commercial loan servicing system rfp

overview

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 conducts its operations without receiving tax dollars or other funding from the State. Our mission is to
strengthen Colorado by investing in affordable housing and economic development. Our vision is that everyone in
Colorado will have the opportunity for housing stability and economic prosperity. More information on CHFA may be
found at the CHFA website http://www.chfainfo.com/.

CHFA is conducting an RFP for a commercial loan servicing system as a best practice to improve commercial loan
services and operational efficiency as well as to ensure CHFA is receiving the best value, services, and pricing. CHFA is
looking for a partner who highly values community engagement with evidence of commitment to investment in people
and communities across the entire State of Colorado.

CHFA invites proposals to provide an automated solution to support the Commercial Servicing Department in the Asset
Management Division. CHFA has a Commercial Servicing Department that services approximately 450 loans that include
both multifamily and small-business loans. CHFA intends to select one vendor to provide a solution and implementation
services for the Authority. CHFA reserves the right to reject any or all proposals and to accept or reject any item or
combination of items in any proposal.

CHFA invites qualified companies to submit.

contents

RFP Submission Requirements ..................................................................................................................... 2

Bid Process/Timeline................................................................................................................................. 2
Qualifications ................................................................................................. Error! Bookmark not defined.
Section I – General Information ................................................................................................................ 7
Section II – Key Features Questionnaire ................................................................................................... 8
Section IV – Technology/Security Requirements .................................................................................... 15
Section V – Licensing / Costs ................................................................................................................... 16
Additional Comments / Information........................................................................................................... 16
RFP Submission Requirements

The deadline for submission is February 3, 2020 5 PM MT. No alteration of the proposal will be accepted or made after
submission. Vendors submitting a proposal for the product and service categories in the RFP shall provide the following
items:
• Cover Letter
• Completed General Information
• Completed Key Features Questionnaire
• Reference List

Any proposal received by CHFA must be valid and binding for a period of one hundred twenty (120) days beyond the
submission deadline.

All proposals must be submitted in electronic format to:

Rob Horn
Manager, Information Technology Solutions
Colorado Housing and Finance Authority
1981 Blake Street
Denver, CO 80202
rhorn@chfainfo.com

Bid Process/Timeline
• Posting of RFP on CHFA website – December 31, 2019
• Requests for additional information and/or questions and requests for clarification – January 15, 2020, at
5:00pm MT.
o Requests for additional information and/or questions and requests for clarification may be sent to Rob
Horn at rhorn@chfainfo.com and/or Darla Miller at dmiller@chfainfo.com. All such communications
must be received by January 15, 2020, at 5:00pm MT.
o All questions, as well as responses, will be posted in the Requests for Proposal section of CHFA’s website
by January 24, 2020, at 5:00pm MT.
• Deadline for submission of proposals – February 3, 2020, at 5:00pm MT
• Interviews with finalists are anticipated to will be scheduled in March 2020 – Exact dates TBD
• Anticipated Selection of vendor(s) – April 2020 – Exact date TBD

In addition, CHFA reserves the right to negotiate the terms of the responses with any respondent prior to commencing
services and to negotiate with other respondents if negotiations are not concluded with any selected respondent(s).

