RFP Sample Questions

Transcription

1 RFP Sample Questions I. Overview of Lender a. About branches, product, business channels b. Business Objective c. Existing Environment i. Current Processes (i.e. workflow, processing) ii. Current POS/LOS system (s) iii. Current Servicing System iv. Current Processes d. Current Critical Problems e. Scope of this RFP f. Evaluation Criteria g. Delivery Expectations i. Process and Timetable II. Vendor Company information a. Transmittal Letter and Executive Summary i. Include in a transmittal letter the following information: 1. Name of Respondent representative (each Respondent must appoint an individual to represent the Respondent for all facets of this acquisition) 2. Title 3. Name of company 4. Address 5. Telephone number 6. address 7. Statement of intent to propose 8. Signature of authorized officer of the company 9. The transmittal letter must be on the Respondent's letterhead and signed by a person authorized to make obligations committing the Respondent to the proposal b. Include in an Executive Summary the following information: i. A brief summary of the Respondent's proposal ii. A high-level overview of your product and the distinguishing characteristics of your proposal iii. A brief description of the services you provide and specify which your core competencies are iv. Any additional information the supplier deems useful for the Lender s evaluation of your qualifications c. Describe your commitment to innovation. Specifically, how will you work with Lender to introduce new technologies or enhance our processes and optimize our total cost of ownership? d. Relevant and Past Experience i. Provide detailed examples of experience gained within the past five years that demonstrate the team s ability to manage and successfully perform tasks and substantially demonstrates relevancy to the requirements of this RFP ii. Details around your experience with implementing a system of similar complexity in an environment similar to the Client s e. Do you have an annual user s group meeting? III. Technical Overview / Requirements a. Architecture i. Supported operating systems ii. Supported data bases iii. Are any middleware products required or recommended iv. Development tools/languages

2 v. Normal ongoing support requirements, including support from both the business and technical community. vi. The solution must provide for changes to user interfaces, data tables and attributes, rules and workflow so that the client can keep up with new releases vii. The Vendor should provide an overview of the modules in their system and how they interrelate viii. The Vendor should describe the following features of its architecture; 1. Level of Distribution/ Centralization of its standard architecture 2. Adherence to open architecture standards 3. Scalability 4. Messaging ix. The Vendor should describe the standard web browsers that can be used with the product x. Describe your standard workflow engine 1. Is it configurable by a business user/admin xi. The Vendor should describe its ability to support imaged documents and the ability to work within a Lender s workflow as opposed to simply archiving of documents xii. The vendor should provide information on the customization process xiii. The Vendor should identify its standard operating systems and server configuration (for 500 users and 1,000 users) xiv. The Vendor should identify its standard DBMS and provide any information on limitations or constraints based on the choice xv. The Vendor should identify its standard programming tools and languages and provide any information on limitations or constraints based on the choice xvi. The Vendor should describe the security features around updates and access to the application code and data bases xvii. The Vendor should describe how the application normally fits within the firewalls of its users xviii. The Vendor should describe standard user security protocols xix. The Vendor should describe how its application supports separation of duties xx. The Vendor should describe its standard archiving technique xxi. The Vendor should describe its normal process for providing updates and enhancements. This should include normal frequencies of providing enhancements, as well as how often a major upgrade is released b. Performance and Scalability i. Scalability, including the largest currently installed base; the solution must support growth of user community without degrading performance c. Integration Capabilities i. Indicate and detail any capability your system has with interfacing standard external information providers commonly used in the Loan Origination process (credit bureaus, appraisers, fraud detection, brokers, etc.) 1. The solution will provide the ability to retrieve electronic credit reports from the Lender s approved vendors 2. The solution will capture the credit report data into the data store. 3. The solution will identify which loan submissions require flood certifications and set stipulation 4. If a flood certification is required, then the solution will generate a service order to obtain the flood certification d. Software and Hardware Requirements i. Overall System Requirements 1. Business Environment Features Updates to any data element can be controlled by user security privilege. A complete transaction log can be kept for each data element change.

