CLS is the industry expert in portfolio management and fund control/draw administration. Processing and accounting for all activity relating to draws, budgets, inspections, title review and funds advances is handled thru our construction lending system. Access to the system is available 24/7, with the most up-to-date draw information. Managing the draw disbursement process allows our clients to concentrate on creating new originations opportunities. Our fund control/draw administration offerings include the following services:

Welcome Call

We provide borrower and builder construction information packages to your borrowers and contractors/builders and make welcome calls to both parties to ensure an understanding of the process.

Loan Boarding and Setup

Borrower, property, budget and vendor information is entered into our construction lending platform.

Builder Documentation and Tracking

Our on-going tracking system will track expiration of contractor's license and insurance policies while the project is being built.

Draw Documentation and Review

All supporting documentation is gathered from borrowers and contractors and is reviewed to ensure corresponding timely progress is being made. Upon review of inspection and title update/datedown reports, a draw request recommendation is made to the lender, where they can approve and disburse funds to the borrower or contractor. Review and verification of all pertinent loan documents and draw advance documentation is performed to ensure accuracy and compliance to applicable internal, lender and regulatory guidelines. Final Draw documentation is closely reviewed and verified for all required documentation submissions; such as, receipt of a certificate of occupancy, satisfactory completion certificate (Form 442), evidence of active insurance policies, etc.

Inspections

(optional service additional charges will apply)
CLS maintains a nationwide network of inspectors which act as the eyes and ears of every project we manage, verifying all work is completed per the plans, specifications and budget prior to the release of funds. CLS evaluates each inspector to confirm they have adequate construction inspection experience.
When a draw request is received by CLS, a comprehensive inspection report request is sent to the inspector to confirm the work completed. The inspector completes the report and indicates the percentage of completion per line item or stage and includes photographs. The system is integrated with our portfolio management system to allow our lenders and inspectors to view or submit reports, photographs and documentation online. Our inspectors perform on-site inspections to support each draw request to ensure that the contractor is not getting ahead of the lender.

Title Updates/Datedowns

(optional service additional charges will apply)
Collecting accurate title update or datedown information results can be frustrating when dealing with a number of small to large title companies. We have simplified this process by offering a nationwide title insurance coverage, with a centralized ordering system and 72 hours turnaround time. We offer this 24/7 service with a standardized reporting feature to facilitate the ordering and review of current title and related liens, which will help to ensure that your interest and lien position is maintained.

Lien Waivers

(optional service additional charges will apply)
Obtaining state specific lien waivers on every project can be a frustrating and time consuming process. However, you can streamline this process by selecting our Lien Waiver Collection service. We will collect, track, and review each subcontractor’s state specific lien waiver prior to disbursement of funds. Lien waiver collection is another way we can mitigate your risk through validating that sub-contractors and suppliers have been paid in full.

Billing, Remittance, Reporting and Reconciliations

(optional service additional charges may apply)
The monthly or periodic billing of all construction loans is performed through the use of our TCL construction portfolio management system. This allows the monitoring and review of all billings, receivables, payments processed and outstanding loan payment balances. For the processing of payments, this can be directly processed in our system or handled through a lockbox feature. In addition, we offer the capability of monitoring all related fees and charges at a loan level for our clients, with 24/7 access. Reporting on the portfolio throughout the construction process will help identify those developing problems that need to be addressed on a timely basis.

Rollover to Permanent

(optional service additional charges may apply)
This entails the final review of all gathered documents and setup of the loan for regular monthly principal, interest, and escrow loan payments. This will be communicated to borrower and lender and include preparation of all loan documents for transfer to portfolio or readying the loan documentation and file for the lender’s sale to investors.

Modifications

(optional service additional charges may apply)
Depending on the client’s construction loan program, the modification process may encompass the modification of the construction project term and remaining loan amortization period and/or the modification of the interest rate if a “floatdown” interest option is offered by the Lender.