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Proposal Requirements

1. CHFA and the selected vendor will enter into a contract or the equivalent, describing the terms and conditions of
the services to be performed, including vendor compensation.
2. All submitted proposals become the sole and exclusive property of CHFA. All submitted proposals become
CHFA’s property. The information therein as well as any attachments and any subsequent agreement(s) may
become public records.
3. Additional information which is reasonably necessary for CHFA to fairly and comprehensively evaluate proposals
may be enclosed. Content should be limited to information which clarifies and substantiates written responses.
4. During the evaluation process, CHFA reserves the right to request additional information or clarifications from
the vendor submitting the proposal, or to allow corrections of errors or omissions. At its discretion, CHFA may
request any one or all vendors submitting proposals to make oral presentations as part of the evaluation
process.
5. As a political subdivision of the State of Colorado, CHFA is subject to the Colorado Open Records Act (CORA)
C.R.S. §§ 24-72-201, et seq., which requires CHFA to permit inspection and copying of certain public records.
Responders to this RFP (each a “Respondent”) acknowledge and agree that, notwithstanding anything
contained therein or in any transmittal, all documents submitted to CHFA pursuant to this RFP are not
considered confidential or proprietary in any way and may be subject to inspection by the public. By submitting
a proposal, Respondents expressly authorize CHFA to disclose such proposals and any related information at
CHFA’s sole discretion. Respondents should not include any information deemed privileged or confidential in
their responses.
6. 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 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.
7. 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.
8. 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. CHFA reserves the right to reissue a new RFP for the same or similar services or to postpone proposal
deadlines for its own convenience.
9. 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 we are reducing the environmental impact of our
purchasing decisions and expanding our diversity outreach, while maximizing the purchasing value of our funds.
10. 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.
11. Written approval from CHFA must be obtained for any media releases regarding an award of the contract by
CHFA.
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 12. 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, disclosure, 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.

CHFA intends to evaluate RFP responses based on the following criteria to determine finalists to bring in for
presentations (not listed in priority order):
• Evidence of community engagement and investment
• Pricing
• Operational impact, customer focus and relationship management
• Alignment with CHFA’s culture and values
• Solution experience and strength

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qualifications
2.1 CHFA and the selected vendor(s) will enter into a software and vendor agreement describing the general terms
under which the solution will be supported, and the services will be performed, subject to the execution of
individual statements of work.

2.2 CHFA is covered by C.R.S. 8-17.5-101, which provides that Colorado state agencies and political subdivisions may
not enter into, or renew, a contract for services with a contractor who knowingly employs or contracts with an
illegal alien to perform work under the contractor or who knowingly contracts with a subcontractor who knowingly
employs or contracts with an illegal alien. Therefore, unless there is an applicable exception, the vendor(s)
selected will need to certify that the Vendor does not knowingly employ or contract with an illegal alien: and that
the Vendor participates in the Department of Homeland Security and Social Security Administration E-Verify
Program or the State of Colorado Program.

2.3 The proposed solution will need to be compatible with CHFA IT Architecture as described below:

If any portion of the proposed software solution needs to be installed on CHFA premises, it must be compatible
with the following platforms:

• Microsoft Server OS
• Microsoft SQL Server
• Microsoft Windows 10 clients
• Current versions of Internet Explorer and/or Chrome
Please be sure to specify any platform or architecture needs and restrictions in your response.

2.4 The proposed solution will need to support CHFA Commercial Loans Products, Business Processes, and IT
Architecture as described on the following page.

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Section I – General Information
1.00 Company Details Vendor Response

1.1 Company Name

1.2 Company Web Site

1.3 Company Address

1.4 Company Size

State, as appropriate, your parent,

1.5 subsidiaries, affiliates, and other related
entities.

1.6 Financial Position

1.7 Company Origin / Longevity

1.8 Target Market

1.9 Product Origin / Longevity

1.10 Current Version

Next Version (including target release

1.11
date)

Number of clients (please provide

1.12
references)

1.13 Local Denver Presence

1.14 Professional Services capabilities

1.15 Training capabilities

1.16 Documentation and Online Help

1.17 Quality Release Plan

Provide your dispute resolution and

1.18
customer service/feedback process.
 Share your most recent customer
1.19 satisfaction survey results with your
product/service.

CHFA highly values diversity and

1.20 inclusion. Please explain your diversity
and inclusion practices.

Describe how your firm can support

CHFA’s mission, vision, and brand.
1.21
https://www.chfainfo.com/about/Pages
/history.aspx

1.22 SAS70 Compliant

What are the key differentiators

1.23
between you and your competitors?

