Overview of Products

DownHome Solutions’ core product is DownHome Loan Manager (DLM), a cloud-based loan servicing platform that has grown and evolved with the CDFI industry for more than 25 years. Beyond the core product, there are a variety of add-on modules to meet lenders’ needs, such as CDFI Fund reporting, SBA reporting, and credit bureau reporting. DownHome prides itself on transparency and provides a list of modules and their prices on its website. DLM servicing is used by a wide range of CDFI types and loan types, ranging from microloans to affordable housing development, commercial real estate, and gap financing.

How does the product fit into the work cycle of a CDFI?

Wogstad shared that loan servicing has long been the heart of DLM, while many other features have been added over time. For example, DLM offers an online portal that allows a lender’s borrowers to log in, see their accounts in real time, and make online payments. DLM also includes loan origination capabilities allowing a CDFI to design and generate loan documents. DownHome Solutions is especially attentive to the unique tracking and reporting needs of community lenders. As an example, it developed a specialized SBA Community Advantage module for tracking these complex loans and reporting on them through the creation of SBA 1502 reports.

Are there other systems that your product works with? How does the product integrate with other platforms and systems?

Yes. DLM includes a robust API (application programming interface) that allows the platform to be integrate and exchange data with other software systems. For example, if a CDFI decides to use an outside service for processing online applications, that service can push data directly to DLM through the API.  Fully developed integrations are already established with other technology solutions, such as a Lenderfit, Outcome Tracker, and Salesforce, and with accounting systems such as QuickBooks, Sage Intacct, etc.

What does onboarding generally look like?

Onboarding and implementation begin with initial discussions with clients to confirm needed modules and to fully scope the needs of the CDFI to ensure that the appropriate modules are included.

Wogstad noted that an onboarding process may unfold quite differently, depending on whether the organization has an existing portfolio of loans that will require a data migration. DownHome has worked with many CDFIs to migrate data from systems that they may have outgrown or from spreadsheet tools that are no longer sufficient. The quality of the original data will influence the timeline for a data migration as there may be need for data cleansing work. For lenders who are launching new programs or who have less complicated migrations, the set up and implementation may take only a few days or weeks.

Training is also a critical part of the onboarding process to ensure that users successfully implement the core DLM system and add-on modules, as discussed in the next question.

What support and training are offered?

Training begins with an orientation for all who need general access to the platform, followed by more in-depth sessions. This includes instruction on how to access and navigate the platform as well as how to perform basic tasks such as running reports. From there, DownHome provides a series of targeted training based on users' specific needs. The training of key staff is designed based on the functional uses of the platform and takes place at the pace that the organization wants to follow.

Beyond training, DownHome offers support to users in multiple ways. Wogstad noted that DownHome prides itself on its availability to customers and personalized support. Within the platform itself a feedback button is available to send direct messages along with screenshots directly to the support desk. A Quick Help button allows the user to schedule a Zoom session from a master support staff calendar.  Email and telephone-based support services are also available for technical support and ongoing training.

What makes adoption successful? What do you wish CDFIs knew before they began an implementation?

DownHome carefully evaluates a client’s situation at the outset of the relationship to understand how they operate their loan programs.

Based on his experience working through implementations, Wogstad noted that it's important that CDFIs focus on their needs and really identify the pain points in their processes. He suggests that a single technology provider is not likely to meet all of a CDFI’s needs, so they should prioritize their most critical requirements that can be met within their initial budget. It is also important to consider the range of staff duties and perspectives when adopting a new platform and implementing a training plan.

What types of CDFIs use DLM – are there some that are a better fit?

DownHome Loan Manager serves a wide spectrum CDFI types, ranging in size and complexity. DLM users manage portfolios that include small credit-builder loans, microloans (<= $50,000), home mortgages, housing construction, and multi-million dollar community development projects.

What integrations or reports does your tech solution allow for in terms of CDFI reporting, CDFI certification, or other data requirements?

DLM has a wide range of built-in reports that encompass the essentials for accurate loan servicing, from trial balance reports, delinquency reporting, and risk assessment, sortable by loan fund, lending sectors, etc.  User-friendly report selectors allow lenders to pull active portfolio reports or historical reports for any selected time frame. For specialized CDFI reporting, DLM produces a Transaction Level Report (TLR) in formats needed for the CDFI Fund annual reporting, with comprehensive validation and lookups for geocoding and other requirements of the CDFI Fund's AMIS system. DLM also reports electronically to the SBA Microloan Program’s MPERS system and the SBA 1502 reporting system for Community Advantage lending. These modules are detailed on DownHome's website.

How has the CDFI industry changed in recent years and where do you think the industry is going, in terms of technology?

Wogstad has been involved in the field of community lending since before the establishment of the CDFI Fund and has a broad perspective to share on the changes in the industry. He remarked on the explosion in the number of CDFIs and funding available through the CDFI Fund and other sources over the past 30 years. There have also been huge technology gains in recent years, particularly when looking back to the days prior to the widespread adoption of cloud-based technologies. He noted that having a web-based system was a clear differentiator for organizations at the onset of the pandemic. The ability to have online systems to support collaboration and allow for access to information remotely was a game changer. Wogstad anticipates that the future of the technology will be driven by the needs of the CDFI industry itself, as it evolves and creatively responds to new demands – such as the climate-driven initiatives on the horizon. These are the trends to which CDFIs – and the technology providers that support them – will need to be paying close attention. The importance of the CDFI industry lies in its mission-driven efforts to bring financial resources to underserved communities. DownHome is dedicated to developing and enhancing the technological tools needed to carry out this important work.