Loan Origination and ClosingLoan Origination and Closing
The following document is posted by the Low Income Investment Fund (LIIF) in accordance with the requirements of the Fannie Mae Foundation’s October 2001 grant in support of LIIF’s continued information technology (IT) development. Materials posted by LIIF outline the organization’s strategic IT plan, as well as document the implementation process of this plan. LIIF’s IT plan included customization of loan servicing software, report automation, impact statistics generation, fund administration, and asset liability monitoring. LIIF’s knowledge and experience developing this IT workplan is posted as an aid to other non-profit Community Development Financial Institutions (CDFIs) who may be generating their own IT workplan and who may find the subsequent materials helpful in that regard.
Copyright 2002: LIIF
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
Borrower MarketingBorrower Marketing
Copyright 2002: LIIF
Market LIHFProducts
MarketingProspects
LIHF LendingStaff
Borrower MarketingBorrower Marketing
Copyright 2002: LIIF
Market LIHFProducts
MarketingProspects
SeekFundingSolution
MarketingMaterials
Sponsor / Borrower
LIHF LendingStaff
Borrower MarketingBorrower Marketing
Copyright 2002: LIIF
Market LIHFProducts
MarketingProspects
SeekFundingSolution
Intention toPursue Loan
MarketingMaterials
Sponsor / Borrower
LIHF LendingStaff
Borrower MarketingBorrower Marketing
Copyright 2002: LIIF
Market LIHFProducts
MarketingProspects
SeekFundingSolution
Intention toPursue Loan
InterestedSponsor List
MarketingMaterials
Sponsor / Borrower
LIHF LendingStaff
Borrower MarketingBorrower Marketing
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
Project QualificationProject Qualification
Copyright 2002: LIIF
Project QualificationProject Qualification
QualifyProject and
Sponsor
InterestedSponsor List
LIHF LendingStaff
Copyright 2002: LIIF
Project QualificationProject Qualification
QualifyProject and
Sponsor
InterestedSponsor List
Provide LoanInformation
Loan Guidelines,Requirements
and Pre-Application
Sponsor / Borrower
LIHF LendingStaff
Copyright 2002: LIIF
Project QualificationProject Qualification
QualifyProject and
Sponsor
InterestedSponsor List
Provide LoanInformation
Filled outPre-Application
Loan Guidelines,Requirements
and Pre-Application
Sponsor / Borrower
LIHF LendingStaff
Copyright 2002: LIIF
Project QualificationProject Qualification
QualifyProject and
Sponsor
InterestedSponsor List
Provide LoanInformation
Filled outPre-Application
Loan Guidelines,Requirements
and Pre-Application
Sponsor / Borrower
Letter ofIntention(Optional)
LIHF LendingStaff
Copyright 2002: LIIF
Project QualificationProject Qualification
QualifyProject and
Sponsor
InterestedSponsor List
Provide LoanInformation
Filled outPre-Application
QualifiedProject List
Loan Guidelines,Requirements
and Pre-Application
Sponsor / Borrower
Letter ofIntention(Optional)
LIHF LendingStaff
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
UnderwritingUnderwriting
Copyright 2002: LIIF
UnderwritingUnderwriting
PrepareNarrative
QualifiedProject List
LIHF LendingStaff
Copyright 2002: LIIF
UnderwritingUnderwriting
PrepareNarrative
QualifiedProject List
LIHF LendingStaff Other Financial
Entities, i.e., project partners
InvestorUnderwriting
Criteria
Copyright 2002: LIIF
UnderwritingUnderwriting
PrepareNarrative
QualifiedProject List
Provide DetailedLoan Data
ApplicationPacket
Borrower
LIHF LendingStaff
