CAMEO held its inaugural three-day, hands-on training for business coaching and lending organizations on the theory and practice of microlending underwriting in Los Angeles in early November. Susan Brown, CAMEO’s microloan specialist, developed the training which covered underwriting, global cash, credit history, debt-to-income and bank statement analyses. Participants applied underwriting criteria and wrote credit memos based on examples of real microloan applications, made recommendations, and structures each deal.
What made this training different?
- We had the participants apply all the analyses they learned to three actual microloan applications.
- We provided a structured credit memo form that walked participants through each step of the underwriting process, and compared each deal’s particulars to sample underwriting criteria.
- We included a comparative introduction to Community Advantage lending, so participants saw how microlending is different.
- We introduced all the elements of a loan program, outlining all the infrastructure, capacities and policy elements needed to run a quality loan program.
- We explored various for roles a loan committee in the microlending approval process.
- We delved into the differences in ‘point of view’ and the role between a business coach and a loan underwriters.
- We considered how an organization’s target market impacts loan product design and underwriting criteria.
- Finally, we discussed mission, scale, impact and technology – prompting participants to consider their future direction and choices.
Participants had this to say:
As a business coach, this training helped me understand how the loan process works. I have more knowledge to prepare clients before they apply for a loan. – Edwin Rodriguez, Mission Economic Development Agency
I believe that you taught us a golden rule that is often missed: As a lender (and more generally as a businessperson), we are actively trying to reach a “yes” without compromising our standards. – Mohammed Al Ani, International Rescue Committee
I started this session with minimal understanding of the underwriting process and am walking away feeling well-equipped to help my organization with our loan program. This course shed light on the importance of a structured process and has encouraged us to review how to scale our growth and impact. – Alejandra Garcia, Leadership for Urban Renewal Network
Susan was fantastic. All the materials were digestible. She helped us understand the very differing roles of TA provider and lender. – Azusena Favela Leadership for Urban Renewal Network
For business coaching organizations, this training helped staff think like a lender so that their loan referrals are more likely to be funded. These organizations will be able to train business clients in the key components most likely to get them qualified for financing. Finally, staff can now talk specific underwriting terms to lenders, to better discern how to channel referrals to the most appropriate lender.
For community lenders the training provided a framework to make more consistent credit decisions for stronger portfolio performance and loan volume for greater impact.
CAMEO wants to offer this valuable information to more audiences. Please contact us if you are interested in this training.