REQUEST FOR PROPOSALS MASTER SERVICER FOR SINGLE FAMILY MORTGAGE LENDING PROGRAM

Transcription

1 REQUEST FOR PROPOSALS MASTER SERVICER FOR SINGLE FAMILY MORTGAGE LENDING PROGRAM September 2013 RFP: MSSF-001 Proposals must be received no later than 1:00 p.m., CDT Friday, October 18 th, 2013 Master Servicer RFP September 2013 Page 1

2 ARTICLE INTRODUCTION 1.1 PURPOSE The Iowa Finance Authority (the Authority ) is seeking proposals from qualified firms to serve as Servicer for the Single Family Mortgage Loans ( Mortgage Loans ) originated under the Authority s Single Family mortgage financing program (the Program ) and as specified in this Request for Proposals ( RFP ). The servicing provided will be in accordance with an agreement that the selected Servicer shall execute by and between the Authority, the Trustee and the selected Servicer. The agreement shall also include the Mortgage Origination Agreement ( MOA ) by and between participating lenders, the Servicer, and the Authority. The servicing shall also be provided in accordance with this RFP, the applicable documents associated with any bonds issued by the Authority, and all applicable laws, regulations and rules. The Authority intends to select a Servicer to provide purchasing, pooling, selling and servicing of Mortgage Loans and consulting on overall program design and performance with the Authority staff for the purpose of providing servicing for the Mortgage Loans. The Servicer will be responsible for the purchasing, pooling, selling and servicing of all existing and new programs or products designed by the Authority to enhance the Program. The Authority intends to award a one (1) year contract beginning on or about January 1, 2014, and ending on December 31, 2014, with up to four (4) additional one (1) year extensions at the sole discretion of the Authority. This RFP is designed to provide Respondents with the information necessary for the preparation of competitive bid proposals. The RFP process is for the Authority s benefit and is intended to provide the Authority with competitive information to assist in the selection process. This RFP is not intended to be comprehensive. Each Respondent is responsible for determining all factors necessary for submission of a comprehensive bid proposal. 1.2 BACKGROUND INFORMATION The Iowa Finance Authority was established in 1975 pursuant to what is now Chapter 16 of the Code of Iowa, (the Act ), to undertake programs which assist in the attainment of qualified housing, by encouraging the investment of private capital and stimulating the construction and rehabilitation of adequate housing through the use of public financing. The Authority has established two single family financing programs: the FirstHome Program and the Homes for Iowans Program. Under these Programs, the Authority issues bonds (the Bonds ) from time to time to provide funds to the trustee who, on behalf of the Authority, purchases mortgage-backed GNMA securities, guaranteed as to timely payment of principal and interest by the Government National Mortgage Association (GNMA), Master Servicer RFP September 2013 Page 2

3 mortgage-backed FNMA Securities, guaranteed as to payment of principal and interest by Fannie Mae, and mortgage-backed FHLMC Securities, guaranteed as to payment of principal and interest by Freddie Mac, each of which is backed by pools of Mortgage Loans which have been made by participating lenders to qualified persons to finance the purchase of single family residential housing located within the State of Iowa (the State ), all in accordance with agreements executed by the Authority, the trustee, the servicer and certain lenders. The Authority expects that lenders will originate between 1,500 and 3,000 FHAinsured, VA-guaranteed, RD-guaranteed or conventionally insured loans per calendar year and sell them to the Servicer at 100% of the current Mortgage Loan balance. Conventional loans include loans that conform to the current Fannie Mae Selling and Servicing Guide (the Fannie Mae Guide ) and other mortgage program agreements that the Authority may negotiate. In connection with each Mortgage Loan, the Servicer will pay an agreed servicing acquisition fee to the Authority. Under the direction from the Authority, the Servicer will pool loans for GNMA, Fannie Mae or Freddie Mac securities and will sell the securities to the Trustee or to another purchaser at prices determined by the Authority. In addition to the normal sales of MBSs to the Trustee, the Servicer must also agree to execute cash sales of whole loans to third parties, as directed by the Authority. The Servicer will enter into agreements with the Authority and each participating lender (the MOA) which will be the sole purchasing agreement for the Mortgage Loans and will enter into a Mortgage Loan and Mortgage-Backed Security Purchase Agreement with the Authority and a Servicing Agreement with the Authority and the Trustee, collectively, the Servicing Agreement, all in forms acceptable to the Authority. ARTICLE 2 -- ADMINSTRATIVE INFORMATION 2.1 ISSUING OFFICER The Issuing Officer, identified below, is the sole point of contact regarding the RFP from the date of issuance until selection of the successful firm or firms. Deborah Haugh Director of Single Family Production Iowa Finance Authority 2015 Grand Avenue Des Moines, Iowa Deb.Haugh@iowa.gov Master Servicer RFP September 2013 Page 3

