospective Bidder affirms, certifies, and understands the following:

• the information provided in this Affidavit is accurate;

• it may be held liable for any and all inaccuracies;

• the responses to the Application sections referenced by the Affidavit, and identified below, remain true and 

correct in all respects;

• there are no changes to prior responses, 

• for any changes to a prior response, it has re-submitted the relevant revised section (s) of the Application 

and provided relevant supporting documentation, and

• any post-submission changes made to the Application referenced by this Affidavit apply to all subsequent 

Applications for which the Affidavit is used.

Check all Application sections for which the prior submission should be referenced:

Section

Check if Section remains true and 

correct in all respects

Section 1.1 Proposed Acquisition Structure ⁯

Section 1.2 MWO Business Participation ⁯

Section 1.3 Legal Background ⁯

Section 2.1 Financial Background ⁯

Section 2.3 Asset Management/Servicing 

 Question 2.3.1 - Question 2.3.7 (Servicing-related) ⁯

 Question 2.3.8 (Asset Management Experience) ⁯

Note: Sections 2.2 Funding and 2.4 Portfolio Management Plan are NOT covered by this Affidavit and must be 

included with each Application submission. Furthermore, your prior responses for Section 2.3 Asset Management / 

Servicing will only be considered if the assets included in this Portfolio are similar to the assets included in the 

Portfolio referenced by the Affidavit. Otherwise, Section 2.3 is not covered by this Affidavit and MUST be 

completed.
FDIC Bidder Qualification Application

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EXECUTED THIS DAY OF , 20

By: _____________________ 

Print Name: _____________________ 

Print Title: _____________________ 

Prospective Bidder’s Name and 

Address: 

Prospective Bidder Contact Person:

Contact Person Telephone Number:

NOTICE CONCERNING LEGAL ACTION

Anyone who knowingly or willfully makes false or fraudulent statements or

representations in connection with this Affidavit will be referred to the Office

of Inspector General and/or the appropriate law enforcement officials for investigation and

legal enforcement and may be subject to fines, imprisonment, or both. See 18 U.S.C. §§

1001, 1007 and 1014.
FDIC Bidder Qualification Application

Page 24 of 32

Appendix B – CFO certification of financial statements.

I, ______________________(insert name and title here), certify that the information contained in the 

__________________________(Entity name) unaudited balance sheet and income statement (or unaudited financial 

statements) fairly presents, in all material respects, the financial condition and results of operations of the company 

as of ______________[Date].

________________________________ 

(Signature)

________________________________

(Title)

_ _______________________________

(Date)
FDIC Bidder Qualification Application

Page 25 of 32

Version 3.1.4

Appendix C

Application Scoring Methodology Overview

Application 

Scorecard 

Overview

Credit 

History 

and 

Legal 

Record

Minority or 

Women 

Owned 

Participation

Financial 

Background Funding

Asset 

Management 

and 

Servicing

Portfolio 

Management 

Plan

Level 1

Response categories are 

Yes/No. If a 

respondent answers 

“Yes,” the respondent 

is required to provide 

additional information. 

Responses 

will be 

“No” or 

“Yes’

“No” 

results in a 

pass

“Yes” 

requires 

additional 

information

Level 1 

responses will 

be identified in 

Section 1.2 N/A N/A

Responses will 

be “No” or 

“Yes’

“No” results in 

a pass

“Yes” requires 

additional 

information

N/A

Level 2

Prospective Bidders 

will prepare responses 

to qualification 

questions pursuant to 

the instructions 

included in the 

Application 

Instructions. 

N/A

Level 2 

responses will 

be identified in 

section 2.4

Ratings:

Satisfactory

Unsatisfactory

Ratings:

Satisfactory

Unsatisfactory

Ratings: 

Satisfactory

Unsatisfactory

Ratings:

Satisfactory

Unsatisfactory

Level 1

Should an answer to any of the Level 1 questions be “Yes,” then an explanation will be required regarding the 

specific issue identified. Responses will be identified as set forth in Sections 1.1, 1.2, and 1.3.

Level 2

Scoring of answers for this section will be “Satisfactory” or “Unsatisfactory.”

Level 2 Questions cover Financial Background, Funding, Asset Management/Servicing experience, and Portfolio 

Management Plan. Each of the Level 2 sections will receive an overall score of Satisfactory or Unsatisfactory. The 

scoring methodology for each of these sections is explained below, and is based on the responses to the individual 

questions within those sections. 

