Blueprint for Construction Lending Growth 

Episode 38 | The Construction Lending Podcast

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Join us in this episode as Sarah Bender, Builder Relationship Manager of Mortgage Sales at BECU Home Loans, reveals her unique career path into construction lending. Discover her expert perspectives on what drives success in this sector, including key growth factors, building robust relationships with builders, successful program implementation, and how a foundation of flexibility, transparency, and a people-first approach can truly differentiate you.

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Questions Answered

• What personal and professional experiences helped prepare Sarah for the construction lending role?
• What are some best practices for maintaining clear and supportive communication throughout the construction loan process?
• Which metrics do you think are most important for measuring construction lending success, and why?
• What factors contribute to this strong word-of-mouth and referral culture?
• What is one aspect of the residential construction process you would change to improve the experience for lenders, builders, and borrowers?

Episode Recap

Building Trust in Construction Lending

From personal journeys to strategic rollouts, The Construction Lending Podcast’s Episode 38 uncovers what sets construction lending apart and offers actionable insights for lenders navigating today’s dynamic housing landscape.

Intentional Growth

In this episode, Sarah Bender, Builder Relationship Manager of Mortgage Sales at BECU Home Loans, shares her journey and a blueprint for building a sustainable, customer-centric construction lending program. This candid conversation weaves together Sarah’s unexpected career path, the practical realities of rolling out a complex financial product, and actionable best practices for lenders hoping to thrive in a changing market.

An Unlikely Journey into Construction Lending

Sarah’s route to construction lending was anything but conventional. Starting out in the mortgage industry after college, she found herself learning the ropes as a first-time homebuyer, processing FHA loans, and then moving into a loan officer position by sheer initiative. Her business relied not on cold calls, but on strong relationships and referrals—a philosophy that would become a hallmark of her career.

After a break to focus on family and a stint in education and nonprofit management, Sarah returned to the mortgage world with her unique perspective. Her experience—ranging from hands-on loan processing to teaching and building community relationships—made her the ultimate Swiss Army Knife. She credits her diverse background, not a traditional banking resume, with empowering her to fill an essential hybrid role that straddles education, relationship management, and operational innovation.

Creating a Community Construction Lending Powerhouse

Sarah describes her experience rebooting construction lending programs, and it wasn’t just about flipping a switch. It required a deep strategic review, robust education for both staff and members, and a phased, controlled rollout. These rollouts include phased internal team training, refinement of workflows, intentional external messaging, and collaboration with technology partners like Land Gorilla. This methodical approach aligned expectations, ensured airtight processes, and minimized the risk of reputational damage—a crucial concern for any community institution.

The payoff? A whopping 250% growth in construction loans over two years, driven by both market opportunity and word-of-mouth from satisfied members and builders. Importantly, Sarah notes that this growth wasn’t simply about more loans; it was about the right kind of growth—sustainable, with systems and teams able to scale the member experience without compromise.

Education, Communication, and Relationship-Building

Sarah points to several key ingredients for success in construction lending:

• 1. Rigorous Sales Team Training:
  Require mortgage sales associates to complete a construction lending boot camp and undergo regular skill refreshers. This empowers staff to answer nuanced member questions, set accurate expectations, and build trust from day one.
• 2. Creating Referral Flywheels:
  Strong builder relationships have paid off, with builders referring members after positive draw phase experiences and borrowers spreading the word about their own smooth journeys.
• 3. Transparent Communication Channels:
  Sarah encourages a “no dumb questions” culture among her teams. Issues are tackled early, preventing small errors from snowballing.
• 4. Standardized Processes, Flexibility for Members:
  From standard loan budgeting forms to tailored draw schedules, balance operational consistency with member-centric flexibility—such as allowing land value to count as equity and returning unused inspection fees.

Metrics that Matter in Construction Lending

While Net Promoter Scores (NPS) are the gold standard for member satisfaction, collecting feedback throughout the construction process, especially from builders during the draw phase is critical. Sarah believes builder experience scores are a ripe area for further development, recognizing the vital role builders play in both execution and referrals.

Sarah also discusses operational KPIs that underpin a great lending program, notably:

• Draw Processing Time: The time from request to disbursement, critical for both borrower peace-of-mind and lender profitability.
• Builder Risk Tolerance: Ensuring projects are adequately insured throughout construction.
• Stalled Progress Alerts: Identifying and addressing projects where disbursements or inspections stall, a potential red flag for completion risk.
• Deposit and Advance Tracking: Managing timing and reconciliation of upfront costs, a trend that’s grown since the COVID-era supply disruptions.

Workshops and Community Outreach

Understanding that construction lending can be intimidating for first-timers, Sarah helped developed a custom construction workshop, mirroring “first-time homebuyer” classes, but focused on the complexities of building a home. Co-branded with realtors and builders, it’s proven to attract interest and foster trust.

Builders, in particular, have embraced these workshops as tools to ease client anxiety and differentiate themselves in a competitive market. It’s a win-win for long-term relationship building.

Advice for Lenders Considering Construction Lending

With the chronic housing supply shortage, construction lending is a highly attractive venture for community financial institutions, particularly those in growing markets. However, Sarah strongly advises a phased, well-communicated rollout. This controlled expansion safeguards your reputation and allows for the development of strong internal capabilities.

Education is paramount, both for your internal teams and your borrowers, to ensure a smoother process. Your community reputation is also crucial; consistent, positive outcomes are vital in a world of instant reviews.

Sarah’s top industry change? Not regulation, but a more efficient, predictable permitting process. Inconsistencies here add significant time and cost to projects, making it a key area for joint advocacy by lenders and builders.

Playing the Long Game

Sarah’s construction lending journey is one of humility, meticulous planning, and a focus on relationships over transactions. For lenders contemplating—or already navigating—construction lending, this playbook offers invaluable lessons:

• Lean into collaboration, both within your organization and across the industry.
• Invest in education at every level.
• Build slow, with integrity and process discipline.
• Measure what matters, but never lose sight of the human experience.

Connections

Sarah Bender LinkedIn

BECU Construction Loans: https://www.becu.org/loans-and-mortgages/home-loans/construction

BECU LinkedIn: https://www.linkedin.com/company/becu/

BECU’s Youtube:  https://www.youtube.com/user/BECUVideo