4 2.2 COMMUNICATION REGARDING THE RFP From the issue date of this RFP until announcement of the successful firm, firms may contact only the Issuing Officer via regarding this RFP. Verbal communications, facsimile transmissions, and hard copy documents will not be accepted. Firms may be disqualified should they contact any Authority Board Member or employee other than the Issuing Officer regarding this RFP. 2.3 PROCUREMENT SCHEDULE The Authority has established the following schedule for selection of a master servicer: Event Date RFP Issuance Date September 13, 2013 Written Questions & Requests for Clarification Due September 20, 2013 Written Responses to Questions Posted September 27, 2013 Bid Proposal Submission Deadline By 1:00 p.m. CDT, October 18, 2013 Evaluation of Bids October 18-25, 2013 Recommendation to Board of Directors November 6, 2013 Announcement of Award November 6, 2013 The above schedule is subject to change upon notification on the Authority s website, ACCESS TO RFP DOCUMENTS This document, amendments, questions received, and related responses will be posted at: Each firm is advised to check this website periodically. 2.5 SUBMISSION OF WRITTEN QUESTIONS Interested parties are invited to submit any questions and requests for clarifications regarding the RFP via to the Issuing Officer on or before 11:59 p.m., (CDT), September 20, If the questions or requests for clarifications pertain to a specific section of the RFP, the page and section number(s) must be referenced. Written responses to questions and requests for clarification will be posted to the Authority s website on or before September 27, Written responses will be considered part of the RFP. Master Servicer RFP September 2013 Page 4

5 2.6 AMENDMENT TO THE RFP The Authority reserves the right to amend the RFP at any time. If the amendment occurs after the closing date for receipt of bid proposals, the Authority may, in its sole discretion, allow firms to amend their bid proposals in response to the amendment. 2.7 COST OF PREPARING THE BID PROPOSAL The cost of preparation and delivery of the bid proposal are solely the responsibility of the submitting firm. 2.8 REJECTION OF BID PROPOSALS The Authority reserves the right to reject any or all bid proposals, in whole and in part, received in response to this RFP. Issuance of this RFP in no way constitutes a commitment by the Authority to award a contract. This RFP process is for the Authority s benefit and is intended to provide the Authority with competitive information to assist in the selection of a mortgage loan servicer. This RFP is not intended to be comprehensive and each Respondent is responsible for determining all factors necessary for submission of a comprehensive bid proposal. 2.9 DISQUALIFICATION The Authority may reject proposals outright for any one of the following reasons: 1. The Respondent fails to deliver the bid proposal by the due date and time. 2. The Respondent states that a service requirement cannot be met. 3. The Respondent's response materially changes a service requirement. 4. The Respondent s response limits the rights of the Authority. 5. The Respondent fails to include information necessary to substantiate that it will be able to meet a service requirement. 6. The Respondent fails to respond to the Authority's request for information, documents, or references. 7. The Respondent fails to include any signature, certification, authorization, stipulation, disclosure or guarantee requested in section 4 of this RFP. 8. The Respondent presents the information requested by this RFP in a format inconsistent with the instructions of the RFP. 9. The Respondent provides misleading or inaccurate responses NONMATERIAL VARIANCES The Authority reserves the right to waive or permit cure of nonmaterial variances in the bid proposal if, in the judgment of the Authority, it is in the Authority s best interest to do Master Servicer RFP September 2013 Page 5