The FDIC will consider the overall merits of each Application compared to the complexity and risks of the Portfolio 

to be transferred to each Company as part of the structured transaction. 
FDIC Bidder Qualification Application

Page 26 of 32

Version 3.1.4

The following provides examples of scoring criteria for the Application within the respective categories for 

Level 2 questions:

Funding

A satisfactory Prospective Bidder is expected to demonstrate the following:

• Financial resources are readily available to close the transaction within the FDIC’s prescribed timeline.

• Financial resources are available to fund the management of the assets post closing, potentially including 

completion of projects, and funding of existing commitments. Further, a satisfactory Prospective Bidder 

should demonstrate that additional funding is available or can easily be accessed in the event of an 

unforeseen stress on liquidity.

A Prospective Bidder demonstrating the following attributes may be considered Unsatisfactory with respect to 

Funding:

• An inability to demonstrate that sufficient funding is available.

• An inability to demonstrate that the Prospective Bidder can close the transaction within the FDIC’s 

prescribed timeline.

• No clear plan for ongoing funding of the management of the assets.

• An inability to demonstrate that resources are available to fund the management of the Assets post closing 

or in a liquidity stress event.

Servicer

A satisfactory Servicer is expected to demonstrate the following:

• High Servicer Rating (if Rated)

• Relevant Experience demonstrated in Servicer Overview (if Unrated)

• For Residential Loans, Servicer is expected to be an approved Servicer of any one of the three GSEs 

(GNMA, FNMA or FHLMC). 

A Prospective Bidder demonstrating the following attributes may be considered Unsatisfactory with respect to 

Servicing:

• Inexperienced management team

• Lack of infrastructure and experience to adequately service the loans included in the Portfolio

• Inability to provide satisfactory reports on general servicing portfolio characteristics 

• Low FHLMC Performance Profile Tier Rating (if rated)

• For Residential Loans, Servicer is not an approved Servicer of GNMA or any one of the two GSEs (FNMA 

or FHLMC).

Asset Manager

Information provided for the Asset Manager (whether the Private Owner or otherwise) is expected to demonstrate 

prior asset management experience relevant to the Portfolio to be transferred to the Companies as part of the 

structured transaction, together with an experienced project management team and financial and operational 

capabilities to manage the Portfolio and Companies until the Portfolio has been liquidated. For Residential Loans, 

Prospective Bidder should demonstrate prior experience with implementing and successfully managing government 

mandated loan modification programs and capabilities, experience and dedicated staffing in successfully dealing 

with non-English speaking borrowers and homeowners.

The Asset Manager will be assigned a “Satisfactory” or “Unsatisfactory” rating based upon relevance and depth of 

experience compared to the Portfolio to be transferred to each Company as part of the structured transaction.

Portfolio Management Plan 

Information provided in the Portfolio Management Plan is expected to demonstrate a clear overall project strategy 

and continuance/transition plan to manage the Portfolio and Companies until the Portfolio has been liquidated. The 

plan is also expected to demonstrate existence of an experienced project team, with relevant skill sets to complete 

the orderly liquidation of the Portfolio.
FDIC Bidder Qualification Application

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Version 3.1.4

All responses provided in this section should be specific to the Portfolio to be transferred to the Companies as 

part of the structured transaction. Prospective Bidders should provide a plan that demonstrates how they will 

plan, control, direct, manage, transition and liquidate the Portfolio. The plan should also provide a clear, realistic 

marketing and disposition strategy for the Portfolio and should also identify the Prospective Bidder’s plan to further 

encourage the participation of MWO Businesses and local businesses in the servicing, management and liquidation 

of the Portfolio. The Prospective Bidder’s Portfolio Management Plan will be assigned a “Satisfactory” or 

“Unsatisfactory” rating based upon the ability to demonstrate these specific requirements. 
FDIC Bidder Qualification Application

Page 28 of 32

Appendix D

Required Documentation for Proposed Acquisition Structure

The following diagram is an example of a proposed organization chart that graphically depicts all entities and their 

funding contribution percentages to the Private Owner that should be submitted with the Application. When 

preparing your organization chart, please be sure to indicate whether any entity is an MWO Business. Additionally, 

please indicate in your organization chart if the funding contribution by any entity is still uncertain (as indicated in 

the example below). An updated organization chart that clearly indicates the funding percentage to be contributed 

by each entity should be submitted once the structure is finalized. 