3 The solution will support security control regarding when each data element is locked down from any further updates. System security and administration of security ii. Features and Functions 1. General System Is there a notepad feature to capture comments? Audit Trails provided on updateable fields Ability to maintain product and rate information in an interactive and matrix like manner Ability to communicate with customers, internal users, and external parties through a variety of media, including at least: i. Print ii. iii. Fax iv. Secure Web Communication distribution can be logically and administratively defined System supports industry standard EDI communications (appraisal, etc.) Ability to maintain information on authority levels Ability to provide automated interfaces to third party fraud detection services: i. Text based, visual based ii. Income, property fraud iii. Predatory lending Ability to provide automated interface to SDN/OFAC lists The system should support a field sensitive on-line help facility System should integrate key credit policy explanations/ access credit policy manuals/maintain readily searchable credit policy manuals System employs a robust search feature (borrower name, broker name, SSN, app #) System is able to: i. Require data entry in specific fields ii. Validate data entry at a field level iii. Perform common fraud checks (i.e. invalid SSN, etc.) To the degree that it is practical, the system should provide for automated workflows to support the normal process flow of a loan 2. Application Ability to automatically upload standard industry mortgage application documents into the system System conforms to FNMA application format standards (information, print of form, etc.); captures all FNMA standard application data System is able to generate loan application numbers (random, based on specific factors (i.e. broker, office codes, etc.) Ability to allow for one data entry to cover all entries for piggyback loans Ability to structure potential loan packages interactively, based on the input from the application and stored product/ rate information in the system Ability to support multiple borrowers on one loan Ability to easily change the primary borrower 3. Pre-qualification Ability to prequalify a borrower: i. Customer or broker enters information from off-site location ii. Determines most appropriate product/deal for customer and sends back multiple scenarios

4 iii. Creates pre-qualification certification document(s) iv. Display side by side comparison v. View disqualified loan programs vi. Retain eligible loan programs System can determine appropriate counter-offers for a customer whose information does not qualify them for their requested product/deal 4. Product Set System supports industry standard loan products: i. fixed rate ii. standard conventional iii. FHA including 203K, VA iv. Adjustable rate v. graduated payment vi. standard amortizing vii. conforming, non-conforming viii. sub-prime ix. jumbo x. streamlined refinances xi. linked first/second mortgages xii. balloon loans System supports less standard products: i. reverse mortgages ii. customer selected payment (allowing monthly changes) iii. extended or unusual terms (40+ years) iv. piggyback mortgages (joint first and second) v. single loans with multiple collaterals vi. multiple borrowers 5. Pricing The solution will provide ability for the business team to create and maintain the pricing and rate tables Ability to maintain pricing tables from a centralized location Ability to distribute pricing Ability to perform pricing adjustments base on user defined criteria Ability to support and provide reporting on pricing exceptions Ability to trigger loan pricing validations and changes throughout the originations process based on a variety of triggers: i. Pricing at pre-qualification ii. Pricing based on # days since prior pricing iii. Changes to loan based variables (LTV, Loan Amount, product type, etc.) iv. Pricing changes may be done to the index, margin or other variables Ability to maintain an audit trail of pricing changes, including adjustments, at a loan level 6. Loan Underwriting System retains credit bureau information in system and allows for manual adjusting Ability to provide for both external credit bureau scores as well as internal credit scoring System interfaces with appraisal registries and support companies System is able to validate appraisers to ensure that they are licensed (validate against external registry) Ability to:

