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August 2023 » thefivestar.com 41 August 2023 F E A T U R E when relying on traditional, spreadsheet- based methods of managing construction loans, can be an almost herculean task. Lenders that wish to take advantage of the growing opportunity that construction loans represent must find new ways to effectively manage the origination process and provide a seamless experience for their borrowers. Thankfully, a new breed of construction loan technology has emerged that can help lenders easily overcome these challenges while better serving borrowers and their builder partners. New end-to-end software is available that enables originators to digitize the entire construction loan process, includ- ing inspections and disbursements. And a growing number of lenders are now using these platforms to drastically reduce their draw turn times and empower their teams to work more efficiently while creating a more streamlined experience for everyone. As just one example, Portland, Oregon- based Pacific NW Federal Credit Union recently used such technology to virtually eliminate all the manual work and staff hours spent processing draw requests by hand. In fact, the credit union was recently able to reduce its average draw times from 10 to 12 days to just two days, according to Diane Calvin, Pacific NW Federal's SVP and Chief Lending Officer. The new platform now serves as Pacific NW Federal's system of record for all con- struction loans, allowing staff members to view and manage every aspect of a construc- tion project in one place. Builders love it, too, since the platform is equipped with mobile and web apps that enable builders to fill out and submit draw requests online—instead of by email—and receive an instant notification when funds are approved. "What has really helped us is showing our builders that we improved their process, give them time back, support them, which in turn we receive more member referrals," Calvin said. It bears mentioning that technology can also help lenders stay compliant in an environment where the rules are constantly changing. With the right technology partner, lenders looking to sell construction loans can also access additional tools and resources, in- cluding worksheets that enable them to bet- ter define actual construction costs and best practices for meeting GSE selling guidelines. At the end of the day, there's very little any lender can do to control the ups and downs of the housing market. But they can certainly invest in new technology to make it faster and easier for borrowers to get the financing they need. And with the gates start- ing to swing open and new home construc- tion beginning to take off, and with many sidelined buyers coming back to the market, there's no better time to do so than now. WATCH AT CONVERSATIONS.QCALLY.COM HOW TO MANAGE RESOURCES IN A TIME OF SCARCITY VARIABLE VS FIXED COSTS Hear from SoFi's Head of Mortgage Operations, Kim Hoffman, and QC Ally's Chief Executive Officer, Nicole Booth, as they discuss how to reduce origination costs while maintaining compliance Kim Hoffman, SoFi Head of Mortgage Operations Nicole Booth, CEO at QC Ally