Example: 

Ultimate

Parent 

Entities

100% Subsidiary of 

Company A

(Lead Bidder)

Company A Company B

(Investor 1) Company C

Company D

(Investor 3)

MWO Business

100% Subsidiary of 

Company C

(Investor 2)

Specified Parent

Private Owner

(Please note if an 

SPE and also the 

Asset Manager)

Lead Bidder Funding Contribution = 45% 

Funding Contribution = 100% 

of Lead Bidder Funding

Investor 3 Funding Contribution = TBD%

Company F

(Asset Manager. 

Please note if an 

affiliate of the 

Private Ownerr)

Company E

(Servicer)

FDIC Structured 

Transaction (LLC)

Funding Contribution = 100%

of Investor 2 Funding

Investor 2 Funding Contribution = TBD%

Investor 1 Funding Contribution = 25%
FDIC Bidder Qualification Application

Page 29 of 32

Key Terms:

Specified Parent: The Specified Parent of the Private Owner is comprised of one or more entities designated as the 

“Specified Parent” on the Bid Form (typically, the Lead Bidder and the Investors) that collectively control and 

collectively own, either directly or indirectly, at least 50.1% in value of the Private Owner Interest. 

Ultimate Parent Entity: For each entity comprising the Specified Parent of the Private Owner, the entity having 

ultimate control of such entity. 

 
FDIC Bidder Qualification Application

Page 30 of 32

Appendix E

Example Complete Funding Table

The following is an example of a completed funding table that should be included as the Bidder's response to 

Section 2.2 Funding.

Type of 

Funding

Entity 

contributing 

funding

Amount 

of 

Funding 

($)

Percentage 

of Total 

Funding to

Private 

Owner

Timing 

Necessary 

to Secure 

Funds

(# of 

Business 

Days)

Restrictions 

and/or 

Contingencies

(Y/N - If yes, 

please 

explain)

Third-Party 

Supporting 

Documentation 

and Source(s) 

of Funding 

(Reference 

attachment 

name)

Level 1 

Completed 

and 

Attached 

(Y/N))

Audited or 

CFOCertified 

Financial 

Statements 

Attached 

(Y/N)

Readily 

Available 

Cash

Company A

(100% Owner 

of Lead 

Bidder)

$25.0M 25% 1 Business 

Day N

See Audited 

Financial 

Statements 

(Attachment A)

Y Y

Company B

(Investor 1) $15.0M 15% 1 Business 

Day N

See Bank 

Statement 

(Attachment B)

Y Y

Debt

Company A

(100% Owner 

of Lead 

Bidder)

$20.0M 20%

10 

Business 

Days

N

Line of Credit 

with Bank XYZ 

(Attachment C)

Y Y

Capital 

Call

Company B 

(Investor 1) $10.0M 10%

10 

Business 

Days

N

Executed 

Commitment 

Letter

(Attachment D)

Y Y

Other 

Source of 

Funding

Company C

(100% Owner 

of Investor 2) 

TBD TBD TBD TBD TBD

To be 

provided 

upon 

finalization 

of 

structure, if 

>25%

To be 

provided 

upon 

finalization 

of structure, 

if >25%

Other 

Source of 

Funding 

Company D

(Investor 3)

MWO 

Business

TBD TBD TBD TBD TBD

To be 

provided 

upon 

finalization

of 

structure, if 

>25%

To be 

provided 

upon 

finalization 

of structure, 

if >25%

Total 

Supported 

and 

Available 

Funding

$70.0M 70%
FDIC Bidder Qualification Application

Page 31 of 32

Appendix F 

Example of completed Portfolio Management Plan

The following is an example of responses to Section 2.4 Portfolio Management Plan. Please note, the responses 

included below serve as an example only. The Portfolio Management Plan responses should be tailored to clearly 

demonstrate the intended strategy for the Portfolio.

Prompt Response

Operational 

Capacity

Strategy for 

encouraging and 

involving MWO 

Businesses and 

local businesses in 

the transaction 

(e.g., involvement 

with local 

specialists and 

contractors such as 

(but not limited to) 

construction 

companies, legal 

teams, etc.)

The prospective bidder considers the involvement of businesses with 

local knowledge to be a key component of its overall strategy. The bidder 

will seek out local real estate brokers who have specialized knowledge of 

local market conditions. In addition, the bidder has long established 

relationships with four minority and women-owned general contractor 

companies in the local area which will be utilized for property repair, 

maintenance, and improvement.