6 so. In the event the Authority waives or permits cure of nonmaterial variances, such waiver or cure will not modify the RFP specifications or other contract requirements if the Respondent is awarded the contract. The determination of materiality is in the sole discretion of the Authority REFERENCE CHECKS The Authority reserves the right to contact any reference to assist in the evaluation of the bid proposal, to verify information contained in the bid proposal and to discuss the Respondent s qualifications INFORMATION FROM OTHER SOURCES The Authority reserves the right to obtain and consider information from other sources concerning a Respondent, such as the Respondent s capability and performance under other contracts VERIFICATION OF BID PROPOSAL CONTENTS The content of a bid proposal submitted by a Respondent is subject to verification BID PROPOSAL CLARIFICATION PROCESS The Authority reserves the right to contact the Respondent after the submission of bid proposals for the purpose of clarifying a bid proposal to ensure mutual understanding. The Authority will not consider information received if the information materially alters the content of the bid proposal. An individual authorized to legally bind the Respondent shall sign responses to any request for clarification. Responses shall be submitted to the Authority within the time specified in the request. Failure to comply with requests for additional information may result in rejection of the bid proposal as noncompliant DISPOSITION OF BID PROPOSALS All proposals become the property of the Authority and shall not be returned to the Respondent unless all bid proposals are rejected or the RFP is cancelled CONFIDENTIAL TREATMENT AND PUBLIC RECORDS REQUESTS The Authority will treat all information submitted by a Respondent as confidential information up to the announcement of the successful bid. After that announcement, all bid proposals will be open to public examination as governed by Iowa Code chapter COPYRIGHTS By submitting a bid proposal, the Respondent agrees that the Authority may copy the bid proposal for purposes of facilitating the evaluation of the bid proposal or to respond to requests for public records. The Respondent consents to such copying by submitting a bid proposal and warrants that such copying will not violate the rights of any third party. The Master Servicer RFP September 2013 Page 6

7 Authority shall have the right to use ideas or adaptations of ideas that are presented in the bid proposals RELEASE OF CLAIMS By submitting a bid proposal, the Respondent agrees that it will not bring any claim or cause of action against the Authority based on any misunderstanding concerning the information provided herein or concerning the Authority s failure, negligent or otherwise, to provide the firm with pertinent information as intended by this RFP PRESENTATIONS Firms may be required to make a presentation of the bid proposal. The presentation, if necessary, will occur at the Authority s offices. The determination as to need for presentations, the location, order, and schedule of the presentations is at the sole discretion of the Authority EVALUATION OF BID PROPOSALS SUBMITTED Bid proposals that are timely submitted and are not subject to disqualification will be reviewed in accordance with Article 5 of the RFP CHOICE OF LAW AND FORUM This RFP and any resulting agreements are to be governed by the laws of the State. Changes in applicable laws and rules may affect the award process or the resulting agreements. Respondents are responsible for ascertaining pertinent legal requirements and restrictions. Submission of a bid proposal constitutes agreement that any and all litigation or actions commenced in connection with this RFP shall be brought in Iowa District Court for Polk County RESTRICTIONS ON GIFTS AND ACTIVITIES Iowa Code Chapter 68B restricts gifts which may be given or received by state employees and requires certain individuals to disclose information concerning their activities with state government. Respondents are responsible to determine the applicability of this Chapter to their activities and to comply with the requirements. In addition, pursuant to Iowa Code section 722.1, it is a felony offense to bribe or attempt to bribe a public official NO MINIMUM GUARANTEED The Authority anticipates that the selected Respondent will provide services as requested by the Authority. The Authority will not guarantee any minimum compensation will be paid to the Respondent or any minimum usage of the Respondent s services. ARTICLE SCOPE OF SERVICES Master Servicer RFP September 2013 Page 7

