Eight Construction Loan Monitoring Reports That Crush Risk

Posted by Tim Ryan on 6/13/18 11:29 AM

There’s a four-letter word we hate to hear in the construction lending space. The word is RISK and, like an evil force that encourages unintentional oversight, it threatens progress and compliance throughout the construction loan administration process .

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Topics: Construction Loan Management, Construction Loan Management Software

Contract Simply Uncovers $40 Billion of Excess Costs in Construction Industry

Posted by Tim Ryan on 6/6/18 4:09 PM

General Contractors are familiar with the risks associated with liens. More often than not, subcontractors file them to ensure payment for invoiced work. It's a regular part of doing business, but liens are a costly and potentially time-consuming risk for builders and lenders .

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Topics: Trends in Construction Loan Software, Draw Application Processing, Construction Loan Management

Case Study: Manual Construction Loan Process Leads to Undocumented Draw

Posted by Seth Snyder on 5/23/18 11:23 AM

The phone rings. It’s your accountant telling you that your bank overpaid a construction draw by almost $50,000 and the bank had no record of this payment on the amortization schedule. What do you do with this money? That is precisely the decision a Doctor had to make with two months left until completion on the renovation of a recently purchased medical building for her new branch. Let’s break it down to see how a manual construction loan process can lead to errors like this and why it needs to be a relic of the past.

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Topics: Construction Loan Administration, Construction Loan Management Case Studies

Example of Machine Learning in Banking and Construction Loan Management

Posted by Tim Ryan on 5/22/18 12:35 PM

In this example, a bank, let’s call them First Federal, is a commercial construction lender with a $500M portfolio. They manage dozens of loans and the deluge of administrative tasks related to draw requests. For example, within a single draw disbursement request submitted to First Federal, a general contractor pulls together 100's of legal and compliance-related documents including lien releases, invoices, the AIA G702, the AIA G703, receipts, change orders, inspection reports, approvals, and more. Each draw request requires the approval of several parties including but not limited to the loan administrator, third party inspector, title company, and other loan participants. The entire process applies to individual loans as well as an entire portfolio of loans and is core to construction loan management. 

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Topics: Construction Loan Software, Machine Learning in Banking, Construction Loan Management

Will Mitchell Presents Construction Payments Study Findings to The Society for Construction Solutions

Posted by Tim Ryan on 5/21/18 11:26 AM

Contract Simply CEO Will Mitchell recently presented preliminary findings from the Contract Simply First Annual Construction Payments Report as the keynote for the Society for Construction Solutions (SCS) at the Capital Factory in Austin, TX.

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Topics: Construction Loan Management

Three Loan Servicing Challenges and Process Automation Solutions

Posted by Tim Ryan on 5/11/18 10:11 AM

We recently attended the American Banker-hosted webcast Addressing Market Needs for Business Process Automation. The focal point of the panel discussion revolved around research conducted by Dana Jackson, Vice President of Research at SourceMedia and Canon U.S.A. They captured data from 300 loan servicing managers and executives. The insights from the study impact lenders including those curious about automation and machine learning in banking and loan servicing.

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Topics: Machine Learning in Banking, Construction Loan Management, Loan Servicing

How Construction Loan Software Fast Tracks the Construction Draw Process

Posted by Contract Simply on 5/9/18 1:50 PM

In the modern world, there is no more need for borrowers to wait months for their draw requests to move through the construction draw process before receiving payment. Just as there is no need for construction loan manager at the bank to lose sleep over handling the paperwork and monitoring the ins and outs of construction loan management. Construction loan software fast tracks much of the work currently done manually.

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Topics: Construction Loan Software, Construction Draw Process

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Helpful Resources

Contract Simply Construction Payments Report 2018

Contract Simply Kickstart Guide to Construction Loan Software

Will Mitchell talks construction lending and borrowing on Medium

Contract Simply Infographic on Construction Loan Administration

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