Other FinancialEntities, i.e.,
project partners
InvestorUnderwriting
Criteria
Copyright 2002: LIIF
UnderwritingUnderwriting
PrepareNarrative
QualifiedProject List
Provide DetailedLoan Data
ApplicationPacket
Borrower
Independent Experts
and External ConsultantsAudits,
Appraisals,Surveys
LIHF LendingStaff
Other FinancialEntities, i.e.,
project partners
InvestorUnderwriting
Criteria
Copyright 2002: LIIF
UnderwritingUnderwriting
PrepareNarrative
QualifiedProject List
Provide DetailedLoan Data
ApplicationFee
ApplicationPacket
Borrower
Independent Experts
and External ConsultantsAudits,
Appraisals,Surveys
Completed Application,Financial Reports,
Project and PropertyDocuments
Other FinancialEntities, i.e.,
project partners
InvestorUnderwriting
Criteria
LIHF LendingStaff
Copyright 2002: LIIF
UnderwritingUnderwriting
PrepareNarrative
QualifiedProject List
Provide DetailedLoan Data
ApplicationFee
Loans PendingApproval
ApplicationPacket
Borrower
Independent Experts
and External ConsultantsAudits,
Appraisals,Surveys
Completed Application,Financial Reports,
Project and PropertyDocuments
Other FinancialEntities, i.e.,
project partners
InvestorUnderwriting
Criteria
LIHF LendingStaff
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
Loan ApprovalLoan Approval
Copyright 2002: LIIF
Loan ApprovalLoan Approval
PresentLoan Packet
Loans Pending Approval
LIHF Lending Staff
Copyright 2002: LIIF
Loan ApprovalLoan Approval
PresentLoan Packet
Loans Pending Approval
Review &Approve
Loan
LIHF Loan Committee(or Staff)
LIHF Lending Staff
LoanNarrative
Copyright 2002: LIIF
Loan ApprovalLoan Approval
PresentLoan Packet
Loans Pending Approval
Review &Approve
Loan
Loan Approval(with conditions)
LIHF Loan Committee(or Staff)
LIHF Lending Staff
LoanNarrative
Copyright 2002: LIIF
Loan ApprovalLoan Approval
PresentLoan Packet
Loans Pending Approval
Review &Approve
Loan
Loan Narrative
Loan Approval(with conditions)
LIHF Loan Committee(or Staff)
LIHF Lending Staff
LoanNarrative
Review &Approve Loan
Package
Other Financial Entities
Copyright 2002: LIIF
Loan ApprovalLoan Approval
PresentLoan Packet
Loans Pending Approval
Review &Approve
Loan
Loan Narrative
Loan Approval(with conditions)
LIHF Loan Committee(or Staff)
LIHF Lending Staff
LoanNarrative Loan Approval
Review &Approve Loan
Package
Other Financial Entities
Copyright 2002: LIIF
Loan ApprovalLoan Approval
PresentLoan Packet
Loans Pending Approval
Review &Approve
Loan
Loan Narrative
ApprovedLoans
Loan Approval(with conditions)
LIHF Loan Committee(or Staff)
LIHF Lending Staff
LoanNarrative Loan Approval
Review &Approve Loan
Package
Other Financial Entities
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
Loan CommitmentLoan Commitment
Copyright 2002: LIIF
Loan CommitmentLoan Commitment
NegotiateCommitment
ApprovedLoans
LIHF Lending Staff
Copyright 2002: LIIF
Loan CommitmentLoan Commitment
NegotiateCommitment
ApprovedLoans
LIHF Lending Staff
Accept / RejectLoan
Conditions
Borrower
Commitment Letter
Copyright 2002: LIIF
Loan CommitmentLoan Commitment
NegotiateCommitment
ApprovedLoans
LIHF Lending Staff
Accept / RejectLoan
Conditions
Borrower
Commitment Letter
Request for Modifications
Copyright 2002: LIIF
Loan CommitmentLoan Commitment
NegotiateCommitment
ApprovedLoans
LIHF Lending Staff
Accept / RejectLoan
Conditions
Borrower
Commitment Letter
Request for Modifications
ApproveLoan
Modifications
LIHF Loan Committee(or Staff)
Loan Change Request
Copyright 2002: LIIF
Loan CommitmentLoan Commitment
