Loan 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
Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Borrower Marketing
Copyright 2002: LIIF Market LIHF Products Marketing Prospects LIHF Lending Staff Borrower Marketing
Copyright 2002: LIIF Market LIHF Products Marketing Prospects Seek Funding Solution Marketing Materials Sponsor / Borrower LIHF Lending Staff Borrower Marketing
Copyright 2002: LIIF Market LIHF Products Marketing Prospects Seek Funding Solution Intention to Pursue Loan Marketing Materials Sponsor / Borrower LIHF Lending Staff Borrower Marketing
Copyright 2002: LIIF Market LIHF Products Marketing Prospects Seek Funding Solution Intention to Pursue Loan Interested Sponsor List Marketing Materials Sponsor / Borrower LIHF Lending Staff Borrower Marketing
Copyright 2002: LIIF Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Project Qualification
Copyright 2002: LIIF Project Qualification Qualify Project and Sponsor Interested Sponsor List LIHF Lending Staff
Copyright 2002: LIIF Project Qualification Qualify Project and Sponsor Interested Sponsor List Provide Loan Information Loan Guidelines, Requirements and Pre-Application Sponsor / Borrower LIHF Lending Staff
Copyright 2002: LIIF Project Qualification Qualify Project and Sponsor Interested Sponsor List Provide Loan Information Filled out Pre-Application Loan Guidelines, Requirements and Pre-Application Sponsor / Borrower LIHF Lending Staff
Copyright 2002: LIIF Project Qualification Qualify Project and Sponsor Interested Sponsor List Provide Loan Information Filled out Pre-Application Loan Guidelines, Requirements and Pre-Application Sponsor / Borrower Letter of Intention (Optional) LIHF Lending Staff
Copyright 2002: LIIF Project Qualification Qualify Project and Sponsor Interested Sponsor List Provide Loan Information Filled out Pre-Application Qualified Project List Loan Guidelines, Requirements and Pre-Application Sponsor / Borrower Letter of Intention (Optional) LIHF Lending Staff
Copyright 2002: LIIF Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Underwriting
Underwriting Prepare Narrative Qualified Project List LIHF Lending Staff
Copyright 2002: LIIF Underwriting Prepare Narrative Qualified Project List LIHF Lending Staff Other Financial Entities, i.e., project partners Investor Underwriting Criteria
Copyright 2002: LIIF Underwriting Prepare Narrative Qualified Project List Provide Detailed Loan Data Application Packet Borrower LIHF Lending Staff Other Financial Entities, i.e., project partners Investor Underwriting Criteria
Copyright 2002: LIIF Underwriting Prepare Narrative Qualified Project List Provide Detailed Loan Data Application Packet Borrower Independent Experts and External Consultants Audits, Appraisals, Surveys LIHF Lending Staff Other Financial Entities, i.e., project partners Investor Underwriting Criteria
Copyright 2002: LIIF Underwriting Prepare Narrative Qualified Project List Provide Detailed Loan Data Application Fee Application Packet Borrower Independent Experts and External Consultants Audits, Appraisals, Surveys Completed Application, Financial Reports, Project and Property Documents Other Financial Entities, i.e., project partners Investor Underwriting Criteria LIHF Lending Staff
Copyright 2002: LIIF Underwriting Prepare Narrative Qualified Project List Provide Detailed Loan Data Application Fee Loans Pending Approval Application Packet Borrower Independent Experts and External Consultants Audits, Appraisals, Surveys Completed Application, Financial Reports, Project and Property Documents Other Financial Entities, i.e., project partners Investor Underwriting Criteria LIHF Lending Staff
Copyright 2002: LIIF Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Loan Approval
Copyright 2002: LIIF Loan Approval Present Loan Packet Loans Pending Approval LIHF Lending Staff
Copyright 2002: LIIF Loan Approval Present Loan Packet Loans Pending Approval Review & Approve Loan LIHF Loan Committee (or Staff) LIHF Lending Staff Loan Narrative
Copyright 2002: LIIF Loan Approval Present Loan Packet Loans Pending Approval Review & Approve Loan Loan Approval (with conditions) LIHF Loan Committee (or Staff) LIHF Lending Staff Loan Narrative
