ISGN Corporation announced a construction lending services and technology solution alliance between ISGN’s TCL product and Granite Loan Management (GLM). This new alliance offers a one-stop enterprise solution that leverages the synergies and best practices of two leaders in residential and commercial construction loan management.
Through this alliance, ISGN will leverage Granite’s Construction Lending Risk Mitigation System and RenovationReady with its TCL construction loan servicing software. Lenders will now have access to key risk management services when used with TCL, which will streamline the lending process and provide significant enhancements to construction or renovation loan risk for commercial CRE, SBA and consumer residential construction lending. Key features and services will include:
►Construction Project and Budget Oversight; Project and Contractor Underwriting; 50 State Mechanics Lien Administration; Draw Management and Check Processing; Project and Risk Management Reporting; Financial Accounting; Renovation Loan Origination and Fulfillment; and Loan Servicing/Administration.
►ISGN’s end-to-end TCL platform simplifies and automates the management of all residential and commercial loans, including acquisition and development (A&D) loans, lot loans and 203K loans, as well as borrowing base and tiered pricing loans. TCL provides a comprehensive, real-time view of loan portfolios and day-to-day operations including disbursements, budgets, property inspections and document tracking, reducing data error and duplication. Lenders that leverage TCL can offer alternative financing programs, process and administer competitive and flexible programs for loans, and track borrower relationships and complex lines of credit.
►Granite’s RMS service is designed to reduce or eliminate the additional elements of construction risk such as budget shortfalls, contractor inexperience, change orders, mechanics lien administration and inspector performance, according to Granite Companies Chairman Rick Nirk. Through its turn-key model of inspect, qualify and certify, RenovationReady provides bankers and mortgage professionals the ability to originate renovation lending on an economical basis for FHA 203K and Fannie Mae Programs. Services include customer lead generation, loan fulfillment and risk management throughout the renovation process.
“At GLM, our goal is to provide products and services that enable lenders to enter the lucrative construction or renovation lending market, without the cost of developing an expensive infrastructure,” said GLM Marketing Executive Penny Roach. “By marrying our risk mitigation expertise with ISGN’s robust construction loan software, lenders now have a one-stop-shop solution to successfully manage their construction lending portfolios effectively and efficiently.”
According to the U.S. Census Bureau of the Department of Commerce, construction spending is on the rise, estimated at a seasonally adjusted rate of $885.1 billion.
“Builders are more optimistic about the future, with their sales outlook for the next six months increasing to the highest level since 2007," said Paul Imura, chief marketing officer of ISGN. "Additionally, payrolls at construction companies have grown by the thousands since late 2012, making our partnership with Granite highly relevant. With these current market conditions, we are well positioned to provide a superior construction loan servicing platform to help lending institutions sustain profitability.”