For many borrowers, efficiency and speed is everything. As soon as they discover your services are not up to speed with their needs, they mentally remove your name from their list of go-to construction lenders. Being able to move efficiently and on time is a big deal in this industry. Therefore, it is very important that you constantly take feedback from your clients seriously, and use it to formulate questions that will help in auditing your process, just like BUILT did.
Here are some of the questions BUILT got:
- If you had to carry out an audit on your portfolio, what percentage of loans would comply?
- Is this percentage lower or higher than 10%?
- What happens to the loans you weren’t able to reconcile properly?
- What percentage of your loans would require fees refunded to the customer?
- Have you lost money in fee waivers? How much in total?
- Do you have extensions as an option?
- How many times have you had to activate an extension?
- What percentage of your portfolio represents projects that have been funded greater than the percentage completed?
- Do you do credit checks on active constructors? When was the last time you did this?
- In your portfolio, is there any case of a project in which the contractor’s risk insurance expired before the project could be completed?
- Could you increase your turn time? Do you think that could earn you more interest income?
Data is beautiful, and with data that can be easily accessed like this, you (and your team if you work with one) can make informed decisions using data.
If you want to know more about how to audit your process as a lender, click here.
About Note Servicing Center
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid.
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