1.1: Character-Based Loans

Broaden traditional underwriting used by lending institutions and incorporate "character" information, mutuality, and payment history.

Other Information:

In 2010, in partnership with Mission Asset Fund, FII launched a pilot loan program that broadened traditional underwriting used by lending institutions and incorporated "character" information, mutuality, and payment history traditionally not used by banks (rent, cell phone bills, utilities, etc.). The "character" criterion can be used by any community-based organization to underwrite a loan, based on the personal relationships and knowledge that organization might have of the families. Community members can "vouch" for a borrower, and their word has power. People who provide references that prove reliable are eligible to access resources while those that may be unreliable lose access. These components of the underwriting process reinforce the building of relationships, reputation, and trust that naturally happens in communities.

Stakeholder(s):

• Mission Asset Fund (MAF): Mission Asset Fund (MAF) is a nonprofit organization based in San Francisco. MAF is a trailblazer for creating responsible financial products and models that assist low-income families in overcoming financial exclusion, including predatory lending and lack of access to affordable credit.

Indicator(s):

Indicator:1

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