AND FINANCE AUTHORITY
REQUEST FOR PROPOSALS FOR A COMMERCIAL LOAN SERVICING SYSTEM
Colorado Housing and Finance Authority (CHFA or the Authority), is a quasi-
governmental body corporate and political subdivision of the State of Colorado,
conducting its operations without receiving tax dollars or other funding from the state.
CHFA invites qualified companies to submit proposals to provide an automated solution
to support the Commercial Servicing Department in the Loan Servicing Division. CHFA
has a Commercial Servicing Department that services approximately 900 loans that
include both multi-family 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. Any proposal received by CHFA must be valid and binding for a
period of thirty (30) days beyond the submission deadline.
All proposals must be submitted either in paper or electronic format to:
Director, Information Technology
Colorado Housing and Finance Authority
1981 Blake Street
Denver, CO 80202
The deadline for submission is 5:00 pm MST October 22, 2010. No alteration of the
proposal will be accepted or made after submission.
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. 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. An exemption may apply.
3. The proposed solution will need to be compatible with the current CHFA IT
Architecture as described below:
Microsoft SQL Server 2005 or 2008
Microsoft Windows 7 Desktop OS
Microsoft Internet Explorer version 8
VMWare version 4.0
4. The proposed solution will need to support CHFA Commercial Loans Products,
Business Processes, and IT Architecture as described on the following pages.
1. Requests for additional information and/or questions and clarifications not
answered in this RFP should be sent via e-mail by October 8, 2010, only to Rod
Hardin at firstname.lastname@example.org. All questions as well as answers will be posted
in the RFP section of CHFA’s website at www.chfainfo.com/news/RFPs.icm. This
will be available by October 15, 2010 if not sooner.
2. All interested parties who can demonstrate a solution to support the requirements
listed in this RFP are requested to submit a proposal containing evidence they
can meet the expectations previously described.
3. Additional information which is reasonably necessary for the Authority to fairly
and comprehensively evaluate proposals may be enclosed. It should be limited
to information which clarifies and substantiates written responses.
4. During the evaluation process, the Authority 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, the Authority may
request any one or all vendors submitting proposals to make oral presentations
as part of the evaluation process.
5. All submitted proposals become the property of CHFA’s. The information therein
as well as any attachments and any subsequent agreement(s) may become
6. Vendors submitting a proposal for the product and service categories in the RFP
shall provide the following items:
Completed General Information
Completed Key Features Questionnaire
7. By submitting a proposal, vendors agree they waive any claim against the
Authority, and its respective agents, affiliates, officers and employees for
recovery of any costs or expenses incurred in or associated with preparing and
submitting a proposal.
8. CHFA reserves the right to not award a bid after reviewing all responses to this
BID PROCESS TIMELINE
Posting of CLS Evaluation Solution RFP on CHFA Website – September 22, 2010
Submit RFP questions – October 8, 2010
CHFA responses to questions – October 15, 2010
Deadline for Submission of Proposals – October 22, 2010 (5:00 pm MST)
Interviews with Finalist Service Providers - TBD
Selection of Vendor - TBD
1.00 Company Details Vendor Response
1.01 Company Name
1.02 Company Web Site
1.03 Company Address
1.04 Company Size
1.05 Financial Position
1.06 Company Origin / Longevity
1.07 Target Market
1.08 Product Origin / Longevity
1.09 Current Version
Next Version (including target
Number of clients (please provide
1.12 Local Denver Presence
1.13 Professional Services capabilities
1.14 Training capabilities
1.15 Documentation and Online Help
1.16 Quality Release Plan
1.17 SAS70 Compliant
Other comments Vendor may
Key Features Questionnaire
2.00 CHFA Business Process Support Vendor Response
Support for CHFA Multi-Family and
Small Business Loan Product Types
(see Appendix A
2.01 HFA_MultiFamilyProducts.pdf] and Appendix
CHFA_BusinessFinanceProducts.pdf ]. Specify
support for each individual loan
Support for common borrower
2.02 information with multiple loans
associated to borrower.
Support for import data from a
Commercial Loan Production
Systems (Specify all types of
import, XML, etc.)
Specify support for Cashiering
functions with specifics around how
cash is applied to loans and
reconciled on a daily basis.
Support for aggregate escrow
accounting. Which escrow
accounting methods does the
2.05 system support? How does the
system support annual escrow
accounting and borrower shortages
Support for various types of fees
2.06 including fees received, fee
amount, and date.
Support for loan participations
including what percentage is
assigned to each participant. Track
Support for draw requests, change
orders, and disbursements.
Support for field length for large
2.09 loan amounts (100 millions),
escrow balance (100 thousands),
escrow advance (100 thousands),
late fees (10 thousands), and
payment amounts (100 thousands).
Specific length supported for major
fields such as those above.
Support for multiple funding
sources on a single loan.
Support for various types of
interest methods including ARM,
2.11 Step Rates, Interest Only, Default
Interest, Prepaid Interest and Zero
Support for various term payment
2.12 methods including monthly,
quarterly, and annually.
Support for other lien holders in the
2.13 name of the lien holders including
Support for 360 and 365 accrual
methods at the loan level.
Support for suspending the accrual
of interest for a specified period.
Support for multiple book
Support for multiple payments
based on effective dates.
