Cash on January 1, 2027$275K
Forecast, before any new money
Raised$700KBuilt the core team and the program’s legal documents
January 2027 target$1.0MAdditional seed funding
February 2027 target$1.3MCompletes the $3.0M round
Contracts funded each month, 2027
By pilot credit union, $100K average contract. Point at or tap a month for its detail.
Cash flow, month by month
Through
How this plan is built
Volume
Three pilot credit unions launch in February, May and August 2027. Each ramps up over 10 months, working a growing share of the members it declines for debt-to-income (DTI); 30% of the files worked fund. 2027 is held to $50M, 500 contracts at a $100K average, the size of the starter funding facility. DTI declines come from 2025 HMDA data on credit union home equity applications denied for debt-to-income.
After 2027
The program phases up to its target of 50 funded contracts for every 100 DTI declines, a little each month across 2028, instead of switching on January 1. Eight more credit unions join in 2028, twelve in 2029 and eight in 2030, and DTI declines grow 8.1% a year.
Revenue
$1,299 per funded file; a 1.5% yearly management fee on open contracts’ cash advances, paid quarterly; and a disposition fee of 3 points (3% of the cash advance) at closing. Out of the 1.5%, 0.30% a year goes to the credit union for quarterly check-ins and 0.25% to the subservicer (at least $4,000 a month); both show as costs.
Costs
The 2027 operating budget, with 24% taxes and benefits on salaries. Staff grows with volume: a credit reviewer for every 60 funded files a month, intake staff for every 250 files worked, an enablement manager for every 5 credit unions. From 2028, finance, compliance and security roles join, and pay rises 3.5% a year.
Cash
$275K on hand on January 1, 2027, the forecast before any new money. Additional seed funding of $1.0M in January and $1.3M in February completes the $3.0M round. Type a different amount into any month of the Cash flow table to see the effect.
Planning estimates built on the assumptions above, not a promise of results.
How the 2027 ramp works
2028 and later: phasing up to the target
2027 is held to $50M, the size of the starter funding facility. To stay inside it, each pilot at full speed works 74 of every 100 members it declines for debt-to-income, and 30 of every 100 files worked fund. That is about 22 funded contracts for every 100 DTI declines.
Once funding stops being the limit, the plan’s target is 50 for every 100: every DTI decline worked, and half of them funded.
The plan doesn’t switch to that target overnight. A larger facility, more staff and each credit union’s own process take time to build, so the step-up is spread evenly across 2028. Each month the share of declines worked rises a little, from 74 toward 100 of every 100, and so does the share that funds, from 30 toward 50. The target is reached in December 2028 and holds from there.
Every credit union that joins from 2028 ramps up over its first 10 months, as the pilots do in 2027. Eight join in 2028, twelve in 2029 and eight in 2030. DTI declines grow 8.1% a year from 2028, the national pace from 2023 to 2025.