Copyright 2002: LIIF Loan Approval Present Loan Packet Loans Pending Approval Review & Approve Loan Loan Narrative Loan Approval (with conditions) LIHF Loan Committee (or Staff) LIHF Lending Staff Loan Narrative Review & Approve Loan Package Other Financial Entities
Copyright 2002: LIIF Loan Approval Present Loan Packet Loans Pending Approval Review & Approve Loan Loan Narrative Loan Approval (with conditions) LIHF Loan Committee (or Staff) LIHF Lending Staff Loan Narrative Loan Approval Review & Approve Loan Package Other Financial Entities
Copyright 2002: LIIF Loan Approval Present Loan Packet Loans Pending Approval Review & Approve Loan Loan Narrative Approved Loans Loan Approval (with conditions) LIHF Loan Committee (or Staff) LIHF Lending Staff Loan Narrative Loan Approval Review & Approve Loan Package Other Financial Entities
Copyright 2002: LIIF Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Loan Commitment
Copyright 2002: LIIF Loan Commitment Negotiate Commitment Approved Loans LIHF Lending Staff
Copyright 2002: LIIF Loan Commitment Negotiate Commitment Approved Loans LIHF Lending Staff Accept / Reject Loan Conditions Borrower Commitment Letter
Copyright 2002: LIIF Loan Commitment Negotiate Commitment Approved Loans LIHF Lending Staff Accept / Reject Loan Conditions Borrower Commitment Letter Request for Modifications
Copyright 2002: LIIF Loan Commitment Negotiate Commitment Approved Loans LIHF Lending Staff Accept / Reject Loan Conditions Borrower Commitment Letter Request for Modifications Approve Loan Modifications LIHF Loan Committee (or Staff) Loan Change Request
Copyright 2002: LIIF Loan Commitment Negotiate Commitment Approved Loans LIHF Lending Staff Accept / Reject Loan Conditions Borrower Commitment Letter Request for Modifications Approve Loan Modifications LIHF Loan Committee (or Staff) Loan Change Request Loan Change Approval
Copyright 2002: LIIF Loan Commitment Negotiate Commitment Approved Loans LIHF Lending Staff Accept / Reject Loan Conditions Borrower Commitment Letter (with modifications) Request for Modifications Approve Loan Modifications LIHF Loan Committee (or Staff) Loan Change Request Loan Change Approval
Copyright 2002: LIIF Loan Commitment Negotiate Commitment Approved Loans LIHF Lending Staff Accept / Reject Loan Conditions Borrower Commitment Letter (with modifications) Signed Commitment Letter with Commitment Fee Request for Modifications Approve Loan Modifications LIHF Loan Committee (or Staff) Loan Change Request Loan Change Approval
Copyright 2002: LIIF Loan Commitment Negotiate Commitment Approved Loans Committed Loans LIHF Lending Staff Accept / Reject Loan Conditions Borrower Commitment Letter (with modifications) Signed Commitment Letter with Commitment Fee Request for Modifications Approve Loan Modifications LIHF Loan Committee (or Staff) Loan Change Request Loan Change Approval
Copyright 2002: LIIF Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Loan Closing
Copyright 2002: LIIF Loan Closing Handle Loan Closing Committed Loans LIHF Lending Staff
Copyright 2002: LIIF Loan Closing Handle Loan Closing Committed Loans Fulfill Loan Conditions Borrower LIHF Lending Staff Check list of Closing Documents
Copyright 2002: LIIF Loan Closing Handle Loan Closing Committed Loans Fulfill Loan Conditions Closing Documents Borrower LIHF Lending Staff Check list of Closing Documents
Copyright 2002: LIIF Loan Closing Handle Loan Closing Committed Loans Fulfill Loan Conditions Copies of Closing Documents Closing Documents Borrower LIHF Lending Staff Check list of Closing Documents Prepare Loan Documents Legal Counsel
Copyright 2002: LIIF Loan Closing Handle Loan Closing Committed Loans Fulfill Loan Conditions Copies of Closing Documents Closing Documents Borrower LIHF Lending Staff Check list of Closing Documents Prepare Loan Documents Legal Counsel Legal Loan Documents
Copyright 2002: LIIF Loan Closing Handle Loan Closing Committed Loans Fulfill Loan Conditions Copies of Closing Documents Closing Documents Borrower LIHF Lending Staff Check list of Closing Documents Prepare Loan Documents Legal Counsel Legal Loan Documents Other Financial Entities, i.e., project partners Legal Loan Documents & Service Fee
