Manage HBF Growth with Sustainable Processes

With increasing demand for homes and materials, it’s essential that lenders within the homebuilder finance space are prepared to manage all projects with confidence. As Built has grown, we’ve expanded our product offering with a special focus on managing growth in the homebuilder finance space. We aim to give you the efficiency to manage large volumes while maintaining compliance. As you look to scale your portfolio, ensure that your processes are working smoothly with the following questions:

  • If you were to audit 10% of your portfolio, what percentage of your loans reconcile correctly to both commitment and principal outstanding amounts?
    • How many loans within your portfolio have questions that it takes a while for your team to answer?
  • Are you actively able to proactively be notified upon the upcoming expiration of builder risk insurance, tile policies, flood zone changes, etc?
  • What is your portfolio spec to sold ratio? Are you able to manage these in real time at both the portfolio and loan agreement levels?
  • How often are you following up on trailing documents?
    • Do you feel this is being sufficiently managed?
    • What types of documentation are you following up on?
    • Do you have an automated system in place to put trackers on these types of document needs?

Collateral management is crucial for any type of construction project—make sure you’re equipped to manage every detail. The following questions will help you determine the specifics of collateral and volume management with ease:

  • Are you able to accurately identify real time sub-limitations for both active and pipeline collateral?
    • If you do have sub-limitations are you able to manage the variable limits?
      • Spec/Model/Lots not to exceed a set amount of commitments
  • Are you staying current within state regulations of releasing collateral once paid off?
    • Is this a manual tracker to follow up for partial releases?
  • What is the average time from the request of a new start to the addition of collateral?
    • Does your customer/builder have insight into the status of the new collateral request or do they have to email or phone for updates?
  • In the event of a natural disaster or market decline, how quickly can you identify all potential collateral impacts to your portfolio?
  • What percentage of your portfolio is currently aging (100% complete but not sold)?
  • How often do you find yourself leaving your collateral management software or spreadsheet to complete other tasks needed?
  • In the event of a regulatory or internal audit, how long does it take your team to get all of the above information?
    • Are daily duties affected by these short timelines?
  • Does your collateral management software or spreadsheets integrate with your core accounting system for draws, payments, loan bookings, etc.?
  • Does your customer/builder have an online experience to see into all collateral, sub-limitations, new start requests, request draws, payoffs, etc.?
  • Does your Credit Team, Relationship Management Team, Loan Administration Team or Loan Operations Team each have access in real time to look into the status of your loans and required reporting?

If you’re unsure of the answers to any of the above questions, you can talk to our team today to learn more about the Built features and functionality designed specifically to meet the needs of your HBF loans. Built is dedicated to understanding how our technology can best serve your team in order to provide a streamlined lending experience for everyone involved.

 

Topics: Construction Finance | Construction Lending