Operational 

capacity of your 

Servicer (e.g., 

current loan 

servicing capacity, 

excess capacity, 

and how your 

Servicer intends to 

modify its 

operations in order 

to accommodate an 

increase in loans 

serviced as a result 

of being awarded 

this Portfolio)

The prospective servicer will leverage its extensive servicing experience 

(over X years of experience). The servicer currently services a portfolio 

of X loans across the United States in X, Y and Z states. The servicer’s 

staff includes approximately X employees in X offices nationwide.

The prospective servicer has extensive experience successfully managing 

the information transfer between servicing platforms, including a recent 

transfer of X loans. The servicer has staff specifically dedicated to loan 

transfer. The servicer utilizes proprietary servicing software, which 

currently has exess capacity to accommodate X additional loans.

Asset 

Management

Approach for 

underwriting, onboarding, and 

transitioning the 

assets into your 

portfolio (e.g., due 

diligence 

practices)

The bidder will employ third-party due diligence firms to conduct loan 

level reviews and will verify missing or questionable collateral, 

compliance, and valuation data. The efforts of all third-party due 

diligence firms will be coordinated by servicer personnel to help ensure 

the quality and consistency of the evaluation of the new data. Data 

verified will include loan terms, negotiated loan modification terms, 

property tax payments due from escrow, and the status of hazard 

insurance. The servicer sets a specific deadline by which all information 

associated with a borrower's account (e.g. loan origination 

documentation, servicing history, customer contact history, etc.) must be 
FDIC Bidder Qualification Application

Page 32 of 32

transferred into its System. 

Approach for 

evaluating and 

categorizing the 

assets

The servicer considers loan status (e.g., non-performing or delinquent) 

and the nature of the collateral (e.g., land, income-producing property, 

personal property) when developing its strategy for servicing the loans. 

Approach for 

servicing and 

managing the 

assets (e.g., 

strategies for 

collaborating with 

borrowers, 

developing assetspecific resolution 

plans)

The servicer employs varied strategies for collaborating with borrowers to 

resolve non-performing loans, examples of which are summarized below:

- Loan Modification - In certain circumstances, the servicer will consider 

modifying loan terms. When considering loan modification for certain 

borrowers, a combination of additional borrower equity investment, 

collateral enhancement, improved lender controls and diminishment of 

potential adverse outcomes will be sought.

- Discounted Payoffs - The servicer will explore the repayments of loans 

which may be negotiated at discounts with either existing owners or 

guarantors or existing sub-debt lenders.

Exit 

Strategy

Approach for 

assigning/assessing 

potential work-out 

strategies

The bidder employs a bottom-up approach to loan resolutions that 

emphasizes the need for the asset manager to fully understand the 

borrower, the history of the loan, the value and potential marketability of 

the collateral, and the investment objectives before determining a 

potential work-out strategy. The bidder will pursue a value-maximizing 

strategy based on the asset manager’s comprehensive asset level analysis.

Asset managers are trained to evaluate various work-out strategies to 

determine the optimal strategy. The bidder encourages loan workouts 

with cooperative borrowers because it finds that loan workouts typically 

produce the best economic result; however, the bidder will aggressively 

manage assets once workouts with borrowers become ineffective..

Various 

disposition 

strategies (e.g., 

market for sale, 

deed in lieu, 

foreclosure, loan 

modification, 

discounted payoffs) for each asset 

class

In addition to the servicing-related strategies highlighted above, the 

bidder intends to utilize the following strategies:

- Loan Sales - In certain cases, some individual loans may be sold as is or 

as modified to third parties, potentially at discounts to the total amounts 

due.

- Foreclosure - In certain cases, taking title to the collateral property and 

repositioning the asset for sale at a later date will represent the best course 

of action for resolving the asset.

Various marketing 

strategies (e.g., 

leverage regional 

realtors) for each 

asset class

In the case of a cooperative open market sale, a deed-in-lieu of 

foreclosure, or foreclosure, the bidder will seek out local real estate 

brokers who have specialized knowledge of local market conditions. The 

bidder will engage these local real estate specialists to perform 

independent valuations of properties and to market the properties. 

Anticipated 

timeframe for 

complete Portfolio 

resolution (e.g., 

five years)

The bidder expects full resolution of the Portfolio to take five years or 

more.