The traditional construction loan administration process requires loan administrators to manually gather portfolio data from various spreadsheets and paper files when assembling reports. Without digitization, this highly manual and inefficient process can cost credit departments days, or in some cases weeks, of valuable time, and as a result, many financial institutions only review comprehensive portfolio data when deemed completely necessary.
Put aside for a moment the high percentage of human errors found in everyday spreadsheet reporting, this lack of oversight can leave a bank vulnerable to compliance issues and unexpected risks, most of which could have easily been avoided with proper reporting and analytics.
Construction lending software allows financial institutions to leverage the growing construction market without absorbing the additional risk. Digitization provides financial institutions complete reporting capabilities and unprecedented portfolio insights, giving lenders the ability to readily access complete reports on:
- Inactive or Stale Loan Accounts: Identify potential project challenges with regular reports and automated alerts.
- Rate and Fee Variances: Identify and document loan variances to be well prepared for compliance exams.
- Upcoming Maturities and Matured Loans: Ensure each project within your construction portfolio is on schedule for completion by loan maturity date.
- Insurance Lapses: Remain aware of lapses in insurance, cancellations, changes, and/or upcoming renewals to prevent loan file exceptions and costly oversights.
- Lien Filings: Ensure your construction portfolio is properly secured by easily tracking lien filings, mortgages, trust indentures, uniform commercial code filings, and other collateral documentation.
Built’s business intelligence and data insights proactively mitigate risk by identifying key trends and risks within your portfolio that are likely impossible to recognize using a bank’s core systems alone.