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Request For

RFP - Loan Origination System

RFP - Loan Origination System

Kentucky Housing Corporation (KHC) is in need of a Loan Origination System. KHC will enter into competitive negotiations with any Bidder that is deemed a Responsible and Responsive Bidder to this RFP.

KHC is the state housing finance agency and a political subdivision of the Commonwealth of Kentucky. Created by the General Assembly in 1972, KHC’s mission is to invest in quality housing solutions for families and communities across Kentucky.


KHC’s Single-Family Program currently handles approximately 4000 loans per year and needs a sustainable loan origination system to simplify and streamline the process. The purpose of this request for proposal (RFP) is to allow KHC to contract with a Vendor that can provide a hosted, comprehensive loan origination solution that has the capability to manage and monitor all loans through various business channels including reservations, pipeline management with commitments to GNMA or FANNIE MAE, underwriting, closing, postclosing, etc. KHC maintains both wholesale and retail business functions and needs a Loan Origination System (“LOS”) that can support both.

The service must offer complete transactional functionality, report generation and automated aging to ensure quality audit trails. The software and services shall be known as the “loan origination system” (LOS) and shall include at least the capabilities and specifications outlined in this RFP. KHC requires all bidders to provide a response to the RFP that follows the outline format of this RFP. A Word version of this RFP will be made available upon request. The details below and responses thereto may be used to define the scope of work for any contract resulting from this RFP.

Services Requested

Single-Family Programs creates sustainable homeownership solutions for Kentuckians through KHC’s network of partnerships across the state. KHC home loans are made to lowand moderate-income households wanting to purchase or refinance a single-family dwelling. First and second mortgage loans are available to assist home buyers with down payments to buy a home, in addition to counseling and education opportunities.

Please provide a yes or no response in your RFP stating whether your LOS presently has the following required features:

  1. Lender Portal
    • Ability to integrate with VirPack Document Management and Delivery System (DMDS). (proof required)
    • Ability to validate and check for duplicate social security numbers in the overall pipeline
    • Ability to check for program parameters and ensure eligibility
    • Ability to provide a Loan Estimate
    • Ability to support endless flexibility with doc prep and closing packages in addition to allowing customizable KHC forms
    • Ability to support underwriting process
  2. System Adminstration
    • Vendor hosted secure Web-Based System
    • Delegated Account Administration
    • Ability to support various levels of security based on lending relationship and defined user roles
    • Ability to support various mortgage products and requirements
    • Ability to track rate lock period and extensions
    • Ability to provide data interface to support KHC's loan servicing and paperless systems as well as online rolodex
    • Ability to provide a test environment that mimics the production environment
    • Ability to customize documents
    • Supports considerable number of system users (Internal=40; External=2000)
    • Allows Field Security
    • Ability to link first mortgage with other programs, such as down payment
    • assistance, Mortgage Credit Certificates, etc.
    • Ability to support various rate structures, including flat and tiered rates
    • Provides timely response to support needs
  3. Workflow
    • Ability to assign loan conditions, approve, deny loans
    • Ability to allow staff to enter final figures and create closing docs in KHC’s name to send to closing attorney
    • Ability to allow staff to enter final figures and create closing docs in KHC’s name to send to closing attorney
    • Ability to integrate with MERS and assign MIN Number for specific business channel
    • Ability to allow KHC staff to request funds to send to the closing and automatically flow into a Trustee report
    • Ability for KHC staff to purchase the loan in the system, which accounts for all funds to be wired to the lender – loan amount, lender comp, plus or minus any fees owed either way
    • Ability to interface with KHC’s loan servicing system (FICS)
  4. Notifications
    • Ability to provide automated file status communication to internal and external users
  5. Reporting
    • Ability to provide dynamic, real-time reporting
    • Ability to schedule reports
  6. Compliance
    • Maintains Regulatory Compliance
    • Ability to provide various compliance checks with NMLS, Early Check and HPML upon reservation lock
  7. Secondary Market Activities
    • Ability to support KHC Secondary Market Activities and allow loan-level and batch delivery capabilities to GNMA/FNMA
  8. Technical Specifications
    • Mandatory N+1 configuration to withstand equipment failures
    • Data encryption in transit
    • Mandatory data center SAS70 Type-II or SSAE 16 Type II certified?
    • How frequently do you engage in Network security assessments and Penetration tests? Can you share past 3 years SSAE16 and Network vulnerability reports?
    • Please provide details on how you conduct extensive background and substance abuse checks on all your data center employees who may have access to KHC data? Background check do not include mortgage or financial fraud

Proposals must be received by 5:00 p.m., EDT, on Monday, April 1, 2019, to be considered.
Electronic copies will be accepted and are preferred. Faxed copies will not be accepted.

For full details about the request, please review the full RFP for a Loan Origination System.


Is a vendor disqualified if they cannot provide every item listed in the required section?

Not providing everything asked for in the required section is not necessarily an automatic disqualification.  However, it may have an impact on the scoring.  The vendor should list the item not being provided and explain why it isn't being provided.

Submission of Proposals

Please direct the proposals to the attention of:

Lori Davis
Legal Services and Compliance Department
Kentucky Housing Corporation
Subject line to read: RFP Response for LOS Project