Mission-Driven Lenders and Community Development Financial Institutions demand purpose-built loan management software solutions with integrated Metro 2® reporting capabilities.
That sounds like a tall order. And in this post, we’re going to break the discussion down into bite-size chunks for CDFIs, Nonprofit Lenders, and Mission-Driven Lenders (MDLs) of all scopes and sizes. Lenders can expect to learn:
- The business-critical elements in an end-to-end loan servicing and reporting software solution
- The role of Financial Technology, or FinTech, in the loan management and servicing process
- What Metro 2® reporting is and why it’s critical to a streamlined loan management software solution
- Where you can go for more information
We’ve got a lot of ground to cover, so let’s get started.
What are the business-critical elements of an end-to-end loan management, servicing, and reporting solution?
Typical lender-based software solutions enable lenders to take applications, make loans, process and account for transactions and monitor cash flow and delinquency. These are the bare minimum requirements. Mission-Driven Lenders (MDLs) require purpose-built, feature-rich software applications to manage their portfolios.
Credit reporting is one of these critical requirements. Fair, accurate credit reporting is essential to the credit management and building process, and Metro 2® reporting is the gold standard.
But what exactly is Metro 2® reporting, and why is it essential in a loan management software solution designed for Mission-Driven Lenders?
What is Metro 2®?
According to Wikipedia, Metro 2® is a data specification created by the Consumer Data Industry Association for credit reporting data furnishers (who are members of the credit bureau with a data furnishing service agreement) to report consumers’ credit history information to major credit bureaus electronically and in a standardized format. It is implemented in credit reporting software packages. The specification is extensive and is designed to standardize a wide range of credit history information while complying with federal laws and regulations in credit reporting (such as accommodating consumer disputes and disputed status of information).
Why is Metro 2® reporting so important to MDLs and CDFIs?
The Fair Credit Reporting Act (FCRA) mandates and oversees fair and accurate credit reporting for consumers. It also supports privacy and responsible use of consumer credit information. This means that Metro 2® files must support consumer challenges, updates, and edits for error correction.
Reporting credit-based transactions to credit bureaus like Equifax, Transunion, and Experion can be an extremely time-consuming and complex process. The Metro 2® electronic data format and its associated APIs (application programming interfaces) can also be challenging to work with. Error correction, often done by third-party companies, places another layer of complexity on top of the Metro 2® reporting process.
MDLs, including Community Development Financial Institutions (CDFIs), are in the business of lending money for community development projects. In the words of the FDIC, “These institutions already play a significant role in the minority, low- and moderate-income, and rural communities they serve.”
These critically important, community-focused financial institutions and non-profit lenders of all sizes and scopes need reliable, industry-tested, cost-effective, purpose-built software solutions, including Metro 2® reporting capabilities.
The role of IvyTek in the end-to-end loan management, servicing, and Metro 2® reporting process.
What does end-to-end mean in the world of financial technology and software? For CDFIs and non-profit lenders, it means a 360-degree view to manage all aspects of the loan management process, including Metro 2® reporting.
IvyTek leverages our strategic partnership with Salesforce, the number one CRM platform for CDFIs. That’s why our end-to-end loan management software is available through the Salesforce App Exchange for security, scalability, reliability, and accessibility. You just create an account and log into our app on the Salesforce App Exchange, and our software provides everything you need, including Metro 2® reporting. You do all of your loan management and servicing right from your customized dashboard.
At Ivytek, that’s what we mean by “end-to-end” loan management.
We also go way above and beyond the basics of loan management and servicing software tools. We provide essential additional MDL/CDFI-specific functionality, including:
- Built-In Business Intelligence
- Automated Workflows
- Social Collaboration
- Document Management
- Mobile Access
Why work with IvyTek?
We know that focusing on the communities you serve is what matters most! We believe that technology should be a tool to enhance your lending strategies, not an operational burden. IvyTek helps mission-driven lenders implement and seamlessly integrate the Salesforce CRM product into your business systems.
Salesforce App Exchange integration brings the power and affordability of SaaS at an enterprise level to lenders of all sizes.
What does IvyTek software provide for Nonprofit MDLs and CDFIs?
- Innovative, affordable origination, underwriting, servicing, collection, and industry compliance features
- Simple customization—over 125 pre-built reports along with customizable reports, all available on an intuitive, secure dashboard with need-to-know access privileges
- Web services, including online loan applications, document uploads, borrower portals, and eSignature (DocuSign)
- Accounting integrations with software like QuickBooks, ACH Payments, and ACH Funding
- 360-degree view of your loan ecosystem in the Salesforce App Exchange—empowers your team and your clients with need-to-know access to critical, actionable information and interactive dashboards
Are you ready to streamline your loan management operations? Schedule a Discovery Call today.
We’ll also be attending the 2022 CBA Credit Building Symposium, June 22 – June 24 at The Mayflower Hotel, Washington, DC. We’ll be announcing some really cool new products with our partners at the Credit Builders Alliance. Make sure you stop by our booth or book a consultation with one of our solutions experts in advance.
To book a consultation in advance, call us at (337) 210-7288.