Construction Loan Servicing & Management
This state-of-the-art module provides the necessary functionality to successfully service and manage residential and commercial construction loans. It fully automates the entire construction loan lifecycle from acquisition and development through construction. And it works in concert with the Loan Origination, Loan Servicing, ACH Express and Trust Accounting modules of The Mortgage Office™ suite of products.

Managing construction loans is an involved and labor-intensive process. Now there is an efficient, affordable and easy-to-use solution to help you mitigate the risks commonly associated with servicing construction loans while at the same time providing the flexibility to increase your servicing portfolio without additional overhead costs. The system operates in real-time giving you complete flexibility in controlling disbursements, billing interest and loan charges, tracking site inspections, funding commitments and posting borrower payments at any time.

The following list is just a brief description of some of the features available in this new module:

• Comprehensive, easy-to-use system to manage any type of construction loan
• Fully automated finance charge assessment and billing process
• Supports variable and fixed rate loans, interest-only and graduated terms
• Unlimited number of user defined budget accounts and groups
• Easily import similar budgets from other loans
• Fully automated lender participation accounting and distribution of funds
• Quickly schedule and track property inspections
• Fully integrated with the Trust Accounting module
• Flexible disbursements with line item budgeting
• Disburse funds via EFT/ACH, computer-generated check or manual check
• Easily spot actual or potential cost overruns
• Assess finance charges and generate billing statements in a single step
• Quickly and effortlessly void, reverse or delete any transaction
• Produce year-end 1098 and 1099-INT tax statements or file magnetically
• Flexible billing cycles and ability to asses finance charges based on daily, average, lowest or highest balance for period
• Loans can be incrementally funded with unlimited number of funding sources or lenders
• Ensure availability of funds with complete tracking and reporting of commitments
• Easily place a hold on all or part of a budget line
• Enforce and monitor holdbacks
• Track disbursements vs. percent completed
• Track disbursements vs. budget
• Automated transaction and loan funding fees
• Maintain contractor information
• Periodic account maintenance fees can be automatically assessed
• Complete and detail history of fundings, billings, disbursements and borrower payments
• Attractive, detailed and easy-to-understand borrower billing statement
• Produce a borrower statement of account at any time
• Spot potential cash shortages with the cash flow projection report

Control Disbursements. Disbursements can be directed to the borrower, contractors, vendors or any combination thereof, and paid by computer-generated check, manual check or paid via an electronic fund transfer (ACH). The system also tracks holdback amounts and holds placed on all or part of a budget line item. Funds can be advanced to a fund control account or directly, as voucher and invoices are submitted for payment.

Project & Billing Information. Informative and easy-to-use data entry forms allow you to setup a construction loan's project information and billing terms in a few quick steps. The system allows the administrations of an array of different types of loans including fixed rate, interest-only, graduated payments and adjustable rate mortgages.

Manage Budget Accounts & Groups. Fully user-defined, project budgets can be as detailed as needed with an unlimited number of budget groups and accounts. When setting up a new construction loan, you may use the import budget assistant to easily copy an existing budget from another loan.

Process Incremental Funding with Ease. The loan funding assistant will guide you through the necessary steps of processing additional loan funds. For those of you that originate and service construction loans with the added complexity of multiple funding sources, the loan funding assistant will accurately calculate and prorate interest payments taking into account any number of mid-period funding from one or more lenders.

Assess Finance Charges. Construction lending requires periodic and accurate assessment of finance charges. The system supports multiple billing cycles and per-loan flexible billing terms. A complete billing history is maintained for each loan and billing errors can be easily reversed.

Generate Borrower Billing Statements. Provide better service to your borrowers and avoid unnecessary billing questions by producing accurate and easy-to-understand statements. These multi-section statements can be generated at any time showing the account's activity for the period and complete finance charge computation detail.

Track Fund Commitments. For many companies, the matching of available funds to timely disbursements is critical, and if not managed properly could create cash flow deficiencies in a project. The funds commitment tracking module ensures that funds are available when needed.

Management Reports. Participate in the high-profit construction lending market with confidence. The Mortgage Office Construction Lending module is easy-to-use and enables you to reduce the risks associated with construction lending while at the same time improving customer service. To service construction loans you need accurate and timely information. The system allows you to generate informative management reports at any time.