Rehab Loan and New Construction Title Company

The City of Madison Community Development Division issued a Request for Bids (RFB) 10070 for a Rehab Loan and New Construction Title Company to provide comprehensive title and closing services for its Rehabilitation Loan Programs. The procurement seeks a qualified vendor to facilitate loan closings and manage escrow accounts for rehabilitation and new construction projects. Specific services include document preparation, loan closing procedures, title insurance issuance under ALTA Mortgage Policy standards, construction escrow account management, and loan fund disbursement. Bidders were required to submit Forms A through E, which included a signature affidavit, vendor profile, cost proposal, and three references. The RFB specified a fixed, all-inclusive fee structure with a not-to-exceed amount per loan closing. Key dates included a question submission deadline of October 27, 2021, with answers posted by November 2, 2021, and bid submissions due on November 10, 2021, at 2:00 PM CST via email to bids@cityofmadison.com. The contract term is three years with two optional one-year extensions, allowing potential price increases in years two and three subject to City approval.

First American Title Company was awarded the contract with a flat fee of $925.00 per loan closing. The procurement includes provisions for local vendor preference and applies to registered suppliers. Contractors employing 15 or more employees with $50,000 or more in annual aggregate business with the City must comply with the City's Affirmative Action Ordinance and file an approved plan within thirty days of contract execution. Professional liability insurance of at least $1,000,000 must be maintained for six years after service acceptance. The City of Madison is exempt from federal excise taxes and state sales taxes. The contractor is responsible for collecting all title and recording costs, application fees, and service fees at closing. While no specific set-aside designations for disadvantaged enterprises were explicitly detailed, the RFB's requirements suggest a competitive bidding process open to qualified title companies capable of meeting the specified service and insurance requirements.