FUNDS CONTROL
Eliminate over-disbursement risk
Funds Control (also known as third party draw distribution) adds an additional layer of lender controls for complex residential and commercial projects. We approve and fund draw requests on the lender’s behalf, but take full liability for any over-disbursement. Because we are on the hook, we apply the highest standard of analysis to each draw request.
What does Funds Control include?
- Needs Analysis with Lender
Initial meeting to understand lender’s specific project concerns and needs
- Builder Acceptance Validation
Holistic review of builder including credit history, customer reviews, construction competency, licensing, referrals, legal entity, court proceedings and criminal history
- Legal Review of Construction Contract
Attorney performed review of the construction contract along with markups and recommendations
- Insurance Validation
Initial and recurring validation of loss payee and limits for surety bond, commercial liability, and builders risk insurance
- Early Start Site Inspection
Pre-close site inspection to verify construction has not begun prior to closing
- Builder and Borrower Correspondence
Fielding draw requests and scheduling inspections
- Draw Schedule Normalization and Maintenance
Conversion of builders scheduled cost to AIA or lender’s prefered form including draw request and funding updates
- Lien Waiver and Invoice / Receipt Collection
Collection and packaging of executed lien waivers and project invoices pertaining to builders’ draw requests
- Down Date & Completion Endorsements
Requests for owner policy endorsements to protect against recorded liens
- Draw Inspections
Physical inspection of jobsite and documents evidencing work completed and stored material
- Draw Approval / Modification / Rejection
Draw approval or modification following field inspection and document review
- Direct or Joint Check Funding
Funding for draw request directly to contractors, sub-contractors, and/or suppliers
- Funding Reimbursement Reports
Field inspection and funding report for lender’s approval
- Lender Updates
Lender correspondence and project updates at preferred cadence
- Final Draw Reimbursement Package
All pertinent inspection and draw documentation for lender review before final reimbursement
- Web accessible secure file directory
Secure cloud repository available for lender to access reports and other pertinent project documentation