Office of Assistant Secretary – Indian Affairs Loan Management System
The Loan Guarantee, Insurance, and Interest Subsidy program of the Office of Assistant Secretary – Indian Affairs (AS-IA), a part of the U.S. Department of Interior was created in response to the Indian Financing Act of 1974 for the purpose of encouraging and promoting the growth of native Indian entrepreneurship and employment. It incentivizes lenders to make loans to tribes and Indian-owned businesses that are unable to secure loans via conventional financing at reasonable terms and conditions by guaranteeing those loans up to 90%.
The program is jointly operated by personnel from two departments: the Division of Capital Investment (DCI) and the Office of Financial Management – Loan Accounting Staff (LAS). Prior to the implementation of the new system, DCI and LAS operated in silos with minimal collaboration, relying on disparate methods to review loan applications and monitor loans. The process was highly manual and dependent on decentralized, non-standardized data, which posed significant risks to data integrity and security. This created an urgent need within AS-IA to streamline loan underwriting and tracking functions in a secure environment that fostered greater collaboration between the two departments.
The Solution
BroadPoint Federal developed a centralized Loan Management System (LMS) based on the Tyler Application Platform, incorporating tailored workflows, reports, and alerts to support the program's unique requirements. The DCI and LAS teams leverage the following core capabilities to effectively manage and monitor the program:
Underwriting: Zone Managers use an automated workflow to review loan applications and submit recommendations for approval or denial.
Notifications and Alerts: Automated email notifications are triggered at key stages of the underwriting process to remind committee members of pending tasks.
Loan Monitoring: The LMS tracks annual ceilings for both guaranteed and insured loans, ensuring that no approvals exceed the allocated limits.
Loan Workouts: The system dynamically generates amortization schedules based on various loan factors, enabling Zone Managers to validate payment plans for different scenarios.
Loan Payment Monitoring: LMS maintains a continuous record of loan payments and disbursements, including premiums, interest, and late fees.
Loan Calculators: Built-in calculators assist in determining borrower payment amounts for loan payoff or catching up on missed payments by a target date.
Status Reports: The system supports program oversight through periodic reports such as the TROR, Aged Receivables, and other key performance summaries.
Benefits
AS-IA has overcome its operational challenges and achieved the following key objectives with LMS:
Improved Collaboration: Enabled seamless coordination between DCI and LAS through a centralized platform.
Standardized Processes: Replaced disparate and manual methods with consistent, streamlined workflows.
Enhanced Data Integrity: Centralized data storage and validation mechanisms have significantly reduced errors and inconsistencies.
Increased Security: Implemented secure access controls and audit trails to safeguard sensitive loan data.
Greater Efficiency: Reduced processing time for loan applications through automation and better visibility into the loan lifecycle.
Comprehensive Tracking: Enabled real-time monitoring and reporting of the statuses of guaranteed and insured loans, promoting greater program effectiveness and accountability.
Learn More
A centralized LMS, which includes tailored workflows, reports, and alerts, allows loan grantors and loan guarantors to effectively manage and monitor loan programs. To learn more about implementing a Loan Management System aligned with your requirements, contact BroadPoint Federal.