Frequently Asked Questions
- How does DownHome Loan Manager fit with community lending?
- Is this software a Windows or DOS-based program?
- Is DLM powerful enough to manage large loan portfolios, with multiple loan funds?
- Will DLM produce billing statements?
- What kind of management reports will DLM produce?
- Will DLM produce amortization schedules?
- How does DLM compute interest?
- Will it accommodate multiple disbursements?
- Will DLM handle a line of credit?
- How about changing the terms of a loan?
- Will DLM keep track of demographic data on borrowers?
- What software program was used to develop DLM?
- Will DownHome Loan Manager run on Windows XP?
- Do we need to purchase additional software to run DLM?
- What are the system requirements for running DownHome Loan Manager?
- How about networking? Will DLM operate on a multi-user network?
- Can DLM be customized?
- What kind of technical support do you offer?
- Can we try before we buy?
1. How does DownHome Loan Manager fit with community lending?
First and foremost, DownHome Loan Manager (DLM) was designed for community lenders. Whether your agency operates a single microloan fund or multiple portfolios serving a variety of community development purposes, DLM will help you keep track of your overall portfolio and adjust to your needs as you grow.
Many of DLM's features were developed to meet agency reporting requirements. In DLM, loan accounts are identified by funds (e.g., by SBA, EDA, USDA, private funds, etc.) to make it easy for you to prepare reports to government, foundation, or private funders. In addition to monitoring loan accounts, DLM keeps demographic data on your borrowers, so you can demonstrate that your program is reaching your target audiences.
DLM is a flexible system that accommodates the non-standard repayment schedules and adjustable terms that some alternative
financing deals require. DLM makes it as easy as possible to change loan terms “on the fly” for scheduled loan transitions.
Adjustments for workouts can also be made as these circumstances arise.
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2. Is this software a Windows or DOS-based program?
DownHome Loan Manager is a true Windows system (Windows XP/95/98/NT or 2000). It offers the familiar look and feel of Windows, with the point-and-click interface you've come to expect. It is easy to navigate between edit screens. Reports and statements are available at the click of a mouse.
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3. Is DLM powerful enough to manage large loan portfolios, with multiple loan funds?
Yes. DLM is a robust, full-featured relational database system, with a very large data storage capacity. DLM can easily store tens of thousands of record transactions, well beyond the requirements of most community-based agencies.
DLM expands with your agency as well. The software lets you add new loan programs as you grow. Since you can query the
database by loan fund, DLM gives you the flexibility to report back to each funding agency according to the schedule
they require. A single borrower may have one or several loans, which can originate from different loan programs in your
overall portfolio. DLM offers many automatic payment transaction functions to match the payment crediting options you need.
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4. Will DLM produce billing statements?
Yes. All editions of DownHome Loan Manager come with a complete billing component. DLM produces monthly statements designed to be used with window envelopes for easy mailing. Each billing statement is printed with detailed information about the status of the loan account so your borrowers knows precisely where they stand. This information includes: the due date, minimum monthly payment amount, total past due, and any fees that have been assessed. Past due amounts are broken out by 30-day delinquency increments. A box also displays the date and amount of the borrower's last payment, detailing how it was credited to fees, interest and principal. A payoff balance is also displayed.
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5. What kind of management reports will DLM produce?
DLM offers a wide variety of reports that will keep you on top of your loan accounts and help you report back to funders in a timely manner. Some examples:
- Current Portfolio status:
Want to know the status of all of your loan accounts right now? With a click of a mouse, you can display or print a report summarizing all accounts by loan fund, detailing each borrower's current balances, delinquency information, when their last payment was made, the amount of their last payment, etc. - Quarterly reports:
Do your funders require you to report back to them on the performance of your loan funds each quarter? Semi-annually? Annually? DLM's transaction summary reports can be printed out by loan fund and date range. These reports show how much money you've lent during a time period you specify, how much you've received in borrower repayments, and what portions have been credited to fees, interest, and principal. And since you can ask for one or all of your funds, you can restrict your reports to the exact set of data you need.
6. Will DLM produce amortization schedules?
Yes. DownHome Loan Manager will create amortization schedules that detail a borrower's month-by-month payment schedule, broken out by interest and principal portions. Amortization schedules may be viewed or printed. The amortization scheduler will also allow the user to test various “what if” scenarios by hypothetically changing the terms of an existing loan.
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7. How does DLM compute interest?
DLM's Select Edition offers multiple formulas for calculating interest. You can pick and choose, loan by loan, whether to follow simple (daily) interest computed on a 365-day year or on a 360-day year. You may also choose a fixed monthly calculation method (approximating a fixed monthly amortization schedule).
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8. Will it accommodate multiple disbursements?
Yes. DLM easily handles multiple loan disbursements. Simply post them when such transactions are made and DLM will take care of the daily interest details.
