Presented by:Arlene Lugo & Patti Lind
April 21, 2009
Direct Loan Models• By Choice
In response to market needs Due to banking conditions
• By Necessity Taking defaulted guaranteed loans in-house
• Component of Loan Services Loan guarantees, direct loans, grants
• Designed to be compatible with capacity Utilizing staff capacity Servicing by bank, other non-bank lender
Underwriting Guidelines
• For orgs making internal lending decisions
• For orgs using a bank to service direct loans
Guidelines endorsed by Board
Reflect organizational philosophy
Key Considerations for Direct Lending
Lending Criteria: Terms & Rates
Due Diligence: Underwriting to include funder requirements, credit analysis, character indicators, risk rating
Collateral Criteria: Fair value, resale value, type of collateral, loan to value
Collateral Procedures: Titled vehicles, real estate, chattel
Loan Servicing: Closing, billing, managing loan repayment
Portfolio Management: Accounting including individual/collective portfolio balances, reserve for doubtful accounts
Program Management
Former program model & outcomes
Current program model
Future: Growth Opportunities!
Patti LindExecutive DirectorThe Abilities Fund &Iowa Able Foundation307 North 13th, Ste
500Centerville, IA 52544Toll Free [email protected]
Arlene Lugo, ATPProgram DirectorCT Tech Act ProjectDSS/BRS 25 Sigourney StreetHartford, CT 06106 [email protected]/