8 This section includes a list of the required services to be provided by the Respondent if selected. 3.1 REQUIRED SERVICES A. Purchase and service qualified loans offered for sale from any lender approved for participation in the Program. The Program will include Mortgage Loans which will be FHA-insured, VA guaranteed, RD 502 Guaranteed, RD leveraged or conventional Mortgage Loans and may be subject to certain imposed volume restrictions at the Authority s discretion. B. Review lender applications for participation in the Program and enter into Mortgage Origination Agreements with lenders meeting the approval criteria which shall be adopted as part of the Servicing Agreement. The Authority shall have the right to deny participation by any lender at its sole discretion. C. Under direction from the Authority, pool and assign the FHA, VA and RD Mortgage Loans to GNMA under the terms of its GNMA Guaranty Agreement and issue its GNMA Certificates (in the form of GNMA I or GNMA II securities) backed by the FHA, VA or RD Mortgage Loans for sale to the Trustee. D. Under direction from the Authority, pool and swap the conventional Mortgage Loans for Fannie Mae Mortgage Backed Securities under the terms of its Fannie Mae Mortgage Backed Securities ( MBS ) Pool Purchase Contract for sale to the Trustee. E. Under direction from the authority, pool Freddie Mac Mortgage Backed Certificates under the terms of its Freddie Mac Mortgage Backed Securities ( MBS ) Pool Purchase Contract for sale to the Trustee. F. Sell and deliver mortgages pursuant to cash sale or other MBS sale as directed by the Authority. G. Service the mortgage loans in accordance with sound loan servicing practices and as required by the terms and conditions of the Servicing Agreement. Identify problem loans and provide regular reports to the Authority of all delinquencies and foreclosures. The Master Servicer is responsible for all foreclosure and REO activities. H. Assist the Authority in establishing the necessary procedures and guidelines to facilitate efficient operation of the Program(s). I. Review all documents needed to determine compliance with the secondary market and examine all loans for compliance with program guidelines as established by the Authority and applicable Federal and State law. Master Servicer RFP September 2013 Page 8

9 J. Provide lender training and technical assistance for participating lenders and prepare program guidelines and informational materials. K. Supervise participating lenders and report in writing to the Authority any events or transactions relating to participating lenders which may adversely affect the Authority or which are inappropriate and unprofessional. L. Provide access to data for generation of monthly/quarterly reports to monitor loan originations and other pertinent mortgage data. Provide monthly reports for prepayments (payoffs), calculation of Servicing Release Premium (SRP), schedules of pooled mortgages and any additional reporting information that may be required in a format and time frame prescribed by the Authority. M. Process borrowers requests for assumption of loan and other special requests by the borrower as it is allowed by the Program Guidelines and applicable Federal and State laws. N. Perform all other duties as set forth in the Servicing Agreement. 3.2 TERMS AND LENGTH OF THE SERVICING AGREEMENT All aspects of this arrangement shall be governed by the Servicing Agreement in a form or forms acceptable to both parties. The Servicing Agreement shall specify performance standards for the Servicer and remedies for nonperformance which shall include the Authority s ability to terminate the agreement for cause. The Authority intends to award a one (1) year contract beginning on or about January 1, 2014, and ending on December 31, 2014, with up to four (4) additional one (1) year extensions at the sole discretion of the Authority. The Authority shall reserve the right to terminate the Servicer for cause. The Authority shall also reserve the right to replace or supplement the Servicer as to new originations at any time at the discretion of the Authority. The Authority will include the contract terms and conditions in the award letter sent to the winning Respondent or Respondents. The resulting contract will consist of the following: the terms and conditions of this RFP, the offer contained in the Respondent s proposal, and other terms necessary for completing the services outlined in this RFP. The Authority may negotiate compensation of the selected Respondent and may renegotiate such compensation if conditions warrant. The final Servicing Agreement shall contain minimum performance standards for the Servicer and remedies for nonperformance which will include the Authority s ability to terminate the Servicing Agreement for cause. Master Servicer RFP September 2013 Page 9