Other comments Vendor may deem

1.24
relevant for this section of the RFP.

Section II – Key Features Questionnaire

2.00 CHFA Business Process Support Vendor Response

Support for common borrower

2.1 information with multiple loans
associated to borrower.

Support for data import from a

2.2 Commercial Loan Production Systems
(Specify all types of import, XML, etc.)

2.3 Specify Loan Amortization functions.

Specify support for Cashiering functions

2.4 with specifics around how cash is
applied to loans and reconciled daily.

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 Support for escrow accounting. Which
escrow accounting methods does the
2.5 system support? How does the system
support annual escrow accounting and
borrower shortages and overages?

Support for various types of fees and

associated accruals, including stacked
2.6
fees, fees received, fee amount, and
date.

Support for loan participations including

2.7 what percentage is assigned to each
participant. Track payment splits.

Support for field length for large loan

amounts (100 millions), escrow balance
(100 thousands), escrow advance (100
thousands), late fees (10 thousands),
2.8
and payment amounts (100 thousands).
Specific length supported for major
fields such as those above, including
allowable characters for check printing.

Support for reserve accounts. CHFA

reserve accounts are replacement
reserves, operating reserves,
construction reserves, etc... these are
2.9
funded upfront or monthly and then are
drawn from as needed to address the
needs of a project.

Support for multiple funding sources on

2.10
a single loan.

Support for various types of interest

methods including ARM, Step Rates,
2.11
Interest Only, Default Interest and Zero
Percent.

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 Support for various term payment
methods including monthly, quarterly,
2.12
and annually. Include ability to track
cash flow notes.

Support for other lien holders in the

name of the lien holders. IE: CHFA Loan
Programs:

2.13 • Quality Investment Capital (QIC)

• Quality Agricultural Loan (QAL)

https://www.colorado.gov/pacific/treasury/
divisions-and-programs

Support for 360/360, ACT/ACT, and 365

2.14
accrual methods at the loan level.

Support for suspending the accrual of

2.15
interest for a specified period.

Support for multiple book accounting

2.16
methods.

Support for multiple payments based on

effective dates. Backdating of payments.
2.17 Ability to stop applying payments (stop
codes). Setting up step rate payments
with effective dates (Rate and P&I)

Fee association with general ledger

accounts. Ability to generate
2.18
appropriate GL entries for Sage Intacct
solution.

Support for handling tax and insurance

payments for escrow accounting. Ability
2.19
to handle multiple payment accounts to
disburse and track funds.

2.20 Support for investor accounting /

sweeping funds to trustee accounts. Also

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 includes remittance to investors. Manual
and electronic filing capability.

Support for construction loans including

draws, disbursements, conversion to
2.21
permanent loan, and amortization begin
date.

Support for Loan Collateral Tracking

including Uniform Commercial Code
2.22
(UCC) filings, continuation deadlines, and
changing the collateral.

Support for billing including loan

2.23
statements and/or coupons.

Support for delinquencies and

2.24
foreclosures.

Support for borrower annual financial

2.25 statement follow up to ensure
compliance with stated loan provisions.

Support for loan write offs including

2.26
appropriate GL entries.

Support for keeping transaction loan

history. Support for keeping staff login
2.27 credentials associated with all loan
transactions including movement of
cash.

The ability to change basic loan data

without having to restructure the loan.
Identify which cases require
2.28
restructuring and which don’t. Include
loan modifications to interest rate and
principle/interest.

The ability to pay a third party for county

2.29 taxes (CoreLogic) which then remits
payments to Colorado Counties

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 Out of the box reports for all major
servicing functions (please include
2.30
samples of the major reports and a list of
all reports).

Describe the various ways that a loan

2.31 and/or borrower can be located through
search such as name.

Yearend statements including 1098’s,

2.32
1099’s, and generation of IRS data file.

Describe loan history reporting and the

ability to view loan histories for all
2.33
transaction types such as payments,
disbursements, etc.