Copyright 2002: LIIF Loan Closing Handle Loan Closing Committed Loans Fulfill Loan Conditions Copies of Closing Documents Closing Documents Borrower LIHF Lending Staff Check list of Closing Documents Loan Documents Prepare Loan Documents Legal Counsel Execute Loan Documents Legal Loan Documents Other Financial Entities, i.e., project partners Legal Loan Documents & Service Fee Borrower
Copyright 2002: LIIF Loan Closing Handle Loan Closing Committed Loans Fulfill Loan Conditions Copies of Closing Documents Closing Documents Borrower LIHF Lending Staff Check list of Closing Documents Loan Documents Prepare Loan Documents Legal Counsel Execute Loan Documents Borrower Legal Loan Documents Signed Documents Other Financial Entities, i.e., project partners Legal Loan Documents & Service Fee
Copyright 2002: LIIF Loan Closing Handle Loan Closing Committed Loans Fulfill Loan Conditions Copies of Closing Documents Closing Documents Borrower LIHF Lending Staff Check list of Closing Documents Loan Documents Prepare Loan Documents Legal Counsel Execute Loan Documents Borrower Legal Documents Legal Loan Documents Signed Documents Document Safekeeping Other Financial Entities, i.e., project partners Legal Loan Documents & Service Fee
Copyright 2002: LIIF Loan Closing Handle Loan Closing Committed Loans Fulfill Loan Conditions Copies of Closing Documents Closed Loans Closing Documents Borrower LIHF Lending Staff Check list of Closing Documents Loan Documents Prepare Loan Documents Legal Counsel Execute Loan Documents Borrower Legal Documents Legal Loan Documents Signed Documents Document Safekeeping Other Financial Entities, i.e., project partners Legal Loan Documents & Service Fee
Copyright 2002: LIIF Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Loan Origination & Closing Borrower Marketing Borrower Marketing Project Qualification Project Qualification Underwriting Underwriting Loan Approval Loan Approval Loan Commitment Loan Commitment Loan Closing Loan Closing Post Closing Follow-up Post Closing Follow-up Business Processes Business Processes
Copyright 2002: LIIF Post Closing Follow-up
Copyright 2002: LIIF Post Closing Follow-up Closed Loans Follow up on Closed Loans LIHF Lending Staff
Copyright 2002: LIIF Post Closing Follow-up Closed Loans Follow up on Closed Loans LIHF Lending Staff Enter Loan in Servicing System LIHF Finance Staff Check / Wire Request
Copyright 2002: LIIF Post Closing Follow-up Closed Loans Review Servicing Requirements Borrower Follow up on Closed Loans LIHF Lending Staff Enter Loan in Servicing System LIHF Finance Staff Check / Wire Request Loan Funds
Copyright 2002: LIIF Post Closing Follow-up Closed Loans Review Servicing Requirements Borrower Follow up on Closed Loans LIHF Lending Staff Post Closing Follow-up Form Enter Loan in Servicing System LIHF Finance Staff Check / Wire Request Loan Funds
Copyright 2002: LIIF Post Closing Follow-up Closed Loans Review Servicing Requirements Borrower Follow up on Closed Loans LIHF Lending Staff Post Closing Follow-up Form Enter Loan in Servicing System LIHF Finance Staff Payment Schedule Check / Wire Request Loan Funds
Copyright 2002: LIIF Post Closing Follow-up Closed Loans Review Servicing Requirements Borrower Follow up on Closed Loans LIHF Lending Staff Post Closing Follow-up Form Enter Loan in Servicing System LIHF Finance Staff Payment Schedule Check / Wire Request Loan Funds Loans Receivable Ledger
Copyright 2002: LIIF Post Closing Follow-up Closed Loans Review Servicing Requirements Closing Letter with Payment Schedule & Monitoring Requirements Borrower Follow up on Closed Loans LIHF Lending Staff Post Closing Follow-up Form Enter Loan in Servicing System LIHF Finance Staff Payment Schedule Check / Wire Request Loan Funds Loans Receivable Ledger
Copyright 2002: LIIF Post Closing Follow-up Closed Loans Review Servicing Requirements Loan Monitoring Status & History Closing Letter with Payment Schedule & Monitoring Requirements Borrower Follow up on Closed Loans LIHF Lending Staff Post Closing Follow-up Form Enter Loan in Servicing System LIHF Finance Staff Payment Schedule Check / Wire Request Loan Funds Loans Receivable Ledger