Every lender is looking to cut cost and increase efficiency. The smart lenders are turning to technology to achieve this goal. For example, PrimeLending, a national residential mortgage lender, has implemented ISGN’s TCL product, a software system developed specifically for servicing residential and commercial construction loans. Here’s why PrimeLending made this decision:
According to the Federal Deposit Insurance Corp., both residential and commercial construction loan volume is rebounding after a steep decline. A recent article in The Wall Street Journal cited that outstanding loans totaled nearly $45.7 billion in the first quarter – up 4.5 percent from the fourth quarter – marking the fourth consecutive quarterly gain for construction lending to home builders.
As a result of this increased construction lending demand, PrimeLending will leverage TCL to better manage residential construction loans from one streamlined, automated and configurable system, allowing control of the end-to-end management of the entire loan lifecycle.
“U.S. home construction has recently showed signs of improvement and growth,” said Kale Salmans, senior vice president of Construction and Renovation for PrimeLending. “This prompted us to invest in ISGN’s TCL platform to better manage the increased demand in residential construction loans while allowing us to become more efficient. With this technology in place, our loan originators have the ability to increase their home loan pipelines.”
“The U.S. construction lending industry is seeing a slow but steady recovery, with McGraw Hill Construction projecting total U.S. construction starts to rise by nine percent in 2014 to $555.3 billion,” said Paul Imura, chief marketing officer of ISGN. “In response, lenders like PrimeLending are investing in technology like our TCL, indicating a strong need for automated end-to-end construction loan servicing software to better manage the increased demand in construction loans.”
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at email@example.com.