Whether you are a foreign correspondent bank, a local S&L, or a potential construction lender without the need or desire to have the construction loan administration (CLA) overhead, IVI has the hands-on experience to cost effectively meet your requirements. Our professionals know the complexities of the real estate development and construction lending business and are thus able to advise you to make logical and prudent funding decisions. Foremost, we are keenly aware that the borrower is your client. We timely provide you with the required reporting and information so that you can focus on origination without the need to staff with administrative overhead and make business decisions with confidence.
 Our lender CLA services consist of:
- Monitoring and reporting monthly on the borrower and/or the borrower related-entity general contractor’s compliance with the lender’s building loan agreement (BLA) draw procedures.
- Reporting monthly on the adequacy of the BLA’s indirect and direct cost funds available to complete the project.
- Reviewing the borrower’s submitted indirect cost invoices, analyzing construction progress against the budget line items, reviewing third party construction consultant’s project status reports and construction draw recommendations, and making a recommendation for funding.
- In accordance with the BLA, re-allocate funds and budget line items to reflect the project’s buyout status and the use of direct and indirect contingency funds.
- Release funds for stored materials in accordance with the BLA’s documentation requirements.
- Submit a monthly report tracking all indirect and direct cost line items.
- Verify issuance of contractor and sub-contractor payment and performance bonds as required by lender.
- Verify payment of property taxes by borrower at each due date.
- Verify receipt of all partial waivers of lien.
- Note whether the loan is out-of-balance or heading out-of-balance.
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