CFSI Loan Management

Do You Have A Construction Project Requiring Oversight?

CFSI offers full-service, independent, construction risk mitigation services supporting lenders and private individuals nationwide.  We manage the entire fund control process throughout the entire construction phase for existing portfolios or assist in building new portfolios to ensure on-time completion, to closely monitor the budget  and to make certain the project is free of mechanic’s liens.

Our in-house, client dedicated team works within lender established standards and hold state-specific risk management expertise.  We offer web-based budget and draw status, meticulous inspections and closely monitor contractors.

Construction Loan Management Services

Pre-Loan Approval

• Contractor Profile Review
• Project Feasibility
• Cost-to-Complete Analysis

At the start of the construction process is where a lender needs evaluation experience the most. Most lenders are going through the motions of collecting documentation relating to the project and the borrower financial data to evaluate the credit risk. Many times we see a less diligent amount of time focusing on the contractor who will build the project, and much less time evaluating if the project can even be completed for the price in the contract or the loan you are providing. Where will that extra money come from? The borrower? Do they have enough funds? Will it impact their reserves? Did they select the low bid, leaving the project busted from the beginning? You can’t fix a bad project unless you let CFSI help mitigate the risk with the project prior to the loan funding.

Loan Funding

• Funds Disbursement
• Draw Inspections
• Status Inspections

CFSI’s Fund Control process takes the tracking and worry out of the lenders hands. We load the budget and all appropriate line items from the contractor, and we keep the project balanced and in compliance with your loan and disbursement schedule provided to the borrower. By working with CFSI you and your borrower get world-class customer service during the construction phase and reporting on project status along the way. We tell you when the project is slowing down, we alert you when the contractor is moving budget line items around (which may impact value), we collect line releases and invoices to ensure the subs are being paid, and your project is free of mechanic’s liens. Each time a request for a draw is received we send a qualified inspector, from our National Inspection Network, to the property and provide a line-by-line percent-complete project draw recommendation with a full set of photos for you for review and funding. Anything less than full compliance to your guidelines is discussed with the borrower, contractor, or lender based on the communication matrix set by the client.

Portfolio Auditing / Due Diligence

CFSI Loan Management can audit and review construction loan programs/portfolios for adherence to industry best practices on Project Review, Contractor Profile, and Funds Disbursements.  CFSI can also audit for any issues related to loan maturity, project completion variance, inspection variance, loan delinquency, and more.  CFSI completes a comprehensive Portfolio Audit Report allowing any issues to be addressed and corrected.