First Federal Bank

Draws Processed 80% Faster

More Loan Visibility 24/7 Access

Utilizing Land Gorilla’s Construction Loan Manager has proven to cut the time of the full draw process.

“We were looking for a company that would allow us to give our customers, borrower and builder alike, the white-glove service”

Karen Stone, Assistant Vice President, Residential Lending Construction
Manager at First Federal Bank

Product Offering:

  • 500+ Construction-to-Permanent Loans:
    Conventional, FHA and VA

Goals:

  • Exceptional customer experience
  • Replace manual processes with a digital solution
  • Disperse draws faster

Solution:

  • Land Gorilla’s Construction Loan Manager™ software

Results:

  • Draws processed 80% faster
  • More loan visibility for borrowers and builders with 24/7 access

The Challenge

Prior to Land Gorilla, managing constructionto- permanent loans was a very manual process. A construction specialist would be able to service 40 – 45 loans and all draw documents were maintained in a physical construction draw file folder.

At closing, loans were manually boarded to the servicing platform. Inspections were ordered by the builder by phone or email. The construction specialist would in turn email the inspector. The appraisal, draw schedule, contract, plans, and specs, along with directions on how to contact the builder to gain access to the property, would be emailed to the inspector for an initial inspection.

Then, the construction specialist prepared an email to the builder listing all documents required for the draw.

When the completed inspection and supporting photos were emailed to the specialist, they reviewed the draw request for accuracy by comparing the photos, then calculated the percentage completed for that inspection. Both borrower and builder lien affidavits were prepared and emailed to the respective parties. Upon receipt of the executed affidavits, the wire or check was processed and disbursed to the builder. The specialist then processed the transaction financially in the servicing system. Draws were disbursed once all documents were received. This manual process typically took 5 days.

The Solution

“We wanted to eliminate our manual process and move to a system-based process to alleviate the potential for keying and calculation errors”

said Karen Stone, Assistant Vice President, Residential Lending Construction Manager at First Federal Bank. “We were also looking for a way to minimize emails and faxing of documents between all parties involved (appraiser, inspection, specialist, borrower, and builder) that would cut the process down to a minimum. Instead of inspections being turned to draw in 4 – 5 days we were looking for 2 days.”

In order to thoroughly evaluate all options, a team was formed within the residential lending department to gather information via conferences/demonstrations. The team met with representatives of at least five vendors. The process in total spanned for almost a year.

First Federal is customer-centric and is known for the outstanding service they provide. Being able to maintain this level of customer service was a very important consideration when selecting a solution.

“Our corporate culture is taken very seriously,” said Stone. “Everyone at First Federal lives the corporate culture. No joke. We were looking for a company that would allow us to give our customers, borrower and builder alike, the white-glove service they have come to expect.”

After this extensive search was complete, First Federal Bank selected Land Gorilla.

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