10 4.0 PROPOSAL SUBMISSION REQUIREMENTS 4.1 SUBMISSION DEADLINE The Issuing Officer must receive one original paper version and one electronic version of the bid proposal via at the addresses set forth in section 2.1 by 1:00 p.m. CDT, October 18, This is a mandatory requirement and will not be waived by the Authority. It is the Respondent s responsibility to ensure that the bid proposal is received prior to the deadline. Respondent must furnish all information necessary to evaluate the bid proposal at that time. 4.2 CONTENT OF BID PROPOSAL The following documents and responses shall be included in the bid proposal in the order given below. Each item submitted with the bid proposal shall be identified by its corresponding number in this RFP. 1. Transmittal Letter a. Include name, address and telephone number of the individual authorized to respond to the Authority about the confidential nature of the information. b. Include full name of Respondent firm and the parent company, if any. c. Signed by an individual authorized to legally bind the Respondent. d. Include statement from Respondent certifying that the contents of the bid proposal are true and accurate. e. Include any request for confidential treatment of information along with the specific statutory basis for the request and an explanation why disclosure of the information is not in the best interest of the public. f. Statement agreeing that the bid proposal is predicated upon the acceptance of all terms and conditions stated in the RFP. If the Respondent objects to any term or condition, the Respondent must specifically refer to the RFP page and section and state its objection. Objections or responses that materially alter the RFP may be deemed non-responsive and disqualify the Respondent. g. Statement agreeing that the availability of the services offered and that all bid proposal terms, including price, will remain firm a minimum of 90 days following the deadline for submitting proposals. 2. General Information a. Include Respondent s mailing address, electronic mail address, fax number, and telephone number including all d/b/a s, assumed names, or other operating names of the Respondent. Master Servicer RFP September 2013 Page 10

11 b. Include name, address and telephone number for the contact person in your firm authorized to negotiate agreement terms and render binding decisions on contract matters. c. Include addresses and telephone numbers of the major offices and other facilities that relate to the Respondent s performance under the terms of this RFP. d. List State of Iowa office address and phone number and relationship to the Servicer s division of the organization (if any). e. The Respondent shall sign and submit with the bid proposal the document included as Attachment #1 in which the Respondent shall certify that it developed the bid proposal independently. The Respondent shall also certify that no relationship exists or will exist during the contract period between the Respondent and the Authority that interferes with fair competition or is a conflict of interest. The Authority reserves the right to reject a bid proposal or cancel the award if, in its discretion, any relationship exists that could interfere with fair competition or conflict with the interests of the Authority. f. The Respondent shall sign and submit with the bid proposal the document included as Attachment #2 in which the Respondent authorizes the release of information to the Authority. 3. Experience & Qualifications a. Describe the level of technical experience in providing the types of services sought by the RFP. Include the number of years in business and the number of years performing the types of services offered by Respondent. b. Provide a list of state and local housing finance agencies for which Respondent is currently under contact as Master Servicer. c. Provide evidence of qualifications and experience in GNMA/Fannie Mae/Freddie Mac securitized programs, FHA, VA, and RHS mortgages, and single-family programs funded with tax-exempt bonds or alternatively funded programs. Include qualified Fannie Mae/Freddie Mac and GNMA seller-servicer numbers. d. Provide data regarding the number of loans and dollar amount of single-family loans purchased by Respondent in calendar year 2012 and year to date for 2013 through August 31, e. Provide data regarding the number of loans and dollar amount of loans serviced by Respondent as of December 31, 2012 and year to date for 2013 through August 31, f. Identify the agency or agencies that regulate your organization and provide ratings, score card or report card from agencies that regulate your organization or are relevant to mortgage services you provide. g. Provide documentation showing that the Respondent meets the Minimum Qualifications set forth in Article 5.2. Master Servicer RFP September 2013 Page 11