5 i. maintain appraisal review related comments ii. Ability to queue loans based on appraisal status (to be reviewed, reviewed and suspended awaiting information) iii. Recalculate loan to value based on results of appraisal review and update of pertinent information iv. Identify appraisals where recalculation has changed, appraised value revised, appraisal suspended, etc. System maintains key appraisal information on-line Ability to report on appraisers based on: i. # of suspends ii. # of incorrect valuations iii. total number of appraisals received iv. turn around time System provides automated underwriting capability i. incorporates corporate credit policy ii. system generates conditions and stipulations based on state, product type, loan amount and other defined variables iii. System is able to make determination based on company set tolerances iv. System enables override of automated decisions System is able to support various levels of underwriting based on product types and loan programs (i.e. streamlined underwriting programs, criteria specific requirements such as 2 appraisals for loans over specific $ amount, etc.) System is able to assign loan score based on a variety of criteria including trade lines, debt to income ratio, late pays, time on job, bankruptcy/ foreclosure history and FICO score Ability to support waiving of fees Ability to report statistics on waived fees System automatically generates: i. customer letters for loan denials ii. conditional approvals iii. initial disclosures (GFE, estimated TIL, authorization to release information, title insurance and attorney election forms, etc. based on product and state requirements System is able to support reapproval rules: i. identify when a reapproval is required ii. automatically submit or queue loan for re-approval System performs all standard underwriting calculations: i. LTV ii. debt ratios iii. income ratios iv. other Ability to recalculate loan values and fees based on the LTV. Ability to drive standard underwriting calculations based on a variety of factors including state, product, LTV, loan amount, investor-specific requirements. Ability to override standard calculations for such needs. 7. Loan Processing Ability to track the status of stipulations applied to the loan System is able to support redisclosure rules: i. track the status of re-disclosures

6 ii. identify when a redisclosure must be generated iii. automatically generate a re-disclosure System has provisions to require escrows for taxes and insurances, to calculate and disclose escrow payments collected at closing and to interface with servicing systems escrow functionality System should enable the discrete entry of a wide variety of fees; allow for the establishment of new fees; and maintain standard characteristics to each fee type Ability to distinguish between prepaid and other fees on a state by state basis for disclosure purposes System should maintain an audit trail of when new fees are added or fees are updated System should allow the entry of comments with both a robust list of table driven comments as well as free form entry 8. Loan Closing System is able to perform pre-closing validations to ensure that appropriate documents are produced for signing; that all required process steps have been completed; etc. The solution must track all fees due to all parties to the transaction. The solution will include full document preparation services Is there a notepad feature to capture comments? System supports e-signatures System supports all rescission calculations (date/period); associated notifications and notices, System supports payoffs of existing debt (debt consolidation, straight payoffs, etc.) including payoff/payment letters Are all fields available to be audited? What kind of audit reports can be created? Does the system provide the capability to create custom fields to capture specific customer info e.g., driver s license number)? Does the system provide the capability to create custom forms? If so, can a business user create the forms? The solution must support the management of multiple warehouses. The solution must provide for the transfer of funding transactions to the General Ledger system, including the GL account number as used in our systems. The solution must support wire transfers 9. Loan Documentation System is able to interface with standard third party document providers and/or document management tools Ability to make changes that affect multiple documents in a table driven manner as opposed to each individual document Ability to re-create prior versions of documents Automated production of loan packages, systematically identifying the loan documents required for a specific deal based on: i. state requirements, ii. product requirements iii. deal size iv. other 10. Loan Funding Ability to support odd days interest (both positive and negative)

7 Ability to provide automated rescission procedures Ability to support standard funding mechanisms (wires and checks) Ability to provide flexible entry and calculation of miscellaneous disbursements 11. Secondary Marketing For investors, system should retain loan characteristics such that loans can be identified and flagged as appropriate to specific investors Ability to have a loan status as on deck for an investor sale Ability to maintain a post-closing checklist. The solution will provide for the selection of candidate loans for an investor pool based on investor guidelines 12. Pipeline Management System provides pipeline management capability: i. Provides L/O with information as to loan status (step in cycle); information received or required ii. Ability to flag changes to key factors such as loan type, term, LTV iii. Tracks target closing dates iv. Provides a loan timeline of significant cycle steps and time to complete each step by L/O, processor, underwriter, etc. v. Provides MIS on cycle times, service levels, office production forecasts 13. Workflow Ability to maintain Lender defined workflow within system including: i. The ability to queue loans for review throughout the process (i.e. appraisal, underwriting, QC queues, etc.) ii. Ability to configure data on screens and screen flows in order to accommodate efficient workflow iii. Phases and sub-phases of processes iv. Support for both department and individual user queues v. Manager views of loans in user queues with filtering and reassignment capabilities vi. Define loan tasks for each phase of processing 1. Task can be assigned and/or omitted by system rules engine 2. System can track date completed 3. Task can be required to advance loan progress 14. Workflow System minimizes the need for duplicate data entry by pre-filling data from other sources or based on specific characteristics wherever possible System is able to identify and flag inconsistencies/conflicts in information and missing information Ability to trigger workflow steps based on business processing rules (i.e. specific customer/broker correspondences, requests for VOE, VOM, etc. Ability to maintain multiple workflows based on product, state, channel and other variables The solution will provide a user interface that shows the loans to be worked on and the tasks that must be completed by the individual user for that loan. Multiple tasks on a single loan can be completed concurrently by multiple users The solution will allow the team or floor manager to review the work assigned to individuals or teams and reallocate work to another group or individual. The re-assignment is performed on a single loan or a group of loans or tasks

