COLORADO HOUSING AND FINANCE AUTHORITY 1981 BLAKE STREET DENVER, CO 80202 REQUEST FOR PROPOSAL CHFA FINAL DOCUMENT REVIEW POSTED: 10/18/2016 PROPOSALS DUE: 11/15/2016 I. Background The Organization The Colorado Housing and Finance Authority (CHFA) is a body corporate and political subdivision of the State of Colorado, established by the Colorado General Assembly for the purpose of increasing the supply of decent, safe and sanitary housing for low and moderate income families; and to promote sound economic development by supporting business enterprises. CHFA does not originate single family mortgages, but purchases first mortgage loans from participating mortgage lenders. In addition, CHFA, from time to time, issues Mortgage Credit Certificates to qualified homebuyers. The Colorado Housing and Finance Authority strongly values diversity and inclusiveness among our customers, employees, vendors and partners. More info on CHFA may be found at the CHFA website, www.chfainfo.com. Home Finance Division Final Document Review Via its Home Finance Division, CHFA acquires first single family mortgage loans (Mortgage Loans) from lenders that choose to and have been approved to participate in its programs (Participating Lenders). These Participating Lenders originate, underwrite, and close Mortgage Loans in accordance with CHFA and applicable insurer, guarantor or investor guidelines. Loan types purchased include Federal Housing Administration (FHA) insured mortgage loans, Veterans Administration (VA) guaranteed mortgage loans, United States Department of Agriculture Rural Development (RD) guaranteed mortgage loans, and Fannie Mae, and Freddie Mac conventional mortgage loans. Participating Lenders are responsible for ensuring that Mortgage Loans meet the requirements of the respective insurer, guarantor or investor. Mortgage Loans must also comply with CHFA s program guidelines. CHFA Page 1
II. Services Sought CHFA is seeking proposals from interested vendors for the performance of: 1) Review of required post-closing Mortgage Loan documentation (Final Documents); and 2) Work with Participating Lenders to correct and/or address post-purchase issues, including quality controlrelated issues, with the Final Documents. III. Proposal Requirements Your response should address all of the following items. 1. Please describe your firm s experience with review and clearing of single family residential mortgage documentation. 2. How familiar is your firm with FHA, VA, RD, Fannie Mae, and Freddie Mac conventional loan programs, particularly those utilized by State or other Housing Finance Authorities (HFAs)? 3. Has your firm conducted review and clearing of Final Documents for other entities? Please describe this experience. 4. What is your firm s capacity for the number of Final Document reviews completed per week? 5. What are your firm s current delivery or turn times for Final Document reviews? Please specify such delivery or turn times both in terms of loan files, as well as in terms of individual trailing documents, if such data is available. 6. What is the level of experience of staff that will be working on CHFA s documents? 7. How quickly can your firm begin reviewing CHFA loan documents, assuming immediate availability of such documents from CHFA? 8. Describe how your firm provides a quality check of your work and assurance to CHFA of quality results in processing our documents. 9. CHFA is subject to Consumer Financial Protection Bureau vendor management requirements. In light of this, how will your firm assist CHFA comply with such required vendor management processes? 10. Please clearly explain your proposed pricing/cost structure. 11. Please provide references for your firm. 12. Please provide a copy of your firm s most recent SOC 1 if available. 13. Please provide copies of your firm s most recent audited financial statements or tax returns. CHFA Page 2
14. Please describe your firm s technological capabilities and means of delivery with regard to receiving, safeguarding, and transmitting personally identifiable information. 15. Please describe your firm s technological capabilities in the following areas: a. Ability to use CHFA s existing systems to process files (CHFA can provide accounts to users to log in remotely to our systems and also provide training) OR b. Ability to integrate with commonly used loan origination systems used by our Participating Lenders (like Encompass, etc.) c. Ability to receive electronic data and electronic documents directly from our Participating Lenders. d. Ability to share that data with our Participating Lenders via an on-line website via pipeline view so they can see status of their loan files and uploaded documents e. Ability to send data to CHFA at least daily if not in real time via an application program interface (API) f. Ability to track files with work flow to produce cycle times g. Ability of the system to apply rules to ensure data quality and accuracy. Rules should be customizable by loan program and product type and should be configurable to fire at different stages of the loan file review h. Ability to send documents to CHFA for placement in our document management system i. Ability to produce CHFA specific documentation j. Ability to send this documentation