Building a Culture of Collaboration in Lending

Episode 47 | The Construction Lending Podcast

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In this episode, we discuss the realities of construction lending with Marcia Fisher, Director of Mortgage Operations at UVA Community Credit Union. Marcia shares insights into transforming an operations team, the importance of strong processes, and the balance between policy and gut feeling when navigating builder vetting and risk mitigation.

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Questions Answered

• Why is a strong operations team crucial for a successful construction lending program, and how did you turn your team around?
• What is the most critical advice you would give to someone starting a new construction lending program today?
• What are some common mistakes or pitfalls to avoid when starting a construction lending program?
• Where does the majority of risk reside in a construction loan, and what measures, like contingency reserves, do you use to mitigate it?
• What are the main operational processes and best practices you’ve put in place for your construction lending program?

Operations as the Driver: How UVA Community Credit Union Created a Successful Construction Lending Program

Marcia Fisher, Director of Mortgage Operations at UVA Community Credit Union (UVACU) joins the Construction Lending Podcast. This episode is a masterclass in how to launch and optimize a construction lending program within a financial institution, told through the lens of Marcia’s personal journey and real-world experience.

From Entry-Level to Director: Marcia’s Mortgage Journey

Marcia opens the episode by sharing her roots in mortgage lending—a field she’s worked in for nearly 24 years. She explains how she climbed the ranks from post-closing roles to loan origination, and eventually into operations management. Rather than following a conventional career path, Marcia found herself constantly adapting and embracing new challenges. Her unique perspective, blending both front-end sales and back-office operations, is a recurring theme throughout the discussion. It’s this deep, end-to-end understanding that sets her apart, enabling her to bridge the often-contentious gap between sales and operations.

The Launch of Construction Lending at UVACU

A major turning point at UVA Community Credit Union was the introduction of construction lending—a product they had long referred interested members elsewhere for. This shift was catalyzed by the Senior VP, who saw the need to retain members requesting construction loans rather than sending them to competitors.

With a clear vision in place, Ballew partnered with Land Gorilla, and Marcia was tasked with building out the operational side of the new product. She candidly describes the learning curve—from her “deer in headlights” training sessions to mastering the nuances of construction lending—and how crucial it was to tap into resources like Land Gorilla, webinars, seminars, and most importantly, peer credit unions.

Gut Instinct and Builder Vetting

A recurring motif in the episode is the role of gut instinct in construction lending. Marcia explains that while processes and procedures are vital, the “gray area” still exists—particularly when vetting builders. She shares stories where her instincts made the difference between taking on or walking away from risky loans, illustrating how critical it is to trust both experience and intuition.

Surprisingly, she found many borrowers do little to no vetting of builders themselves, often relying heavily on the lender’s due diligence—a dynamic that places even greater responsibility on the credit union’s process.

Relationship Dynamics: Builder, Borrower, and Lender

Marcia discusses the evolving relationship between borrower and builder. At the start of a project—“the honeymoon phase”—everyone is eager and optimistic. But as construction progresses, stressors like delays, budget overruns, and miscommunications arise, putting the lender in a unique role as both financier and mediator. Marcia likens the initial joint meetings to “premarital counseling,” aiming to set clear expectations before any concrete is poured.

Process, Risk, and Continuous Improvement

Building strong processes—especially for builder diligence, contract review, and communication—emerges as one of Marcia’s top lessons. She notes the importance of clear, up-front conversations with both builder and borrower to establish trust and common understanding, which can help weather the inevitable bumps in the road. She urges credit unions to constantly refine their processes based on real-world experience and to invest in ongoing education and peer collaboration.

A significant challenge in construction lending, Marcia emphasizes, is managing risk—both because the collateral doesn’t exist yet and because the success of the project is so tightly linked to the builder-borrower dynamic. She is especially adamant about the value of requiring contingency reserves, even when some in the industry see it as controversial. She recounts how these reserves have saved both UVACU and borrowers from financial headaches down the line.

Advice for Getting Started

For operations leaders considering launching a construction loan program, Marcia stresses the necessity of a strong, experienced team and a willingness to learn from others in the field. She warns against underestimating the resource intensity of construction lending, particularly the need for effective vetting and ongoing communication. Ultimately, she suggests starting with building robust diligence processes, enhancing builder and contract vetting, and maintaining an open, collaborative relationship with all stakeholders..

Social Links

Marcia Fisher LinkedIn: https://www.linkedin.com/in/marcia-fisher-800b3065/

UVA Community Credit Union: https://www.uvacreditunion.org/