Ability to interface with Credit Bureaus

2.34
for credit checks.

2.35 Borrower loan web/portal.

Electronic submission of portfolio and

2.36
default data to investors such as HUD.

2.37 Generation of Audit Confirmation Letters

Collateral and insurance tracking

including UCC filings, contact
2.38 information, continuation / maturity
dates, and changing the collateral for a
loan.

Interfaces to/from Lock Box, ACH, and

2.39
FHA Mortgage Insurance.

Default Rate Increase support which

2.40 includes rate increases above note rate
with a specific payment date.

Loan write offs including keeping the

2.41 loan on the system for tracking
purposes.

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 Service Loans including serviced by
others, serviced for others, tracking for
2.42
various fees including service fees and
late fees with interface to GL.

2.43 Hazard Loss Claim Tracking

Vendor setup including IRS reporting

flag, inactive vendor flag (should not be
2.44
able to disburse to inactive vendors) and
W9 tracking.

Ability to have different disbursement

2.45 levels for various user groups based on
security profile.

Support for lines of credit including daily

2.46
simple interest billings.

Loan modifications for deferred

payments without impacting loan
2.47
amortization including changing
payments and maturity.

Payment processing for balance

2.48
payment reversals.
Describe system's escrow analysis
2.49
process.

Describe version /updating process

2.50
and/or SAAS or cloud-based software.

Other comments Vendor may deem

2.51
relevant for this section of the RFP.

Section III – General Criteria

3.00 General Criteria Vendor Response

3.1 3. Describe how your company should be

1 financially solvent. This includes size,

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 revenue, number of customers, and any
likelihood of acquisition.

Describe how your company should be

dedicated to the product. This includes
3.2 being characterized by innovation and a
clear and reliable future product
roadmap.

Describe how your company should

maintain on staff professional services
3.3
that offer affordable and available
expertise on the product.

The candidate tool should support the

3.4 CHFA requirements without software
modification or via system extensibility.

The candidate tool should provide a

non-technical business user client
3.5
interface that enables the business the
most control over its applications.

The candidate tool should provide both

technical and non-technical user
3.6
documentation detailing system
functionality and usability.

Describe how your company should

have a standard implementation plan
3.7
for product installation including
detailed client resource requirements.

Describe how your company should

have a standard detailed release plan
3.8
and installation instructions for product
releases.

Other comments Vendor may deem

3.9
relevant for this section of the RFP.

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Section IV – Technology/Security Requirements
4.00 Technology/Security Requirements Vendor Response

Software should be able to integrate or

utilize an existing Microsoft Active
4.1
Directory infrastructure for user
authentication.

The product should have an API and SDK

4.2
integration capability.

Role/Function Based Security including

4.3
user, loan field, and user group.
CHFA Architecture is based upon Microsoft
compatible with the following platforms:

• Microsoft Server OS
• Microsoft SQL Server
• Microsoft Windows 10 clients
4.4 • Current versions of Internet Explorer
and/or Chrome

Identify the proposed solutions platform /

architecture solution(s), needs and
restrictions in your response.

Software must be able to operate on a

VMWare guest server (running Microsoft
4.5
Windows Server OS) in a production
environment.

4.6 Multi-site and DR Redundancy Support

Centralized management for all software

4.7
components

Describe client installation requirements,

4.8 if any, and what tools facilitate updates
to the software.

Other comments Vendor may deem

4.9
relevant for this section of the RFP.

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Section V – Licensing / Costs
5.0 Licensing / Costs Vendor Response

5.1 License Model

5.2 License Cost

5.3 Maintenance & Support

5.4 Implementation Cost Model

5.5 Average License Deal

5.6 Average Implementation Cost

5.7 Average Implementation timeframe

Other comments Vendor may deem

5.8
relevant for this section of the RFP.

Additional Comments / Information

Please provide any additional comments or information that will assist in this evaluation.

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