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LCS, Inc. Develops New Construction Monitoring Packages for Business Banking

Responding to the findings of a recent market study of 15 small balance mortgage lenders, LCS has developed a new Construction Monitoring Service Package for small balance or Business Banking Construction Loans.

A recurring theme of the marketing survey indicated that Lenders wanted to provide protection to their Borrowers (as well as the Bank) on Construction Loans but felt that currently available monitoring services and fees were too costly for construction loans below $3 million in value.

LCS determined that several Lenders would prefer an initial expert Plan Specification and Cost Analyses prior to closing the loan coupled with draw inspections on an as needed basis. The current status quo of monthly draw inspections was viewed as too costly on most small balance loans. Virtually every Lender was more concerned with the initial review and cost feasibility of the project, (as every lender wants to make sure that there are sufficient funds and schedule to complete the proposed construction project), and most lenders preferred the flexibility of having third party draw inspections when needed, not on a mandated schedule. The opportunity to put more control of the funding process back into the Lenders hands was welcomed by all.

The Small Business Construction Loan Program at LCS includes the following services:

• Detailed plan and specification review within 7 business days
• Detailed Cost Analysis and Recommendations
  
• Summary Report
  
• Up to 5 Draw Inspections and Progress Reports during the Construction Process
  
• Fixed Fees
  
• 3 to 5 Day Turnaround time for reports
  

The EAQuick Package includes several report types with varying degrees of data and due diligence services available to the Lender. For more information about the EAQuick Opinion Report or the other report formats found in the EAQuick Program please contact Mark V. Li Puma at LCS, Inc.

The program was Pilot Tested at a super regional lending institution in the Mid Atlantic Market with exceptional results.

Under this program, a Lender can decide to select the level of service they will require. For instance, one Lender LCS’ currently works with requires only Draw Inspections while another only retains the Plan, Spec and Cost Analysis services offered under the program.
The most attractive part of the LCS Service Package is that a Lender can decide to choose the level of service that meets both the Bank’s and client’s needs and budgets.

LCS has also "bundled" this new service package with its Environmental Services Package known as the EAQuick Program under one set fee for the Borrower and Lender.

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