The average profit on each loan originated in 2020 was up significantly compared to the average profit in 2019. Construction loan automation streamlines the loan process, resulting in quicker turnaround.
“Independent mortgage banks and mortgage subsidiaries of chartered banks made an average profit of $4,202 on each loan they originated in 2020, up from $1,470 per loan in 2019, according to the Mortgage Bankers Association’s (MBA) Annual Mortgage Bankers Performance Report.”
What this means for Lenders
What does this mean for lenders? Increasing draw fee income is on everyone’s mind. Bankers are turning to new technology like construction loan automation to do just that. Construct is an online tool helping banks streamline their construction lending process, and borrowers love using it. It’s a great way to differentiate your bank for the competition.
Bank leaders around the country are getting behind loan automation tools like Construct as a way to increase their interest fee income. By speeding up the process, lenders are saving days on their loan cycles, resulting in higher margins.
How Construct Helps
What else can loan automation tools do for you? Lenders are finding that staff has a greater capacity to take on more loans with Construct, because so many of the tedious steps are taken out of the equation for them. Instead of 100 projects, some lenders are able to now handle 250 projects using Construct. As the construction sector bounces back from Covid, more companies will be looking for loans. In fact, demand for newly constructed housing is on the rise too. This is great news for lenders looking to increase their project portofolio.
Construct takes the spreadsheets out of the lending process and sends users real time alerts. When an inspection is done, you automatically get notified and can complete the next steps from anywhere, right from your phone, in minutes.