12 h. Provide a copy of Respondent s most recent Service Auditors Report (SAS70). 4. References a. Provide names, addresses, telephone numbers and addresses of three clients the Authority can contact concerning Respondent s performance as Master Servicer within the last 5 years for single-family mortgage revenue bond programs or other alternatively funded programs including TBA programs. List references for which you have acted as Master Servicer, currently or in the past, including name, address, telephone number and contact person including address. 5. Organizational Capacity a. Provide names and brief resumes of all key personnel who will be assigned to this project and the primary responsibilities assigned to each person. Indicate the level of knowledge each individual has regarding the mortgage market, lending practices, and foreclosure laws and the number of years of experience. b. Describe the location and facilities where loan servicing and customer service tasks will be carried out. c. Describe the information technology to be used for loan acquisition and loan servicing, including whether it was developed internally or whether written by a third party. If by a vendor, include the name of the software, vendor and vendor contact information. The Authority uses loan reservation tracking and accounting software developed by Emphasys for state housing finance agencies. Include a description of any integration capability Respondent has specifically developed or used in conjunction with Emphasys products. 6. Work Plan & Approach a. Describe how each of the services listed in Article 3.1 will be performed. b. Describe and discuss any special procedures or requirements which might be imposed on lenders to facilitate loan deliveries and purchases. c. Describe how the Respondent, as Master Servicer, might enhance the Authority s ability to reach persons with disabilities, and ethnic and racial minority and/or rural (non-metro) markets in Iowa, and how the Respondent can assist in the marketing of the Authority s single family financing programs. d. Describe your policy on cross-selling and use of borrower names and addresses as it would apply to the services contemplated by this RFP. e. Describe any early intervention procedures used by Respondent to keep mortgage loans current and to prevent default. f. Provide the following information as of the end of the periods noted, relating to all single family mortgage loans being serviced by you for your own account or for the account of others: Master Servicer RFP September 2013 Page 12

13 12/31/10 12/31/11 12/31/12 8/31/13 % of Loans days delinquent % % % % % of Loans days delinquent % % % % % of loans more than 90 days delinquent (except for loans in process of foreclosure) % % % % % of loans in process of foreclosure % % % % g. List of any and all criteria to be met as a condition of the Respondent entering into agreements with a participating lender. h. Provide copy of proposed form of Mortgage Origination Agreement (or agreements) specifying the terms and conditions Respondent intends to require of participating lenders and the Authority in order to accept mortgage loans for purchase into the Authority s program. i. Provide a list of all documentation and samples of all forms that Respondent intends to require of Lenders seeking approval to participate in the Authority s program. j. Describe how Respondent currently provides information to housing partners, such as investors and other HFA clients utilizing technology. k. Submit a proposed form of a Servicing Agreement. 7. Cost Proposal a. Provide a proposed itemized cost schedule for the services described in this RFP. Provide bid prices for the servicing levels listed on Attachment #3 and add any information necessary to reflect all fees to be charged in order to carry out the scope of work outlined in this RFP. b. Include a cost schedule for performing Program Compliance services to ensure compliance with Authority and Federal guidelines for the Program. The Authority currently performs these services in-house; however, and these services shall be considered as possible alternate services to be procured at the sole discretion of the Authority as part of this Servicing Agreement. c. State, describe, and estimate any other fees your firm will require to act as Master Servicer. Please include funding fees or tax service fees charged upon loan purchase to participating mortgage lenders. 8. Other Information Master Servicer RFP September 2013 Page 13

14 a. Disclose any lobbying efforts conducted on behalf of your organization with regard to any elected or appointed official of the State, or any contribution to any elected official of the State since January b. Include any additional information that will be helpful in evaluating your proposal. 5.0 EVALUATION OF BID PROPOSALS 5.1 INTRODUCTION This section describes the evaluation process that will be used to determine which bid proposal provides the greatest benefits to the Authority. Bid proposals will first be examined to determine whether the minimum qualifications outlined in Article 5.2 are met. Only proposals deemed to have demonstrated that the minimum qualifications are met will be subject to further evaluation. The evaluation process is designed to award the contract not necessarily to the Respondent of least cost, but rather to the Respondent with the best combination of attributes to perform the required services. 5.2 MINIMUM QUALIFICATIONS The successful respondent must meet the following: 1. Be a financial institution engaged in the business of servicing residential mortgage loans, qualified to do business in the State of Iowa and acceptable to, and meet any review criteria of, rating agencies rating the Authority bonds. 2. Be (i) an FHA-approved, VA-approved and RD-approved mortgagee, a GNMA-approved Seller and Servicer of GNMA Certificates for FHA-insured, VA-guaranteed and RDguaranteed mortgages, and (ii) a FANNIE MAE and FREDDIE MAC approved Seller- Servicer eligible to pool and service FANNIE MAE and FREDDIE MAC Mortgage Backed Securities for conventional Mortgage Loans, and meet all requirements of applicable laws so as to be eligible to originate, purchase, hold and service FHA-insured, VAguaranteed and RD-guaranteed mortgages and conventional Mortgage Loans. 3. Demonstrate capacity to warehouse mortgage loans as necessary until such loans are pooled to form MBS purchased by the bond Trustee or sold on a cash basis as directed by the Authority. 4. Be an Equal Opportunity Employer as defined by applicable state and federal regulations; must comply fully with all government regulations regarding nondiscriminatory employment practices; and must be in compliance with the provisions of the Americans with Disabilities Act. Master Servicer RFP September 2013 Page 14

