QUESTIONS ABOUT THE RFI

>06/12/2007

1.  Q:  The RFI states, "LTC reserves the right to accept, reject, or use without obligation or compensation any information submitted in response to this RFI."  Our company holds proprietary information that is relevant to our response to the RFI.  How can we ensure that our proprietary information will not be disclosed or used without permission?
 
A:  You should not include confidential proprietary/trade secret information in your response to the RFI. The primary purpose of the RFI is to identify vendors with the capability to build and maintain the database and provide the kinds of services described in the RFI.  We hope that you will be able to adequately communicate your company's capabilities without disclosing trade secret information.
 
 While the RFI does ask you to comment on the project requirements, at this stage we are more interested in identifying companies that have a demonstrated capacity to fulfill the overall project requirements than in learning the specific tools and strategies each company would use to build the database features.
 
 At the same time we do not want any promise of confidentiality to hinder us from using high-level ideas or general descriptions of business processes or structures that may be contained in responses to the RFI.  We will hold confidential all company-specific information, such as company finances, and employment and business relationships, as stated in the RFI.
 
 If, as anticipated, we issue a detailed RFP to specific companies based on their responses to the RFI,  the RFP process will include appropriate protections for responding companies' trade secret information.

2.  Q: Is there an "intent to respond" form that companies must use?
 
 A: No. Section X of the RFI is intended to provide complete instructions for responding to the RFI.
 

3.  Q: In addition to the specific questions in Section X of the RFI, may responding companies also comment on other sections of the RFI, for example, the project overview in Section V?
 
A:  We will consider relevant information provided by qualified responders, even if it is outside the scope of the specific questions in Section X. 

>06/13/2007

4. Q. How does the proposed system relate to any other similar systems or products that exist in the marketplace?
 
A: The proposed system is a new project and was not conceived as an outgrowth of any existing product or service. The proposed system will be an industry-wide utility for all lenders to use, to combat fraud with a more complete set of data than any previous or proprietary system could achieve. It is not intended to compete directly with sophisticated fraud detection engines currently offered by some technology vendors, but rather to augment them by providing additional information that a company will then have to assess.

5. Q. What type of fraud will be screened – overstatement of borrower income, understatement of borrower risk status, overstatement of property values, phony identity or social security, etc.
 
A: The exact functionality of the system has not yet been determined at a detail level. One purpose of the RFI is to gather information and input from interested parties with expertise in this area, to help develop the detailed functionality that will be required.

6. Q. How will privacy, confidentiality be handled?
 
A: Information security will be a fundamental design aspect of the system to ensure data security and confidentiality for all parties associated with the data it will store. The exact functionality in this regard has yet to be specified.

7. Q. Will system pick up internal fraud by overzealous lending agents who doctor information to meet lending goals?
 
A: The exact functionality of the system has not yet been determined at a detail level. One purpose of the RFI is to gather information and input from interested parties with expertise in this area, to help develop the detailed functionality that will be required.

8. Q. Will the system relieve lenders from setting up their own risk management programs or obtaining risk management software/services from tech vendors?
 
A: The proposed system will be an industry-wide utility for all lenders to use, to combat fraud with a more complete set of data than any previous or proprietary system could achieve. It is not intended to compete directly with sophisticated fraud detection engines currently offered by some technology vendors, but rather to augment them by providing additional information that a company will then have to assess.

9. Q. Will there be any links or cooperation with FBI and regulators?
 
A: At this time no direct links with FBI and regulators have been planned. It is anticipated that regulators and enforcement agencies will be briefed.

>06/21/2007

10. Q: To assist me in preparing my company’s response to your recently released Fraud Prevention Database RFI, I would appreciate receiving the Appendix A – Fraud Data Elements table in a Microsoft Word format.
 
A: The complete RFI in Word format is available HERE.

>06/22/2007

11. Q. What did the Industry Working Group have in mind by the phrase "suspected or confirmed fraud reports"? Are such reports being used today? What are they and what kind of information do they contain? What is the standard for their preparation?
 
A: The Industry Working Group is developing its own definitions on "suspected fraud" and "confirmed fraud" reports. Nothing has been finalized at this time. It is anticipated that these and other definitions will be widely vetted at a later time.

12. Q: The RFI states that the database will qualify as a "credit reporting agency" under the Fair Credit Reporting Act ("FCRA"). Is it necessary for the database to be a credit reporting agency?
 
A: Because the database will receive and report out credit information about individuals from loan applications, the database will likely meet the statutory definition of a "credit reporting agency." Certain qualified privileges or safe harbors, as well as obligations, apply to credit reporting agencies under FCRA. For example, FCRA insulates a credit reporting agency from consumer actions for defamation, invasion of privacy and negligence unless the reported information was false and furnished with malice or willful intent to injure the consumer. Also, the Gramm-Leach-Bliely Act's protections of consumer privacy have exceptions both for preventing actual or potential fraud and for reporting to CRAs.

>07/10/2007

13. Q: Question #18 states, “Describe any third-party alliances/relationships”. Please provide the context for the third-party alliances/relationships.
 
A: We are looking for relationships directly relevant to the database project; e.g., a partner that would provide some of the database-related services.

14. Q: We require a NDA in order to release financial information.
 
A. We will hold confidential all company-specific information, such as company finances, and employment and business relationships, as stated in the RFI. At this stage we are interested in identifying companies that have a demonstrated capacity to fulfill the overall project requirements. We hope that you will be able to provide enough information for us to assess your company's general capacity without the need for a formal nondisclosure agreement, even if you are unable to provide all the financial information requested. If, as anticipated, we issue a detailed RFP, the RFP process will include appropriate protections for responding companies' information.