Example: Let's assume you set DLM to follow a daily (simple interest) formula, based on a 365-day year. If you disburse
additional funds to the borrower in the middle of a payment cycle, DLM will accrue the interest due according to the number
of days the borrower has used the smaller balance, then will calculate daily interest from the disbursal date based on the
higher balance.
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9. Will DLM handle a line of credit?
Yes, as in the example above, DLM will properly update a loan account when multiple disbursements are made. You may set whatever minimum payment requirements are called for by your loan agreement (for example: no monthly payment, minimum level payments, interest-only payments, etc.).
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10. How about changing the terms of a loan?
DLM easily handles loan term changes, whether these be interest rate changes, term extensions, or changes in the monthly payment requirements. DLM is designed so you can change the terms of a loan “on the fly” to accommodate non-standard repayment schedules, variable terms, workouts, etc. Simply change the terms as required by the loan agreement.
Example: Let's say you need to structure a loan so that only interest-only payments are required for the first three
months, followed thereafter by full payments amortized over the remaining life of the loan. In this case, you will define
the loan terms in DLM to match the terms that apply at the beginning of the loan (e.g., set the minimum payment to equal
the interest-only payment amount). Then, at the end of the initial 3-month period, simply re-set the minimum payment to
the larger amount. DLM will post payment transactions according to whatever terms you specify. DLM also has a built-in
tickler system to remind you of upcoming loan term changes (and any other matters you want DLM to alert you to).
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11. Will DLM keep track of demographic data on borrowers?
Yes. DLM includes data fields for key demographic information that you are likely to be required to report to federal or foundation sources. Key fields include information about individual clients such as ethnicity, gender, Vet status, whether they reside in an Empowerment Zone or Enterprise Community, etc. Fields are also provided for business data, including business status, size, SIC codes, etc.
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12. What software program was used to develop DLM?
DownHome Loan Manager is built on Paradox® for Windows, a robust relational database management system. Originally developed by Borland International, Paradox is now produced by the Corel Corporation. The first versions of DownHome Loan Manager were built on Paradox for Windows, version 7. The latest version of DLM (3.0) employs Paradox for Windows, version 10, which offers an even wider range of development features.
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13. Will DownHome Loan Manager run on Windows XP?
Yes. DownHome Loan Manager runs on all the latest versions of Windows, including Windows XP (both Home and Professional editions). The added stability of XP makes this an ideal operating system for DLM. Windows 2000 is also an ideal platform for running DLM.
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14. Do we need to purchase additional software to run DLM?
No. You will not need to purchase any additional software (assuming you already have a Windows operating system). DLM is distributed with a runtime version of Paradox for Windows, which is licensed to you as part of the DownHome Loan Manager software application.
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15. What are the system requirements for running DownHome Loan Manager?
System requirements can be summarized as follows:
- Operating system: Microsoft Windows®. DownHome Loan Manager is a true 32-bit Windows program, so it requires Windows to run (Windows 95/98/ME/NT/XP/2000). DLM will not run on Windows 3.1.
- Network operating system: For its multi-user network versions, DLM will operate on a variety of popular network operating systems. The following are fully supported: Microsoft 2003 Server, 2000 Server, NT server, Novell. DownHome Loan Manager may also be set up on a peer-to-peer network (in which several PCs share files without the use of a dedicated server). DLM may also be configured for remote access through Microsoft terminal services, Citrix, etc.
- Minimum memory (RAM): 32 MB minimum. 128 MB or more preferred.
- Disk space: 20 MB for the program. Disk space for data tables will vary depending on amount of data records to be stored.
16. How about networking? Will DLM operate on a multi-user network?
Yes. DLM is available in a network version. The network version allows the data to be housed centrally while users may access the database from multiple workstations. DLM's robust network controls operate in the background to monitor record posting and updating. Network security can be controlled through password protection so that only authorized users may use the database.
Furthermore, a system administrator may assign variable access rights to individual users. For example, one user may be
given full editing rights while another may be assigned read-only rights, allowing them to view account information and
print reports, but not change the data itself.
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17. Can DLM be customized?
Yes. DownHome Solutions frequently builds custom features into its software systems to meet the unique requirements of its clients. DownHome Solutions will work with clients to identify the specific development project on a case by case basis.
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18. What kind of technical support do you offer?
DownHome Solutions offers an annual technical support contract to accompany the purchase of a software license for DownHome Loan Manager. A technical support contract includes tech support on demand and telephone training for clients. Importantly, a service contract also includes the cost for software upgrades. The cost for a standard annual technical support contract is approximately 20% of the client's licensed system. Take a look at our Technical Support Contract.
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19. Can we try before we buy?
Yes. A fully-operational DEMO of the DownHome Loan Manager software is available (at no charge). The demo will permit a limited number of transaction entries, but will give you ample opportunity to put DLM through its paces. Once you have installed the demo, DownHome Solutions will also be glad to provide a telephone tutorial to acquaint you with the software. To order a demo, fill out our online form.
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