15 5. Have a CRA rating of satisfactory or better, if applicable. 6. Demonstrate capacity to service loans statewide. 7. Maintain an office located in the United States for taking phone calls from customers, including borrowers and participating lenders with questions on the Authority s Program. 8. Demonstrate the ability to use on-line lender loan reservations systems. 9. Maintain errors and omission insurance, fidelity bonds and lender/servicer performance bonds that meet the requirements of the Authority and applicable rating agencies. 10. Demonstrate capacity to develop and implement investor reporting via electronic data interchange in a format acceptable to the Authority. 11. Demonstrate capacity to buy back the Mortgage Loans which are not in compliance with the Program and Mortgage Loans for which any applicable insurance coverage is denied and retain such files and records for such periods of time designated by the Authority. 5.3 EVALUATION COMMITTEE The Authority intends to conduct a comprehensive, fair and impartial evaluation of bid proposals received in response to this RFP. The Authority will use an Evaluation Committee to review and evaluate the proposals. The Evaluation Committee will make a recommendation to the Executive Director. The Executive Director will select the Servicer. The Executive Director is not bound by the Evaluation Committee s recommendation. 5.4 EVALUATION CRITERIA The Evaluation Committee will evaluate all proposals and make an award recommendation to the Executive Director using the following criteria, which are listed in no particular order. A. Experience and Qualifications (35%) The Respondent s experience in the servicing of mortgages for purposes similar to those outlined in this RFP and the experience of assigned staff. B. Expected Service and Ability to Meet Needs of the Authority (35%) Demonstrated knowledge of the Authority s objectives; the manner in which the Respondent s proposal has addressed the required items included in this RFP, Master Servicer RFP September 2013 Page 15

16 including the detail and clarity of the responses; demonstrated pooling and servicing abilities. C. Fees (30%) The Respondent s fee proposal will be evaluated in relation to other fee proposals received. The winning proposal may not be the proposal with the lowest cost. 5.5 RECOMMENDATION OF THE EVALUATION COMMITTEE The final recommendation(s) of the Evaluation Committee shall be presented to the Executive Director for consideration. This recommendation may include, but is not limited to, the name of one or more Respondents recommended for selection or a recommendation that no Respondent be selected. Master Servicer RFP September 2013 Page 16

17 Attachment #1 Certification of Independence and No Conflict of Interest Date Deborah Haugh Iowa Finance Authority 2015 Grand Ave. Des Moines, Iowa RE: Request for Proposal for Servicer Dear Ms. Haugh: By submitting a proposal in response to the Request for Proposals for Servicer for the Iowa Finance Authority (RFP), the undersigned certifies the following: 1. The proposal has been developed independently, without consultation, communication or agreement with any employee or consultant to the Authority who has worked on the development of this RFP, or with any person serving as a member of the evaluation committee. 2. The proposal has been developed independently, without consultation, communication or agreement with any other vendor or parties for the purpose of restricting competition. 3. Unless otherwise required by law, the information found in the proposal has not been knowingly disclosed and will not be knowingly disclosed prior to the award of the contract, directly or indirectly, to any other vendor. 4. No attempt has been made or will be made by (Name of Respondent) to induce any other Respondent to submit or not to submit a proposal for the purpose restricting competition. 5. No relationship exists or will exist during the contract period between (Name of Respondent) and the Authority that interferes with fair competition or is a conflict of interest. Sincerely, Signature of Authorized Representative Printed Name Title Master Servicer RFP September 2013 Page 17

