Vendor Q and A Final~6.pdf

Illinois Housing Development Authority

Loan Servicing System RFP

22-551HDA-INFOT-B-32880

Vendor Questions and Answers

1. Is there a pre-submission conference?

A. No

2. Are the Offers to be submitted electronically through the BidBuy system or are they to be submitted in separately sealed packets delivered to Amanda Carone, 111 E. Wacker

Drive, Suite 1000 Chicago, IL 60601?

A. Please see the Notice of Electronic Submission Only document attached in

BidBuy.

3. Development and Testing: test environment configuration (memo, space, and patching) is an exact duplicate of the production environment. Please provide a more exact definition of memo and space?

A. Development and Testing environment configuration should be a replicate of

Production. All modules, features, application security, data layout and/or tools should be replicated. Non-Production should be an exact duplicate of Production environment so that behavior is duplicated in the Testing and Development environments.

4. M.14: The software application must be completely responsive with support for Android and iPhone/Ipad mobile platforms. Does the entire application need to work on a mobile device, or only the customer service functionality accessed by the mortgagors directly?

A. At minimum, the website should be responsive to be used on a mobile device.

5. D.2 Describe/show how the Software Application can receive data from an external company (i.e. master servicer, sub servicer). Does IHDA desire a Servicer Reconciliation module separate from Loan Servicing, or do you require the ability to reconcile to outside servicers within the same Loan Servicing platform as is used to service loans internally?

A. For Homeownership

i. Latter. IHDA is looking to have payment data transmitted daily from our sub-servicers into the Loan Servicing Platform and house data within.

IHDA would want to reconcile the data in the Servicing System to our outside sub-servicers.

6. D.10 Describe/show how the software application can handle the application of payments based on multiple loans with varying items by property. Could you provide an example of what is meant by this requirement?

A. For Homeownership

i. This would be in the form of a daily EDI file posting the payment amount to the individual loan based on payment type (regular payment, reversal, curtailment, etc.)

7. D.13 Describe, in detail, any capacity the software application has to handle tax credits.

What specific functionality is desired? There are several elements to tax credits involving both single family and multifamily loans. Any further detail would be appreciated.

A. For Homeownership

i. General servicing and monitoring along with holding documents such as the extended use agreement. Capture the parties involved along with the terms and repayment until the life of the tax credit

8. What will the size of the loan portfolio that needs to be converted from 1) internal databases and 2) external servicers?

A. For Homeownership

i. External – 0 loans

ii. Internal – Approximately 55,000 loans; totals include active and paid off loans

1. Active – App. 45,000 loans, varying between 1st lien and 2nd loans

(grants, forgivable, deferred, repayable)

2. Inactive – App 10,000 cancelled or paid off loans

9. Is the Utilization Plan in Category I of the Commitment to Diversity document required if there is no BEP or VEP goal through the solicitation?

A. There is no Utilization Plan requirement as there is no BEP goal.

10. Are responses required for the Business Requirements, Information Technology

Requirements, Development and Testing, and Licensing Requirements listed in section

D.2 and the Minimum Mandatory Requirements listed in Section D.6? Or are responses only required for the Mandatory Requirements listed in section D.6?

A. Vendors must provide responses for all mandatory and desirable requirements found in Section D.6.

11. Which Loan Origination solutions will IHDA be using for new loans?

A. IHDA currently utilizes Encompass for the LOS.

12. How many current Servicing systems will be converted?

A. Two (2).

13. Is a subservicer currently involved? If so, what subservicer?

A. Yes, IHDA currently uses Dovenmuehle (DMI) and US Bank.

14. As it relates to Section D, Business Requirements, please provide details on use cases for loan types identified as: Straight Line, Surplus Cash, Variable, and 0% Interest

A. For Homeownership

i. We currently only utilize the 0% interest for our repayable DPAs however the option for other loan types may be used in the future.

15. M.22 Confidential information must not be stored on any server or system/error logs.

Which of the following is the proper interpretation for this question?

(1) Confidential information should not be stored on any:

A. Server

B. System/error logs

(2) Confidential information should not be stored on any error logs (e.g., server, system)

A. Confidential information must not be stored on any server or system/error logs.

16. D.7 - We often see pre-funded related activities performed in the Loan Origination

System. Can IHDA provide insights into the IHDA’s current process for using the

Servicing system on prefunded loans?

i. All prefunding and funding functions will be handled within IHDA’s

LOS. Loans are boarded into IHDA’s servicing system only once they have been funded.

17. D.12 - Can IHDA provide detail into the usage of grants? For example: subsidizing the loan, down payment assistance, etc.

i. IHDA primarily provides down payment assistance (DPA)

18. D.13 - Can IHDA provide details the Tax Credit support?

i. For Homeownership

1. General servicing and monitoring along with holding documents such as the extended use agreement. Capture the parties involved along with the terms and repayment until the life of the tax credit

19. D.16 - Can IHDA provide examples of the Forecasting support desired?

i. One example is projections of loans that are coming to maturity within the next ninety (90) days

ii. Estimated delinquency/foreclosure rates

20. Regarding the ~51,000 Legacy Loans, how many are active loans, inactive loans?

A. For Homeownership

i. Active – App. 45,000 loans, varying between 1st lien and 2nd loans (grants, forgivable, deferred, repayable)

ii. Inactive – App 10,000 cancelled or paid off loans

21. Regarding the ~51,000 Legacy Loans, are these a mixture of 1sts and 2nds as outlined in the legend below for ‘*Fees for Loans’?

*Fees for loans Includes any set cost on a per loan basis for setting up / boarding into the system for servicing.

Assume 7,000 1st mortgage loans, each with a corresponding 2nd mortgage DPA loan, are boarded each year. 2nd Mortgage breakout can be estimated at 37% Repayable, 52% Repayable, and 11% Deferred.

**Import of Legacy

Data from current

Servicing System(s)

Includes import of legacy data from current servicing system(s) into proposed Vendor's system. Approximate number of Legacy loans

~51,000.

A. Yes, they are a mix of 1st mortgages and 2nd loans. However, the above is a projection of current future / expected volume, while the legacy loans would majority be 2nd loans.

22. Does The University of Illinois at Chicago constitute a unit of the State of Illinois from a contracting perspective?

A. Regarding Step 8 of the Financial Disclosures, contracts with the University of

Illinois at Chicago should be included.