via email transmission using TLS. k. Ability to perform reporting and analytics on data in your systems using your own reporting tools l. Ability to extract data from your systems at least daily for integration into CHFA s data warehouse. Please provide a sample data field map and how you have done this with other customers m. Please state the type of database structure and product (Microsoft SQL?) and which version of database software n. Ability to handle calls and answer questions on behalf of CHFA with our Participating Lenders. Describe the phone call center technology options available to CHFA and our Participating Lenders. o. Ability to tier our Participating Lenders by performance and have different review thresholds based on volume and performance. Potential to have different workflow paths based on volume and performance. p. Please describe the infrastructure environment of your systems (i.e. describe the data center environment) q. If permitted, describe your service level agreement for system uptime and support of system issues r. Describe your capacity and process to customize your systems for unique CHFA product characteristics which could include unique rules, workflows or data elements CHFA Page 3
s. Describe what safeguards are in place to assure the security and privacy of the Personally Identifiable Information (PII) of our borrowers t. Describe your incident response to security events/incidents. u. Describe your ability to create data files to send to Ginnie Mae, Fannie Mae, and Freddie Mac (i.e. Early Check and Loan Delivery) CHFA will consider all of the following criteria in evaluating the proposals: Experience in Final Document review for single family mortgage loans, with emphasis on state HFA programs Experience with FHA, VA, RD, Fannie Mae, and Freddie Mac conventional loan programs Experience with HFAs and tax-exempt bond financing requirements Experience with legal and regulatory compliance requirements, as they relate to single family mortgage loans; including but not limited to the following: o Single family mortgage loan insurers/guarantors (FHA/HUD, VA, RD) o Dodd-Frank and Consumer Financial Protection Bureau o Ginnie Mae, Fannie Mae, Freddie Mac and secondary market o Mortgage banking or banking regulations as they apply to HFAs o Vendor oversight Best customer experience for our Participating Lenders Best technological experience and ease of use of systems for our Participating Lenders and CHFA Cost Effectiveness of Proposed Solution Best fit for CHFA As part of the RFP please confirm the following: Your firm adheres to Equal Employment Opportunity requirements Your firm maintains insurance coverage as provided in the attached 2016 CHFA Contractor Insurance Requirements document. Proof of insurance will be requested for firm engaged. Your firm conducts background checks on all employees. A background check of any consultants on site for the engagement may be required. Your firm is not debarred or suspended by or under any of the following: Office of Foreign Assets Control (OFAC), Limited Denials of Participation (LDP), the GSA s Excluded Parties List System, the Department of Housing and Urban Development, Fannie Mae, or Freddie Mac. Verification will be conducted on firm engaged. CHFA Page 4
Your firm s understanding that this is a Public Contract for Services, as defined in C.R.S. 8-17.5-101 [an agreement for procurement of services not excluded under C.R.S. 8-17.5-101(6)(b)], and that as required by Colorado law your firm, if chosen, must agree to and sign the language attached hereto and labeled Appendix A. IV. Submission Requirements. 1. All proposals must be submitted in electronic format (pdf). Proposals, which address, in sequence, the information requested above, must be received by 5pm MT 11/15/2016, and should be sent to: RFP-CHFATrailingDocumentReview@chfainfo.com 2. Please make the Subject line RFP Proposal for CHFA Final Document Review. No alteration to the proposal will be accepted after submission. 3. During the evaluation and decision process, CHFA may request additional information or clarifications from responders. At its discretion, CHFA may request certain responders to make oral presentations. 4. CHFA shall not be liable for any expenses, including travel expenses related to preparation of the proposal, any due diligence by the responder and/or CHFA, and the contract negotiation process. 5. CHFA reserves the right to reject any or all proposals after reviewing all responses to this RFP. CHFA is not required by law to conduct this RFP and reserves the right to cancel or withdraw this RFP at any time and for any reason. 6. Requests for additional information and/or questions and requests for clarifications should be sent via e-mail to the attention of Cindy Bradley, HF-Funding Final Document Manager at RFP-CHFATrailingDocumentReview@chfainfo.com. All such communications must be received by 5:00pm MT on10/25/2016. All questions, as well as responses, will be posted in the RFP section of CHFA s website at http://www.chfainfo.com/pages/rfps.aspx. 7. CHFA and the selected vendor will enter into a contract, describing the terms and conditions of the services to be performed, including vendor compensation. 8. All submitted proposals become the sole and exclusive property of CHFA. CHFA Page 5