18 Attachment #2 Authorization for the Release of Information Date Deborah Haugh Iowa Finance Authority 2015 Grand Ave. Des Moines, Iowa RE: Request for Proposal for Master Servicer Dear Ms. Haugh: [name of Respondent], Respondent, hereby authorizes the Iowa Finance Authority ("Authority") to obtain information regarding its performance on other contracts, agreements or other business arrangements, its business reputation, and any other matter pertinent to evaluation and the selection of a successful Respondent in response to Request for Proposal for Servicer. The Respondent acknowledges that it may not agree with the information and opinions given by such person or entity in response to a reference request. The Respondent acknowledges that the information and opinions given by such person or entity may hurt its chances to receive contract awards from the Authority or may otherwise hurt its reputation or operations. The Respondent is willing to take that risk. The Respondent hereby releases, acquits and forever discharges the State of Iowa, the Authority, their officers, directors, employees and agents from any and all liability whatsoever, including all claims, demands and causes of action of every nature and kind affecting the undersigned that it may have or ever claim to have relating to information, data, opinions, and references obtained by the Authority in the evaluation and selection of a successful Respondent in response to the Request for Proposal. The Respondent authorizes representatives of the Authority to contact any and all of the persons, entities, and references which are, directly or indirectly, listed, submitted, or referenced in the undersigned's proposal submitted in response to the Request for Proposal. The Respondent further authorizes any and all persons, entities to provide information, data, and opinions with regard to the undersigned's performance under any contract, agreement, or other business arrangement, the undersigned's ability to perform, the undersigned s business reputation, and any other matter pertinent to the evaluation of the undersigned. The undersigned hereby releases, acquits and forever discharges any such person or entity and their officers, directors, employees and agents from any and all liability whatsoever, including all claims, demands and causes of action of every nature and kind affecting the undersigned that it may have or ever claim to have relating to information, data, opinions, and references supplied to the Authority in the evaluation and selection of a successful vendor in response to the Request for Proposal. A photocopy or facsimile of this signed Authorization is as valid as an original. Sincerely, Signature of Authorized Representative Printed Name Title Master Servicer RFP September 2013 Page 18

19 Attachment #3 Master Servicer RFP Cost Proposal TBA Pricing Matrix MRB Pricing Matrix MBS Type Guarantor Guaranty Fee Servicing Fee Bid Price MBS Type Guarantor Guaranty Fee Servicing Fee Bid Price GNMA II FHA 0.06% 0.19% bps GNMA I or II FHA 0.06% 0.44% bps GNMA II RD 0.06% 0.19% bps GNMA I or II RD 0.06% 0.44% bps GNMA II VA 0.06% 0.19% bps GNMA I or II VA 0.06% 0.44% bps GNMA II FHA 0.06% 0.315% bps FNMA 0.475% 0.25% bps GNMA II RD 0.06% 0.315% bps FNMA 0.475% 0.35% bps GNMA II VA 0.06% 0.315% bps FHLMC RD 0.475% 0.25% bps GNMA I or II FHA 0.06% 0.44% bps FHLMC VA 0.475% 0.35% bps GNMA I or II RD 0.06% 0.44% bps GNMA I or II VA 0.06% 0.44% bps GNMA II FHA 0.06% 0.565% bps GNMA II RD 0.06% 0.565% bps GNMA II VA 0.06% 0.565% bps GNMA II FHA 0.06% 0.69% bps GNMA II RD 0.06% 0.69% bps GNMA II VA 0.06% 0.69% bps FNMA 0.475% 0.25% bps FNMA 0.475% 0.35% bps FHLMC RD 0.475% 0.25% bps FHLMC VA 0.475% 0.35% bps Please identify additional borrower qualifications such as minimum FICO scores and or maxium debt to income (DTI) ratios. Please identify any additional fees you will charge the originating lender at the time of loan purchase. Include in your cost proposal any assumptions and or variables that may affect your quote. Please identify additional borrower qualifications such as minimum FICO scores and or maxium debt to income (DTI) ratios. Please identify any additional fees you will charge the originating lender at the time of loan purchase. Include in your cost proposal any assumptions and or variables that may affect your quote. Page 1