Mortgage Warehouse Facility Provider

The Texas Department of Housing and Community Affairs (TDHCA) is seeking proposals for a Mortgage Warehouse Facility Provider to temporarily warehouse mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The selected provider will be responsible for purchasing the securities on their settlement date and selling them on dates specified by TDHCA, with the scope limited to the warehousing of Certificates and not including any responsibility for the pricing, hedging, origination, sale, servicing, or purchase of mortgage loans. TDHCA requires a minimum of 5 years of experience serving as a warehouse provider for at least one state agency and the ability to warehouse up to $1 billion in securities annually. Proposals are due on October 11, 2024, and TDHCA plans to execute the contract by November 1, 2024, with work commencing on December 1, 2024. The initial contract term is expected to be two years, with three one-year renewal options. TDHCA will evaluate proposals based on the Warehouse Facility experience, financial strength of the provider, and economic benefit to TDHCA.

The solicitation includes a Historically Underutilized Business (HUB) Subcontracting Plan (HSP) requirement, where respondents must demonstrate their efforts to subcontract with Texas-certified HUBs for a percentage of the contract work. The HSP outlines the process for identifying subcontracting opportunities, selecting HUB and non-HUB subcontractors, and meeting the state's HUB goals. The selected provider will be required to comply with the HSP requirements throughout the contract term. No specific incumbent vendors or budget ranges are provided in the available information.