Centralization of workflow is key for an optimal construction management technology
By: Bishal Thapa
Effectively managing the complexities of construction loans can be challenging for lenders and servicers. Whether you are tracking all sources and uses of funds, reconciling your budgets, managing inspections, or reporting on the project, a real-time, automated technology solution is critical for success.
According to Jones Lang LaSalle’s Construction Report, “developers spent $296 billion on commercial construction across all asset classes in 2016, a near four percent increase over the prior year.” Given the volume of activity in the space, lenders and servicers must leverage technology that provides inter-connectivity between the status of the project, it’s financing, draw due diligence, and compliance.
The right technology system:
- Manages complex construction projects from beginning to end
- Provides full surveillance and tracks the entire project budget, including all sources of funds (e.g. principal from the loan, borrower’s equity, etc.)
- Tracks all activities associated with construction loans (e.g. draw schedules, disbursement history, holdbacks, budgets)
- Administers construction loan draws (including proper signing authority) that are processed according to loan policy
- Creates construction loan workflow and checklists; generates necessary reports and documentation
Through the centralization of workflow that supports the lending and servicing of construction loans, Precision LM from SS&C provides lenders with a complete picture of a project, from beginning to end in a real-time and automated manner.
Its technology facilitates the ability to originate and administer complex construction loans, including workflow and processing. It’s integrated contact management system records and tracks information on all parties involved in the project.
The construction module within the technology provides users full control over the project budget, including equity and other sources of funds so the lender always has a complete picture of the budget.
Our end-to-end solution also has a built-in reporting module with out-of-the-box customizable construction loan reports that include coverage for budget, inspections, expenses, and reserves.
SS&C Precision LM™ is widely used by more than 70 financial institutions globally, including leading commercial real estate lenders and servicers, mortgage REITs, agency lenders, banks, non-banks, and insurance companies.
To learn how SS&C can help you meet your loan management challenges, email Bishal Thapa or call +1-212-659-4495.