2012 ONAC Conference

1. 2012 ONAC Conference

2. Osage Financial Resources, Inc. • Ryan Malone – Development Services Coordinator • OFR is a 501(c)3 Non-Profit Organization and Native CDFI that assists residents of Osage and surrounding counties with; asset building, credit restoration, classes on home purchases, financial education and various loans.

3. What is a CDFI? • CDFI is defined as a financial institution that: has a primary mission of community development, serves a target market, is a financing entity, provides development services, remains accountable to its community, and is a non-governmental entity. • CDFIs are certified by the Community Development Financial Institutions Fund (CDFI Fund) at the U.S. Department of the Treasury, which provides funds to CDFIs through a variety of programs.

4. OFR Programs Home and Home Improvement Loans – Any purchase or improvement towards a home. Credit Builder Loans – For participants looking to establish or improve their credit score. Down Payment and Post-Secondary IDA – Participants will save earned income and receive a match, according to the ratio set by OFR, for Down Payment assistance on a home or assistance for college or Vocational school. • Participants must qualify for any program according to our income guidelines.

5. OFR Income Guidelines • Household Size—Max Household Income 80% Income120% Income 1—$35,950 $43,140 2—$41,050 $49,260 3—$46,200 $55,440 4—$51,350 $61,620 5—$55,450 $66,540 6—$59,600 $71,520 7—$63,700 $76,440 8—$67,800 $81,360

6. Credit Builder Loans • OFR’s Credit Builder Loan program is targeted for those that are trying to establish or rebuild their credit score. • The Credit Builder Loan is a 6 month loan of up to $500 and with this loan OFR targets debt on a credit report and automatically pays on that debt. • This with 6 months of on-time payments will help increase the participant(s) credit score. • OFR is members with Credit Builders Alliance and we report our monthly payments to them and they report to Trans Union and Experian credit reporting agencies. • Requirements for the loan are: • 18 years or older • Must be a resident of Osage County or surrounding counties (Kay, Noble, Pawnee, Tulsa, and Washington) • Employer or Employee payroll deduction are the main manners of payment, but applicants will be looked at on a case-by-case basis. • In the event that Employer payroll deduction cannot be performed, then the applicant must have a Cosigner. The Cosigner must have a credit score of at least 550. • Debt-to-Income ratio must be at or under 50% • Participants must qualify under OFR’s income guidelines.

7. Credit Builder Loan process • Participant will fill out a CB loan application • Consists of loan application, information disclosure authorization form, verification of employment form, and payroll deduction form. Also will need to provide household income information and total debt for 1 month. • First, will confirm if payroll deduction can be performed, if not then OFR staff will look at application and decide the next course of action. • Schedule a time for participant to come in for a 1 hour financial education class. • Class consists of going over their debt-to-income ratio, going over credit and spending habits education material, and viewing a credit building video. • Also OFR will perform a credit pull and receive your credit score and report and will target items that might be on your credit report that will be paid on or off. • Once this is completed then all the information is gathered and the OFR staff will decide to accept or deny the loan. • If denied then participant will receive a letter or call explaining the reasons of denial