Case Study

Silverton Mortgage

Loan Volume Increased 333%

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We actually save money by maintaining our headcount even as we increase loan volume

Rick Scott, Director of Construction Lending, Silverton Mortgage

Product Offering:

  • Construction Loans: Single Close CTP
  • Renovation Loans

Goals:

  • Portfolio Visibility
  • Scalable Solution and Processes
  • User Friendly Software
  • Robust Billing and Servicing

Solution:

  • Construction Loan Manager Software
  • Inspection Services

Results:

  • Increased Loan Volume by 333% in the First 6 Months
  • Loan Admins Perform at a Higher Volume
  • Set the foundation for continued growth

“Silverton needed a software solution that allowed us to grow, and that made Land Gorilla the right choice for us.”

Rick Scott, Director of Construction Lending, Silverton Mortgage

The Challenge

Silverton Mortgage made a strategic decision to begin renovation and construction lending in 2018. They were starting with a blank slate: no program, no policies, no systems, no procedures, no team. The first step was to get the right person on board to develop and lead the department, and they found that person in Rick Scott, who became the Director of Construction Lending at Silverton Mortgage.

Scott has years of experience in the construction lending space at multiple institutions, all of which used their own homegrown systems to manage construction-to-perm loans. He found the experience of using home-grown systems to be lacking in many areas. “Internally built systems are very laborious,” says Scott. “While working with our internal programmers to find a solution, it became clear that they did not understand the full scope of the construction lending process. The result they delivered wasn’t what I needed for my use case,” said Scott. “This situation repeated itself in various circumstances, and in the end I was left with software that didn’t work quite right for what we needed.” With this challenge behind him, Scott foresaw that for Silverton to succeed, they must invest in a third-party solution that on-site teams can use to manage their loans.

To start laying the foundation for the new program, Scott was engaged in determining what lines of credit they were going to use, and what property types, LTV ratios, and FICO scores they would accept. Once that was established, he began writing all of the policies, procedures, documents, disclosures, construction loan agreements, and draw schedules. While that process was going on, Silverton also began looking at software systems for construction loan management. The team Scott assembled has worked on everything from spreadsheets, to homegrown systems, to vendor software providers. With experience like that, the team knew specifics of what they were looking for in a software solution for Silverton.

The most important thing they were looking for in a program was the ability to see the entire portfolio and evaluate performance easily. Says Scott, “Having been in this industry for 30 plus years, I have found that it doesn’t matter how good your pricing is, how good your program is, how high an LTV you’ll do, etc., if your portfolio doesn’t perform, it’s going to be a short-lived product. So therefore, it was very important to me to have something in place that allowed me, at any point in time and from different angles, to be able to evaluate the performance of the portfolio.” A quick yet thorough portfolio evaluation helped Scott and his team make pivotal decisions at the right time.

Secondly, they wanted a software with robust billing and servicing that could calculate interest only loans. And third, they desired a software that was user friendly. Too many of the home-grown software options in the past had been clunky, awkward to use, and were missing many features, causing Scott to create inventive work-arounds. This time he wanted to start off with a software that could support him and his team from day one.

After completing an evaluation of four different software vendors, Silverton chose Land Gorilla. “Silverton needed a software solution that allowed us to grow, and that made Land Gorilla the right choice for us,” says Scott.

The Solution

“The Construction Loan ManagerTM allows us to do a lot of our functions with less manpower,” says Scott. “In-house home grown systems cost money to build and maintain, and you don’t get something as developed as Land Gorilla. With their software, we actually save money by maintaining our headcount even as we increase loan volume. With Land Gorilla you can work more efficiently with fewer people, plain and simple.”

A software system that was user friendly was a main point for Silverton. Says Scott, “The Construction Loan Manager format follows very closely the way the transaction goes from beginning to end. From inputting the builder, to the loan, to setting up budgets and draw schedules; it’s set up so we don’t miss a beat and everything is in proper order.”

Once the loan closes and goes into the The Solution “We actually save money by maintaining our headcount even as we increase loan volume.” Rick Scott, Director of Construction Lending, Silverton Mortgage construction phase, Silverton’s construction loan administrators are 100% responsible for the loan and the relationship with the borrower and builder. Says Scott, “Our loan administrators work harder than anyone else. It’s their relationship with the builder and borrower. They are responsible for managing change orders, tracking the progress of the loan, and they are alerted if the project goes too long without an inspection or a draw, and all of this management is significantly easier on the Construction Loan Manager.”

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