8 The solution will be able to report on the productivity of each event or task by worker, by team, by region or enterprise. 15. Rules Engine (BRMS) Ability for business administrator to create business rules via a rule builder tool versus writing code Access should be to all data within system, both user-defined and vendor provided Vendor to provide list of standard rule triggers that can launch the rules engine Describe how lender can change or augment this list Vendor to provide list of standard actions that rules engine can trigger to happen Describe how lender can change or augment this list Triggers and actions must be chained to perform a continuous, logically driven action Triggers and events must be easily managed and changed by lender 16. Document Imaging Can imaging be integrated into workflow? System has the ability to interface with a variety of document imaging/archival solutions including Doculogic. System is able to support receipt/translation of key documents such as VOE, VOM, W2s, appraisals, etc. System maintains an electronic loan file 17. Quality Control Provide the ability to have a number of windows specifically tailored for quality control purposes, that contain the information pertinent to the QC function The ability to provide reports that meet the analytical and management reporting requirements of the QC Function Provide the ability to have a dynamic post closing checklist, so that changes in rules can be effectively used in document review Ability to flag loans for re-underwriting as part of the QC process based on a random sampling or on specific loan characteristics (such as loans from new brokers, loans in High Risk Metro areas, etc.) 18. Accounting The ability to support a funds reversal process The ability to support Miscellaneous Disbursements 19. Compliance Ability to provide calculation rules at least at a state level Ability to provide user overrides of specific rules in specific locales to address company or investor specific requirements Ability to provide for many types of user defined fees Ability to apply standard characteristics to these fees Ability to systematically determine if a broker is eligible to submit an application or to close a loan 20. Reporting Ability to validate loan data input throughout the originations process to ensure valid HMDA reporting information and minimize post closing data corrections for HMDA purposes Ability to provide more robust pipeline reporting The solution must support high cost loans detection and reporting

9 Is it easy to create custom reports? IV. Support Structure a. Technical / Business Support Services i. Describe the software maintenance services proposed for the licensed software and customdeveloped software. The proposal should at minimum, address the following: 1. Upgrades, enhancements, patches, fixes, corrections and new versions that are published as general release during the first year after final acceptance 2. telephone technical support 3. Internet support 4. New systems documentation or manuals for as upgrades and new versions are published as general release. 5. Minor or major patches or upgrades to fix bugs or problems. b. Technical Support Services Provided i. Assistance with systems performance monitoring and tuning for optimal performance ii. free telephone technical support between 8:00 am - 5:00 p.m. EST, Monday through Friday (excluding holidays) iii. Internet support iv. Assistance with performance of all technical functions that is normally associated with maintenance and operation of a system v. Troubleshooting and answering questions for the technical staff operating the System vi. Other support tasks c. Telephone Support i. State your company s policy relative to the types and amount of telephone support that will be available d. Training i. Vendor will provide training manuals in an electronic format so that Lenders can alter to their specific needs ii. Vendor will provide train the trainer services to train Lender s system administrators and end users during initial engagement iii. The vendor will provide on-going project and operational support with a dedicated client management team V. Implementation a. Implementation Approach i. A sample implementation plan that identifies the preferred approach of the vendor. The sample will identify the vendor and Lender teams required, and the deliverables produced by the implementation team. The approach should include the work breakdown structure as well.