One of the main concerns of many lenders in today’s construction lending market is reducing risk in their construction portfolios. CLS has developed a variety of services that reduce lender risk on construction loans, both prior to and after closing. Construction lenders who utilize our services will obtain a deeper understanding of their portfolio, while minimizing their risk profile through portfolio risk analysis, builder and project reviews, title updates, lien waivers, inspections, customized reporting tools and fund control.

Portfolio Risk Analysis

We offer a review of your current portfolio of construction loans. This review will enable us to develop a portfolio analysis, identify risk and strategies to enhance the day to day management of your portfolio life cycle.

Builder Review

Lenders go to great lengths to verify information on the people borrowing their funds. However, they neglect to verify information on one of the most important individuals in the construction lending process, the builder. The builder is the one actually building your assets and CLS provides a complete review of the builder’s data which enables you to make a complete and informed credit decision.

Prior to loan closing, a review and assessment of the builder application information is performed to determine if a contractor is qualified and credit-worthy to build the project. This service continues after closing by an on-going tracking system, which will track expiration of contractor's license and insurance policies while the project is being built.

Project Review

Lenders use appraisers to certify the value of the property during the approval process of a construction loan. However, they tend to overlook validating the figures provided by the builder. CLS validates these figures prior to closing which helps lenders, borrowers and builders to avoid budget shortages before they ever happen.

A comprehensive project review will be performed to compare the plans and specifications of house to the contract, budget and appraisal information. This process will encompass a determination of the feasibility of the project, review key construction factors and stages of project, and review the cost estimation of projects versus proposed budget based on market value.

Title Updates/Datedowns

Collecting accurate title update or datedown information results can be frustrating when dealing with a number of 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

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.

Inspections

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 inspection 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. CLS’s success is dependent upon the timeliness, quality and professionalism of our inspectors. Therefore CLS approved inspectors must commit to a 24-48 hour turn-around time for every inspection.

Customized Reporting

CLS has a wide array of construction lending reports that are customizable to meet your needs. These reports will help identify current and potential problem areas that standard servicing platforms are not equip to handle. This service is offered as an option when you utilize our fund control/draw administration service.

Fund Control

CLS is the industry expert in construction lending 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 software 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.

Statutory Compliance/Mechanics' Lien

Statutory Compliance is an extremely complicated set of laws because it varies from state to state across the nation. The CLS team has 20 years of experience with the intricacies of these laws and provides you with the most current information on mechanics' lien law nationwide. We understand the statutory compliance documentation that is required in each state in order to manage your risk and ensure your projects are built clear of mechanics' liens.

Nationwide Inspection Audit Service

CLS will review your inspectors to ensure compliance with your polices and procedures.