Home Equity Conversion Mortgage (HECM) Accounting Business System

FHA’s current Home Equity Conversion Mortgage (HECM) insurance program uses the Home Equity Reverse Mortgage Information Technology (HERMIT) system, provided by Reverse Market Insight, Inc. FHA is considering dividing this large contract into two separate contracts.

Single Family HECM Services (NOF-25-01): FHA Single Family requires Software as a Service (SaaS) for management of its HECM endorsed and assigned portfolio servicing activities, along with the functions for loan setup and assignment claim (claim type 22) processing. These services will include enhanced features for lenders and HUD staff, including a borrower portal and self-service reports.

Accounting Services (NOF-25-002): FHA requires Software as a Service (SaaS) for its traditional HECM accounting activities, including MIP calculation and collection, notes disbursement, plus the processing of claim types 21, 23, and 24, and claims calculation and disbursement functions. FHA is looking for technical application services that meet Federal Risk and Authorization Management Program (FedRAMP) requirements at the Moderate impact level and other Federal Government cybersecurity and privacy requirements.

HUD received an unanticipated number of questions in response to its sources sought notice and finds it inappropriate to respond at this time. As market research progresses, HUD expects to provide additional information. Respondents are invited to submit capability statements via email to timothy.a.danowski@hud.gov, with a cc to dwayne.e.gist@hud.gov, no later than Friday, December 6, 2024, 2:00 PM Eastern Standard Time for consideration.