Dave,
The thing about holding off can be quite devastating to your program. We
were not able to fund loans for a 4 month period. The results, we had to
jump start our program again, which is still taking an effort 9 months
later. Loans continued to default due to the economy and its many issues
and we had no dollar amounts for funded loans, which the defaulted dollars
use to create your default %'s . When you lend out no dollar and $3000
default in a month, your default rate for the month is 0%. But of if this
continues for a few months and you run a report that covers a few months
defaulted dollars will calculate against funded loan dollars resulted in a
high over all default rate.
My Jan 03 - March 03 is as follows
Jan 03 2 loans funded $5576 1 loan defaulted $1794.49 default rate 32.20%
Feb 03 0 loans funded $0.00 1 loan defaulted $ 291.72 default rate 0%
Mar 03 0 loans funded $0.00 3 loan defaulted $5879.57 default rate 0%
Jan through Mar 03 report
2 loans funded $5576 5 loan defaulted $9154.38 default
rate 142.80%
It is better to review and analyze your portfolio while remaining in
business and funding loans. The most important thing is start your analysis
to quickly find your trends. This will result in loans being made
statistically verses judgmentally. You will be making better loans. The
analysis is an ongoing thing, which can lead to new trends due too the
economy or geography and demographics of your area. You should note that
variances will arise too, which at first appear few but could result in an
ongoing trend. If so analyze many things, perhaps marketing, perhaps types
of loans, perhaps limits, perhaps education, perhaps new partnerships,
perhaps scoring and weighting and perhaps procedure, policy and finally
eligibility.
Monitoring your current portfolio lets you clearly see impacts and
deficiencies and strengths.
Good luck.
-----Original Message-----
From: Dave Washburn [mailto:[EMAIL PROTECTED]
Sent: Wednesday, February 04, 2004 1:43 PM
To: Robin Seemann
Subject: RE: [WTW] [WtW] delinquency: proactive measures
Hi Robin,
Of course I had you in mind for the analysis part of my e-mail to the
listserve.
Did you write a report on your analysis which details how you analyzed the
delinquencies & defaults, as well as shows the results? If so, could you
share it with me?
Thanks,
Dave
ph. 808-532-3939
fax 808-532-3930
-----Original Message-----
From: Robin Seemann [mailto:[EMAIL PROTECTED]
Sent: Wednesday, February 04, 2004 5:12 AM
To: [EMAIL PROTECTED]
Subject: FW: [WTW] [WtW] delinquency: proactive measures
-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]
On Behalf Of [EMAIL PROTECTED]
Sent: Wednesday, February 04, 2004 9:23 AM
To: [EMAIL PROTECTED]
Cc: [EMAIL PROTECTED]
Subject: RE: [WTW] [WtW] delinquency: proactive measures
Hello Dave:
Great idea. What we are doing in Detroit is to identify those
"characteristics" or pattern of "characteristics" among those folks who
default so that we can then begin to develop a profile that we will review
quarterly as part of our quality indicator process (CQI). We will also
compare this data against the loan eligibility criteria and review that
also.
Michelle Rowser
Ways to Work Detroit
> -----Original Message-----
> From: Dave Washburn [SMTP:[EMAIL PROTECTED]
> Sent: Tuesday, February 03, 2004 5:15 PM
> To: [EMAIL PROTECTED]
> Subject: [WTW] delinquency: proactive measures
>
> Dear colleagues,
>
> I'd like to develop procedures to correct defaults/delinquencies
> before they get to our maximum tolerance of 15%. I'm thinking some
> kind of corrective
> actions- beyond regular collections -should be scheduled if the
> default rate gets up to and beyond 11%.
>
> My current ideas:
> * Perform analysis of defaulted customers to ID "red flags" that may
> not have been noticed during loan review.
> * Meet with loan review committee for decision on corrective action to
> be taken.
> * Schedule time (1-4 weeks) to freeze new loan activity (no new loans,
> no
> interviews) to concentrate on corrective action and collections.
>
> What do you do that has proven to be successful?
>
> Please add to or comment on my brainstormed bullets, above.
>
> Thanks,
>
> Dave Washburn
> Consuelo Foundation
> Honolulu
