Land Gorilla
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Land Gorilla makes construction lending safe and hassle-free with our cloud-based construction loan management software and services.
These changes to ‘fixed-price’ contracts now act more like ‘cost-plus’ contracts where the homeowner/borrower is assuming the risk of rising materials costs. The benefit of this type of agreement is twofold: first, it provides confirmation that the builder understands the borrowers obligations to the lender, and second, it expedites the contract review process and prevents any hidden covenants that could impact the completion of the project, including rising material cost stipulations. A construction loan agreement that requires the borrower to provide all change orders to the lender for acceptance prior to making the change allows the lender to review the impact to the collateral before the work starts. During the final draw, the borrower can request any remaining contingency funds be reimbursed or applied to the principal of the loan, depending on the terms of the Promissory Note and Construction Loan Agreement Rising construction costs impact all parties and a good understanding of the construction loan agreement is essential to the success of a construction lending program.
From 2.2 trillion dollars of originated refi business in 2020, they have estimated it will drop to 1.2 trillion dollars in 2021. Freddie Mac’s data shows 50 million millennials could create new households, and these millennials are mortgage ready. With this in mind, Freddie Mac is estimating that the 1.2 trillion dollars in purchase volume we saw in 2020 will rise by 16% to 1.4 trillion dollars in purchase volume in 2021. In a panel webinar with Freddie Mac, MGIC, and our own expert here at Land Gorilla, we asked them to weigh-in on their best purchase-centric strategies lenders can implement in 2021.
From 2.2 trillion dollars of originated refi business in 2020, they have estimated it will drop to 1.2 trillion dollars in 2021. Freddie Mac’s data shows 50 million millennials could create new households, and these millennials are mortgage ready. With this in mind, Freddie Mac is estimating that the 1.2 trillion dollars in purchase volume we saw in 2020 will rise by 16% to 1.4 trillion dollars in purchase volume in 2021. In a panel webinar with Freddie Mac, MGIC, and our own expert here at Land Gorilla, we asked them to weigh-in on their best purchase-centric strategies lenders can implement in 2021.
This means draw administrators are key to the health and risk mitigation of the loan programs and are important and valuable to the company who wants strong construction and renovation loan offerings. For lenders looking to grow their draw administration teams, and as an ode to awesome draw administrators that we get to work with, we have compiled a list from construction and renovation loan administrators who regularly meet their Service Level Agreements. For example, if the goal is to decrease time between the first and last draws, the admin can begin reporting on time between draws and how long the draw process takes from submittal to cash out. For example, the team could have goals to measure the amount of loans they manage per month, a goal to touch a certain amount of loan files every day, or a goal to reply to emails, deliver paperwork, or process draws or change orders within a specific amount of time.