By Chastity Hosman
Construction lending is widely known as challenging, intricate and risky. While doing the deal is one thing, managing the process after the underwriting, approval, and issuance of the commitment letter is quite another. Lenders must manage so many pieces of a complicated operation, and frankly, the process can be tedious, time consuming and all out frustrating.
Working with a construction loan management service provider can greatly simplify your day-to-day procedures, ease your burdens, and potentially reduce overall expenses so when you’re searching for construction loan administration services, what are the critical components that are sure to predict your success? Two key variables make all the difference.
Before the financial crash occurred over 10 plus years ago, subject matter expertise on construction lending was plentiful and widespread. In the aftermath of the housing boom and eventual collapse, proven construction lending experience with detailed problem-solving abilities is a much more difficult skillset to find.
Construction lending presents countless known and unknown pitfalls for lenders, especially as collateral is built over time and another party (the builder) is involved. The new home environment is volatile, and the impact of underestimating various types of risks can be significant and devastating. Whether it’s vetting contractors to ensure a project doesn’t go sideways, ensuring budgets are reviewed, authenticated and validated, managing the draw inspection process, processing lien waivers, or keeping track of the endless paper trail for each report, the importance of possessing the proven experience to manage the construction loans cannot be overstated. Indeed, a higher, proven level of expertise is not just desired – it’s required.
Finding an experienced partner that you can trust is also integral in the process. Ultimately, lenders need a trusted provider that will mitigate risk, disperse and track funds appropriately, meet stringent data security and insurance standards, provide supporting services, and speed the process while making sure all the ‘i’s’ are dotted and the ‘t’s’ are crossed. It’s about having the lender’s back and taking care of business.
What’s the Solution?
With over 18 years’ experience and having processed over one million orders, Trinity believes we can help.
Our loan administration process is unique and distinctive, providing a number of key benefits:
- Offers Full Suite of Pre- and Post-Closing Solutions
- Pre-closing services, such as a Builder Information Report or a Collateral Assessment Report
- Post-closing services of loan administration, title reports, draw inspections, status inspections, and more
- Creates Efficiencies
- The Trinity team gathers all of the required documents while preserving attention to detail. All lien wavers/draw requests/permits/updated insurance/surveys/etc. are collected in one place, ultimately saving you time.
- Validates Information
- The team ensures all draw documentation includes correct information for both borrower and builders and, if needed, the subcontractors and suppliers on each draw.
- Values Your Time
- The Trinity team handles all of the required conversations with the borrower/builders. Each loan is assigned a seasoned analyst to answer questions regarding the loan and draw process and completes the required paperwork, so you don’t have to.
- Speeds Your Processes
- Trinity uses DocuSign® to electronically send, sign, manage and authorize documents from the contractor and the borrower.
- Finalizes Transactions
- Once everything is completed for a disbursement, Trinity works with the lender to ensure the disbursement package and timing is within lender guidelines.
Our goal is to simplify the process for you, mitigate your risk, and help you reach the finish line faster by providing you the expertise and trust you need for each and every loan. For more information about Trinity Loan Administration, please click here or contact us. We’d love to talk.