Gerente Proyectos

1. Institutional lending -NO lends to a financial institution.
Definition.
Direct Financing involves a program strategy through which loans are issued directly to intermediaries comprised by financial institutions which assign loans to families seeking financial access to housing solutions. Such intermediaries pay interest over the capital loaned and generally assume the entire risk.Procedures, Policies and Tools

Step 1: Opportunities Assessment
Begins with a visit to the potential partner in order to present the program and establish an introductory relationship. At this stage, one determines the degree of interest of the institution in partnering with HFH’s housing microcredit program for home improvements.
Institutional Acknowledgement
During the field visit, thefollowing information should be provided about the organization and project to be financed:

1. Identification of main funders in the market;
2. Legal status or company name
3. Geographic and market scope;
4. Understanding of HFH mission and vision;
5. Foundation Date.

Note: The Opportunities Assessment stage must be contextualized within the framework of HFH’s geographicscope (focalization). Elaborating an inventory of any potential partners within this focus area is also recommended.

Pre-analysis of Potential Partner Institutions
Once the interest of the potential partner has been determined, a Preliminary Financial Report of the MFI must be drafted by HFH to determine the feasibility of furthering the relationship. The Report is used as a tool to assess thedegree of risk associated in placing 2nd tier funds with the potential partner.
The following stages should be exhausted prior to making a decision about continuing the next steps on the lending process:
a. Inputs:
Checklist of information to request for preliminary analysis of the institution:
* Audited financial statements (signed) for the past 3 years
* Financial statements forthe current period
* Portfolio at risk report, description of its portfolio and customers, number and type of credit products extended.
* Statistics reflecting the number of credit officers, employees, active number of customers and portfolio size (number and amount), number of new customers per year and existence of savings account among customers, savings amount, number of totalcustomers, number of female customers, number of branches. Last 3 years.
* Write off report, restructured credits, loan provision. Last 3 years.
* Organizational Chart
* Description of management staff (training, experience, time in the organization, previous employment).
* List of financial liabilities (amount, source, conditions, total time period and expiration date).
* Rating(International or national score)
* Annual report

b. Procedure:
* Entering financial information into the processing tool (TBD, could be Frametool or other self-developed tool) to generate financial and portfolio indicators of the MFI.
* Using the “Valuation Tool”, filling the inside table to compile and evaluate governance and mission alignment and financial situation:* Complete the “Lender Comments Column” and analyze the available information.

* Draft a Preliminary Financial Report using the following example as a practical guide:


Note: If you require additional support for this process, please contact LAC OA.
c. Outputs/Decisions:
* Based on the available information and Preliminary Final Report, HFH will make a decision as to thefeasibility of furthering a relationship with the MFI (potential partner). If the decision is to continue the relationship proceeds to STEP 2. If not, communicate your decision not to proceed with the MFI.
Prepare and present indicative sheet.
As part of the initial steps, includes a formal communication, to the recipient institution, of terms and conditions offer by Habitat for Humanity. This...