9. CHFA is a Political Subdivision of the State of Colorado, and, therefore, is subject to the Colorado Open Records Act (C.R.S. 24-72-200.1 Et. Seq.) (CORA). Responders to this RFP (each a Respondent ) acknowledge and agree that the response to the RFP and any other related materials submitted to CHFA are not considered confidential information. Respondents that wish to protect portions of their proposals from public disclosure must make a written request that those records be kept confidential at the time of submission. In addition, Respondents must specifically and conspicuously identify any portion of the proposals that are deemed by them to constitute confidential or proprietary information or trade secrets. Those portions must be readily separable from other portions of the proposal. Respondents identification of material as being exempt from disclosure is not conclusive and responders submitting such requests acknowledge the possibility that such materials may be determined pursuant to law to not be protected from disclosure under the laws governing CHFA and the resulting contract. CHFA will provide Respondents with notice as soon as possible of any request for disclosure of confidential information. The burden is solely on the Respondent to take such actions as they deem necessary and appropriate to shield such materials from disclosure. Each Respondent agrees to reimburse CHFA for, and to indemnify, defend, and hold harmless CHFA, its officers, fiduciaries, employees and agents from and against: (1) any and all claims, damages, losses, liabilities, suits, judgments, fines, penalties, costs, and expenses, including without limitation, attorneys fees, expenses, and court costs of any nature whatsoever (collectively, the Claims ) arising from or relating to CHFA s non-disclosure of any such designated portions of the response or other materials submitted by the Respondent related to this RFP; and (2) any and all Claims arising from or relating to CHFA s public disclosure of any such designated portions of a response or other materials submitted by the Respondent related to this RFP if disclosure is deemed required by law or if disclosure is ordered by a court of competent jurisdiction. 10. CHFA is subject to C.R.S. 8-17.5-102, which provides that, unless there is an applicable exclusion, Colorado state agencies and political subdivisions may not enter into, or renew, a contract for services (labor, time or effort, not involving a specific product) with a contractor who knowingly employs or contracts with an illegal alien to perform work under the contract or who knowingly contracts with a subcontractor who knowingly employs or contracts with an illegal alien. Therefore, if a contract is a public contract for services, the vendor must certify that the vendor does not knowingly employ or contract with an illegal alien; and that the vendor participates in either the Department of Homeland Security/Social Security Administration E-Verify Program or CHFA Page 6
the State of Colorado Department of Labor and Employment Program. Further, there are required contract provisions relating to the vendor s agreement to not knowingly employ or contract with any illegal aliens. 11. Additional information that is reasonably necessary for CHFA to fairly and comprehensively evaluate proposals may be enclosed with a proposal, as long as such information clarifies or substantiates written responses. 12. CHFA is committed to diversity and inclusion with its suppliers to meet the growing needs of its customer base. CHFA staff understands that the purchasing decisions that we and our vendors make can impact the community we serve through People, Planet, Purpose, and Price. The four- P (4P) procurement standards are embedded in our vendor diversity standards to ensure that we are reducing the environmental impact of our purchasing decisions and expanding our diversity outreach, while maximizing the purchasing value of our funds. 13. This RFP and the resulting contract shall be governed by the laws of the State of Colorado and venues for any actions shall lie exclusively in Denver, Colorado. By submitting a response to this RFP, Respondent irrevocably submits to the exclusive personal jurisdiction of the courts located in the City and County of Denver. 14. By submitting a proposal, Respondent agrees to waive any claim(s) it has or may have against CHFA and/or any of the current or former CHFA directors, officers, board members, employees, or agents arising out of or in connection with (1) the administration, evaluation, or recommendation of any proposal (2) waiver of any requirement under this RFP, (3) acceptance or rejection of any proposal, and (4) award of the contract. 15. Written approval from CHFA must be obtained for any media releases regarding an award of the contract by CHFA. Bid Process Timeline Posting of RFP on CHFA Website 10/18/2016 Deadline for any Questions from Responders 5:00 pm MT 10/25/2016 CHFA s Response to Responders Questions 11/1/2016 Deadline for Submission of Proposals 5:00 pm MT 11/15/2016 Interviews with Finalist Service Providers 12/1/2016 Selection of Service Provider TBD CHFA Page 7
Implementation of Engagement TBD CHFA Page 8