Construction loans have long been described as a “mixed bag.” While these short-term loans typically produce higher profits and yield great returns, the construction loan process can be challenging. Financing a structure that doesn’t yet exist is inherently risky because so many factors can be outside a lender’s control, including project delays, contractor issues, legal and permitting concerns, and construction material availability.
Most lenders use draw inspections as a best practice to validate construction progress before disbursement of funds. While many small banks use independent inspectors in conjunction with the draw process, larger financial institutions with broad portfolios can benefit from hiring a nationwide draw inspection company for a number of specific reasons:
1. Greater Risk Mitigation
A national firm with broad risk mitigating policies and extensive insurance (E&O, CGL, WC, Cyber, Theft, Fidelity, Excess) ensures parameters are in place to protect lenders’ interests. Ultimately, less risk equals more successful completion of construction lending projects, and national inspection companies have the means to define and analyze potential risks while also providing underlying insurance in the case of mistakes or errors.
2. Broad Expertise
Lenders have access to multiple experts with decades of experience in residential and commercial projects, all able to understand the intricacies of the industry and identify any pitfalls. Trinity utilizes a team of former home builders who review inspection data and photos on each order and validate every inspection.
3. Quality Control
A national firm maintains a panel of thousands of independent field inspectors allowing for multiple inspectors in a location from which to select. Trinity’s database of over 10,000 independent field inspectors is strengthened by our Risk Management team, staffed with former builders to assist the local inspector, using a proven process, which is designed to deliver accurate results quickly and reliably.
4. Simplicity and Accountability Through a Single Point of Contact
For questions or changes, lenders often prefer a single point of contact regardless where the project is located. Trinity provides a dedicated account team member to serve as the lender’s advocate throughout the inspection process. If any issues arise, this trusted individual is ready to resolve it quickly, providing a seamless, consistent, professional experience while establishing the confidence needed to ensure all crucial elements of the construction process are reviewed and inspected thoroughly.
5. SOC 2® Compliance
In today’s world, data privacy is a fundamental right, and business data must be guarded and kept secure. A SOC 2® audit assures the security of information to banks and lending organizations because it requires service providers prove data is transmitted and stored securely and confidentiality. All of the steps to become a SOC 2 attested service provider are long and arduous and require an investment of both time and money. Trinity is fully committed to the process with a Compliance Department, staffed by a full-time compliance manager and licensed attorney who completes all of Trinity’s third-party assessments, manages the SOC 2 audits, and ensures continuous data security.
To learn more Trinity, schedule a meeting. We’d love to talk with you!