NegotiateCommitment
ApprovedLoans
LIHF Lending Staff
Accept / RejectLoan
Conditions
Borrower
Commitment Letter
Request for Modifications
ApproveLoan
Modifications
LIHF Loan Committee(or Staff)
Loan Change Request
Loan Change Approval
Copyright 2002: LIIF
Loan CommitmentLoan Commitment
NegotiateCommitment
ApprovedLoans
LIHF Lending Staff
Accept / RejectLoan
Conditions
Borrower
Commitment Letter(with modifications)
Request for Modifications
ApproveLoan
Modifications
LIHF Loan Committee(or Staff)
Loan Change Request
Loan Change Approval
Copyright 2002: LIIF
Loan CommitmentLoan Commitment
NegotiateCommitment
ApprovedLoans
LIHF Lending Staff
Accept / RejectLoan
Conditions
Borrower
Commitment Letter(with modifications)
Signed Commitment Letter with
Commitment Fee
Request for Modifications
ApproveLoan
Modifications
LIHF Loan Committee(or Staff)
Loan Change Request
Loan Change Approval
Copyright 2002: LIIF
Loan CommitmentLoan Commitment
NegotiateCommitment
ApprovedLoans
CommittedLoans
LIHF Lending Staff
Accept / RejectLoan
Conditions
Borrower
Commitment Letter(with modifications)
Signed Commitment Letter with
Commitment Fee
Request for Modifications
ApproveLoan
Modifications
LIHF Loan Committee(or Staff)
Loan Change Request
Loan Change Approval
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
Loan ClosingLoan Closing
Copyright 2002: LIIF
Loan ClosingLoan Closing
Handle LoanClosing
CommittedLoans
LIHF Lending Staff
Copyright 2002: LIIF
Loan ClosingLoan Closing
Handle LoanClosing
CommittedLoans
Fulfill LoanConditions
Borrower
LIHF Lending Staff
Check list ofClosing Documents
Copyright 2002: LIIF
Loan ClosingLoan Closing
Handle LoanClosing
CommittedLoans
Fulfill LoanConditions
ClosingDocuments
Borrower
LIHF Lending Staff
Check list ofClosing Documents
Copyright 2002: LIIF
Loan ClosingLoan Closing
Handle LoanClosing
CommittedLoans
Fulfill LoanConditions
Copies of Closing DocumentsClosing
Documents
Borrower
LIHF Lending Staff
Check list ofClosing Documents
Prepare Loan
Documents
Legal Counsel
Copyright 2002: LIIF
Loan ClosingLoan Closing
Handle LoanClosing
CommittedLoans
Fulfill LoanConditions
Copies of Closing DocumentsClosing
Documents
Borrower
LIHF Lending Staff
Check list ofClosing Documents
Prepare Loan
Documents
Legal Counsel
Legal Loan Documents
Copyright 2002: LIIF
Loan ClosingLoan Closing
Handle LoanClosing
CommittedLoans
Fulfill LoanConditions
Copies of Closing DocumentsClosing
Documents
Borrower
LIHF Lending Staff
Check list ofClosing Documents
Prepare Loan
Documents
Legal Counsel
Legal Loan Documents
Other FinancialEntities, i.e.,
project partners
Legal Loan Documents &Service Fee
Copyright 2002: LIIF
Loan ClosingLoan Closing
Handle LoanClosing
CommittedLoans
Fulfill LoanConditions
Copies of Closing DocumentsClosing
Documents
Borrower
LIHF Lending Staff
Check list ofClosing Documents Loan
Documents
Prepare Loan
Documents
Legal Counsel
ExecuteLoan
Documents
Legal Loan Documents
Other FinancialEntities, i.e.,
project partners
Legal Loan Documents &Service Fee
Borrower
Copyright 2002: LIIF
Loan ClosingLoan Closing
Handle LoanClosing
CommittedLoans
Fulfill LoanConditions
Copies of Closing DocumentsClosing
Documents
Borrower
LIHF Lending Staff
Check list ofClosing Documents Loan
Documents
Prepare Loan
Documents
Legal Counsel
ExecuteLoan
Documents
Borrower
Legal Loan Documents
Signed Documents
Other FinancialEntities, i.e.,
project partners
Legal Loan Documents &Service Fee
Copyright 2002: LIIF
Loan ClosingLoan Closing
