While CDFIs are unique in their mission, target audience, strategies and processes, many face common challenges in their origination processes. Despite advances in technology, age-old questions still surface: how can CDFIs effectively reach and expand their target audience, quickly and securely process applications, and leverage resources to maximize efficiency? The stakes are enormous, since addressing these issues effectively means greater mission-related impact, whether the focus is financing small business owners to create jobs, assisting first-time homebuyers, reimagining how cities can renovate available space, and more.

In this four-part series we discuss how Craftsman Technology Group has worked with a range of CDFIs to use Salesforce to address these common challenges. The series covers four stages of loan origination that many CDFIs experience:

• Intake: Begins with the first point of contact between a CDFI and potential clients, up to the point where an application is sent. Oftentimes a pre-qualification or pre-screening process is involved. (Learn more.)
• Application: Consists of data solicitation from the potential client. For consumer loans this means filling out a loan application. For business loans it may or may not involve an application, with larger deals focusing on meetings and negotiations. Collection of documents, such as IDs, bank statements, financials, proof of address, etc. is critical at this stage. (Learn more.)
• Underwriting: Measures the applicant’s credit-worthiness and  risk profile. This can be indicated by two criteria. The first is a potential borrower’s ability to pay as indicated by cash flow measures. The second is the borrower’s willingness to pay, which is often determined based on credit history, as well as conversations with the applicant. (Learn more.)
• Closing: Occurs once the underwriter and/or Loan Committee has approved the loan, and the borrower agrees to the loan terms. At this point the promissory notes are drawn up and signed, closing steps are followed, and the loan is set up in the servicing system. (Learn more.)

Solutions described in this blog series are drawn from real-life implementations with Craftsman clients. Stay tuned for the first installment in October 2021.