pexels-kindelmedia-7979605
Picture of DownHome Solutions

DownHome Solutions

Community Lenders are Key in Natural Disaster Recovery

As we navigate an increasingly unpredictable world, the role of lenders in disaster recovery has never been more crucial. While federal funding from FEMA and other agencies is under stress — the SBA recently exhausted its disaster lending funds — mission-driven lenders are embedded in their communities and nurture relationships for long-term support. The CDFI Coalition says:

FEMA can handle much of the short-term emergency assistance, but long after federal government is gone, mission-driven lenders – particularly those with long-standing ties to affected communities – will be on the ground working to restore housing stock, rebuild community facilities, and provide technical assistance and financial assistance to businesses and families.

 

It’s clear that the need for community lending solutions is growing. If your organization is stepping up lending efforts to assist clients in the wake of disasters or needing to provide flexible options to your current borrowers, DownHome Solutions’ loan servicing software can enhance your operations and support your mission.

Natural disasters create urgent financial challenges for individuals and businesses alike. As a lender, your ability to quickly and effectively respond to these challenges can make a significant difference in the recovery journey of your clients. DownHome Loan Manager (DLM) is cloud-based, giving you the freedom to manage disaster recovery lending from anywhere. This capability not only improves your operational efficiency but also ensures that your team can respond to client needs without geographical limitations. With DLM, you can easily increase your lending capacity and effectiveness, ensuring that you are there for your clients when they need you most.

In the aftermath of a disaster, lenders face challenges in managing loan deferrals and workouts, as the financial landscape is shifting dramatically. Take Hurricane Katrina, for instance—during this disaster, the SBA allowed community lenders to defer loans, which played a crucial role in recovery. DownHome Loan Manager offers unparalleled flexibility, allowing you to make necessary modifications and workouts with ease, as well as accurately report those changes to the Credit Bureaus. Whether it’s deferring payments, restructuring loans, or offering new financial products, our platform streamlines these processes, so you can focus on what really matters—supporting your clients.

Navigating the complex landscape of disaster recovery lending requires precise reporting to funders and adherence to compliance requirements. DownHome Loan Manager provides robust reporting features that allow you to generate the necessary documentation to meet compliance requirements for the CDFI fund, and the SBA’s Microloan and Community Advantage programs. As funding for fighting climate change grows, so does the importance of climate-impact reporting. We’ll be developing customized add-ons to DLM as soon as information is released about compliance and reporting requirements for the new CCIA funding.

As you enhance your lending efforts to support disaster recovery, investing in the right loan servicing software is key. With flexibility, remote access, comprehensive reporting, and upcoming climate-impact features, our platform is designed to meet the unique challenges of disaster recovery lending. Don’t just react to disasters—be prepared and proactive. Let us help you make a difference in your clients’ lives during their most challenging times.

Ready to transform your disaster recovery lending process? Click the button below to schedule a free demo.

Share this Post: