Community Development Banking List
05-11-2010, 07:58 AM
Original message from: andrea.e.mcgrath@gmail.com
Good morning
Building on a previous inquiry to this list serve from Community First Fund
on credit memo templates for underwriting our loan requests, I am working
with a NGO who is interested in starting a lending pool program that would
underwrite loans ranging from $500 - $5,000 with various payback structures.
The use of the loans would typically be for starting or expanding a
business, helping with the costs of purchasing a home, covering the costs
associated with education or emergency needs.
I've been researching (through secondary and primary sources) to uncover any
'standard' approaches to underwriting these types of small dollar loans for
(mostly) thin-to-no file clients - so we could have a better sense of how
best to structure and underwrite these loans (i.e. what data/risk factors to
include, weighting of those factors, credit history and references, payback
structures and review processes). To date, we've found excellent research on
the use of alternative data, emergence of alternative credit scores,
increasing financial innovations/services for the unbanked and under-banked
- but are keen to connect with peers and better understand the
approaches/structuring details .
Any suggestions from the members of this group on relevant resources,
templates, etc.. would be very helpful
Also, if anyone has also been underwriting similar type loans and could
share their own experiences - we would be keen to connect!
Many thanks in advance
ANDREA
Andrea E McGrath | Director
The Center for Applied Philanthropy
www.tpi.org/thecenter
160 Federal Street | Boston, MA 02110
Phone: (617) 596-7766
Email: amcgrath@tpi.org
Email2: andrea.e.mcgrath@gmail.com
Good morning
Building on a previous inquiry to this list serve from Community First Fund
on credit memo templates for underwriting our loan requests, I am working
with a NGO who is interested in starting a lending pool program that would
underwrite loans ranging from $500 - $5,000 with various payback structures.
The use of the loans would typically be for starting or expanding a
business, helping with the costs of purchasing a home, covering the costs
associated with education or emergency needs.
I've been researching (through secondary and primary sources) to uncover any
'standard' approaches to underwriting these types of small dollar loans for
(mostly) thin-to-no file clients - so we could have a better sense of how
best to structure and underwrite these loans (i.e. what data/risk factors to
include, weighting of those factors, credit history and references, payback
structures and review processes). To date, we've found excellent research on
the use of alternative data, emergence of alternative credit scores,
increasing financial innovations/services for the unbanked and under-banked
- but are keen to connect with peers and better understand the
approaches/structuring details .
Any suggestions from the members of this group on relevant resources,
templates, etc.. would be very helpful
Also, if anyone has also been underwriting similar type loans and could
share their own experiences - we would be keen to connect!
Many thanks in advance
ANDREA
Andrea E McGrath | Director
The Center for Applied Philanthropy
www.tpi.org/thecenter
160 Federal Street | Boston, MA 02110
Phone: (617) 596-7766
Email: amcgrath@tpi.org
Email2: andrea.e.mcgrath@gmail.com