Backdating of payments. Ability to
2.17 stop applying payments (stop
codes).Setting up step rate
payments with effective dates (Rate
Fee association with general ledger
accounts. Ability to generate
appropriate GL entries for JD
Edwards One World XE
Support for handling tax and
insurance payments for escrow
2.19 accounting. Ability to handle
multiple payment accounts to
disburse and track funds. Specify
Hazard, Flood, Mortgage Insurance
handling and interface with HUD
portal for MI payment.
Support for investor
accounting/reporting for Fannie
Mae, Freddie Mac, and Ginnie Mae.
Also includes remittance to
investors. Manual and electronic
filing capability. HUD Reporting?
Support for construction loans
including draws, transfer to
permanent loan, and amortization
Support for Loan Collateral Tracking
including UCC filings, continuation
deadlines, UCC terminations, and
changing the collateral.
Support for billing including loan
statements and/or coupons.
Support for delinquencies and
Support for borrower
2.25 statement follow up to ensure
compliance with stated loan
Support for loan write offs including
appropriate GL entries.
Support for keeping transaction
loan history. Support for keeping
staff login credentials associated
with all loan transactions including
2.27 movement of cash. Specifically
address audit trail capabilities for
loan changes and vendor/payee
changes (Reports, other database
The ability to change basic loan
data without having to restructure
the loan. Identify which cases
require restructuring and which
don’t. Include loan modifications to
interest rate and principle/interest.
We prefer changing the existing
loan rather than cancelling the loan
and setting up a new one.
The ability to pay a third party for
county taxes (CoreLogic) which
then remits payments to Colorado
Out of the box reports for all major
servicing functions (please include
samples of the major reports and a
list of all reports). Describe
capability to report on system flags
such as customer complaints.
Describe the various ways that a
loan and/or borrower can be
located through search such as
Year end statements including
2.32 1098’s, 1099’s, and tape
generation to IRS.
Describe loan history reporting and
the ability to view loan histories for
all transaction types such as
payments, disbursements, etc.
Ability to interface with Consumer
2.34 Reporting Agency (Credit Bureau)
for credit checks.
2.35 Borrower loan web/portal.
Abililty to support fees for GASB
2.36 net fees which is amortizing fees
over the life of the loan.
Electronic submission of portfolio
2.37 and default data to investors such
2.38 Audit Confirmation Letters
Ability to set field edits to require
fields be present or require certain
values. Provide administration
functionality to control field edits.
Ability to customize screens/forms
to flow according to our workflow
and also add user defined fields as
Interfaces to/from Lock Box, ACH,
2.40 and FHA Mortgage Insurance
including scheduler capabilities.
Default Rate Increase support
which includes rate increases above
note rate with a specific payment
Loan write offs including keeping
2.42 the loan on the system for tracking
Service Loans including serviced by
others, serviced for others, tracking
2.43 for various fees including service
fees and late fees with interface to
2.44 Hazard Loss Claim Tracking
Vendor setup including IRS
reporting flag, inactive vendor flag
(should not be able to disburse to
Ability to have different
disbursement levels for various
user groups based on security
profile. Ability to set rules to limit
2.46 disbursements of refunds to
borrower only. All disbursements
(wires, accounts payable, etc.) to
be reflected/accounted for within
loan level record details.
Support for lines of credit including
daily simple interest billings.
Ability to delete disbursement prior
to printing by viewing the
disbursements and asking for
Loan modifications for deferred
payments without impacting loan
amortization including changing
payments and maturity.
Payment processing for balance
Loan paid off in full to include
letters to cancel tax contracts,
insurance coverage, and
notification to HUD if applicable.
Once loan is paid off how long does
history stay available.
General Criteria Vendor Response
The candidate company should be
financially solvent. This includes
3.01 size, revenue, number of
customers, and any likelihood of
The candidate company should be
dedicated to the product. This
3.02 includes being characterized by
innovation and a clear and reliable
future product roadmap.
The candidate company should
maintain on staff professional
services that offer affordable and
available expertise on the product.
The candidate tool should support
the CHFA requirements without
software modification or via system
The candidate tool should provide a
non-technical business user client
3.05 interface that enables the business
the most control over its
The candidate tool should provide
both technical and non-technical
user documentation detailing
system functionality and usability.
The candidate company should
have a standard implementation
3.07 plan for product installation
including detailed client resource
The candidate company should
have a standard detailed release
plan and installation instructions
for product releases.
Other comments Vendor may deem
4.00 Vendor Response
Software should be able to
integrate or utilize an existing
4.01 Microsoft Active Directory
infrastructure for user
The product should have an API
and SDK integration capability.
Role/Function Based Security
4.03 including user, loan field, and user
The software must be installable on
4.04 Windows Server OS, a minimum of
2003 R2 and preferably 2008 R2.
Software must be able to operate
on a VMWare guest server (running
Microsoft Windows Server OS) in a
Multi-site and DR Redundancy
Software must use Microsoft’s SQL
server version 2005 or later, and
preferably support 2008. Database
must be able to be located on
remote database server (not on
Centralized management for all
No client side installations should
be necessary. If client side
installations are necessary,
software should support distribution
software such as Microsoft SCCM.
Other comments Vendor may deem
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
Training hourly rate (Technical/End
Additional Comments / Information
Please provide any additional comments or information that will assist in this