Loan Servicing System RFP

The Illinois Housing Development Authority (IHDA) is seeking proposals for a Loan Servicing System to handle the servicing of residential single-family mortgage loans. The initial contract term is four years, with the option to renew for up to three additional two-year terms, for a total potential contract term of ten years. The RFP outlines detailed mandatory and desirable requirements for the Loan Servicing System, including functionality for correspondent investor workflow, loan onboarding, servicing transactions, insurance and loan type handling, escrow processing, and workflow automation. Proposals are due by March 6, 2023 at 12PM CST, and IHDA will only accept electronic submissions through the BidBuy system, as paper responses will not be accepted. The RFP also includes specific information technology, security, development, testing, and licensing requirements.

This RFP does not include any small business, minority contractor, or veteran small business participation goals. IHDA currently utilizes Encompass for loan origination and has approximately 45,000 active loans and 10,000 inactive loans that will need to be converted to the new system. IHDA currently uses Dovenmuehle (DMI) and US Bank as sub-servicers, and the new system must be able to reconcile data with these external servicers. IHDA anticipates onboarding approximately 7,000 new loans per year, with a breakdown of 37% repayable, 52% forgivable, and 11% deferred second mortgages. Pricing must be submitted using the provided Pricing Document template, but the RFP does not specify a budget range or potential award value.