Handle LoanClosing
CommittedLoans
Fulfill LoanConditions
Copies of Closing DocumentsClosing
Documents
Borrower
LIHF Lending Staff
Check list ofClosing Documents Loan
Documents
Prepare Loan
Documents
Legal Counsel
ExecuteLoan
Documents
BorrowerLegal
Documents
Legal Loan Documents
Signed Documents
DocumentSafekeeping
Other FinancialEntities, i.e.,
project partners
Legal Loan Documents &Service Fee
Copyright 2002: LIIF
Loan ClosingLoan Closing
Handle LoanClosing
CommittedLoans
Fulfill LoanConditions
Copies of Closing Documents
ClosedLoans
ClosingDocuments
Borrower
LIHF Lending Staff
Check list ofClosing Documents Loan
Documents
Prepare Loan
Documents
Legal Counsel
ExecuteLoan
Documents
BorrowerLegal
Documents
Legal Loan Documents
Signed Documents
DocumentSafekeeping
Other FinancialEntities, i.e.,
project partners
Legal Loan Documents &Service Fee
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
Loan Origination & ClosingLoan Origination & Closing
Borrower MarketingBorrower Marketing Project QualificationProject Qualification UnderwritingUnderwriting Loan ApprovalLoan Approval Loan CommitmentLoan Commitment Loan ClosingLoan Closing Post Closing Follow-upPost Closing Follow-up
Business ProcessesBusiness Processes
Copyright 2002: LIIF
Post Closing Follow-upPost Closing Follow-up
Copyright 2002: LIIF
Post Closing Follow-upPost Closing Follow-up
ClosedLoans
Follow up onClosed Loans
LIHF Lending Staff
Copyright 2002: LIIF
Post Closing Follow-upPost Closing Follow-up
ClosedLoans
Follow up onClosed Loans
LIHF Lending Staff
Enter Loan in ServicingSystem
LIHF Finance Staff
Check / WireRequest
Copyright 2002: LIIF
Post Closing Follow-upPost Closing Follow-up
ClosedLoans
ReviewServicing
Requirements
Borrower
Follow up onClosed Loans
LIHF Lending Staff
Enter Loan in ServicingSystem
LIHF Finance Staff
Check / WireRequest
LoanFunds
Copyright 2002: LIIF
Post Closing Follow-upPost Closing Follow-up
ClosedLoans
ReviewServicing
Requirements
Borrower
Follow up onClosed Loans
LIHF Lending Staff
Post ClosingFollow-up Form
Enter Loan in ServicingSystem
LIHF Finance Staff
Check / WireRequest
LoanFunds
Copyright 2002: LIIF
Post Closing Follow-upPost Closing Follow-up
ClosedLoans
ReviewServicing
Requirements
Borrower
Follow up onClosed Loans
LIHF Lending Staff
Post ClosingFollow-up Form
Enter Loan in ServicingSystem
LIHF Finance Staff
PaymentSchedule
Check / WireRequest
LoanFunds
Copyright 2002: LIIF
Post Closing Follow-upPost Closing Follow-up
ClosedLoans
ReviewServicing
Requirements
Borrower
Follow up onClosed Loans
LIHF Lending Staff
Post ClosingFollow-up Form
Enter Loan in ServicingSystem
LIHF Finance Staff
PaymentSchedule
Check / WireRequest
LoanFunds
Loans ReceivableLedger
Copyright 2002: LIIF
Post Closing Follow-upPost Closing Follow-up
ClosedLoans
ReviewServicing
RequirementsClosing Letter with Payment Schedule &
Monitoring Requirements Borrower
Follow up onClosed Loans
LIHF Lending Staff
Post ClosingFollow-up Form
Enter Loan in ServicingSystem
LIHF Finance Staff
PaymentSchedule
Check / WireRequest
LoanFunds
Loans ReceivableLedger
Copyright 2002: LIIF
Post Closing Follow-upPost Closing Follow-up
ClosedLoans
ReviewServicing
Requirements
Loan Monitoring Status & History
Closing Letter with Payment Schedule &
Monitoring Requirements Borrower
Follow up onClosed Loans
LIHF Lending Staff
Post ClosingFollow-up Form
Enter Loan in ServicingSystem
LIHF Finance Staff
PaymentSchedule
Check / WireRequest
LoanFunds
Loans ReceivableLedger