The Construction screen allows users to enter in construction loan level information for a loan file. In order to access the Construction screen, ensure that the Forms & Docs > Borrower Summary > Purpose of Loan reflects Construction or Construction-Permanent.
The Construction screen will appear in the left-side navigation under Forms & Docs.
Tip: Fields indicated with a red asterisk (*) are required to be filled out.
The Construction screen will be accessible with the applicable user rights by Lender users prior to and after the final of a loan.
If the Purpose of the Loan is set to Construction or Construction Permanent then the Number of Days of Interim Interest on the GFE, Line 901 will default to Zero (0).
The Construction screen is divided into seven different sections:
The Loan Term Information section’s fields will all be manually entered in by users.
The Construction Loan Number is the MortgagebotLOS Loan Number or can be a Construction Loan Number/Identifier.
The Construction Start Date is the start date of the construction period.
The Construction Maturity Date is the date one month prior to the first payment date of the projected permanent financing previously entered on the GFE.
The First Interest Payment Date is the date one month following the estimated closing date previously entered on the GFE.
Construction Interest Rate is the rate for the construction loan term.
The Construction Term is the term of the construction period.
Construction Loan Type is a drop-down list with two loan types: Fixed Rate and ARM.
Construction Contract Date is the date of the construction contract, or if a contract is not available, then users may enter in the application date.
Construction Contract Amount is the amount of the construction cost only.
Modification Date is the date of the modification from the construction terms to permanent financing will occur.
The Construction/Construction Permanent Only section will populate based on the information, dates and figures entered on the Forms & Docs > Borrower Summary fields:
· Construction Type
· Date Lot Acquired
· Present Lot value
· Cost of Improvements/Construction Costs
· Application Date
Construction Type and Date Lot Acquired fields are open for edits unless the fields have been preciously filled in the above mentioned screen.
The Draw Information section’s fields will all be manually entered in by users.
Date of Initial Advance is the date that the borrower will withdraw their initial (first) advance.
Amount of Initial Advance is the amount the borrower will withdraw for their initial advance.
The Fee and Inspection Information section’s fields will all be manually entered in by users.
The Admin fee, if applicable, can be entered in the Admin Fee field.
The Inspection fee, if applicable, can be entered in the Inspection Fee field.
The amount of inspections completed for the property can be entered in the Number of Inspections field.
The total amount of Subsequent Draws is the amount of funds drawn following the initial (first) draw.
The Lot/Costs payoff Amount is the amount of funds needed to pay off the lot amount and any additional costs outside of the construction loan.
Users can select if Escrows are required by selecting Yes or No from the Escrow Are Required drop-down list.
Completion Number of Months is the number of months needed for the completion of the construction.
The Lock Information section’s fields will all be manually entered in by users.
Users have the ability to enter in the loan file’s Note modification Basis Points and the Extension Fee Percentage.
A Late Charge percentage can be entered in the Late Charge % field.
The Late Charge Amount can be entered in the Late Charge Amount field.
Capped Rate Expiration is the date the Capped rate selected expires.
Rate Adjustment, Capped Rate and Base Rate along with the Lock Period can be entered in for the loan file.
Tip: The fields Contractor Company, Contractor Signature and Personal Guarantors Information (First Name, Last Name, and Title) will pass to the appropriate document provider.
Contractor Company drop-down list options will populate from predefined Contractors setup by the system administrator. With the applicable user right, users will have the ability to add additional Contractor options by clicking the Edit button.
Users have the ability to add up to four contractor signatures in the Contractor Signatures fields and can include the Contractors First Name, Last Name, and Title.
Users have the ability to add up to four personal guarantor’s signatures in the Personal Guarantors fields and can include the personal guarantors First Name and Last Name. The Personal Guarantors are entered in when the construction loan borrower is a business.
Users have the ability to add up to two people’s signatures in the Authorization Draw fields and can include the First Name and Last Name. This is used to enter in those cwho are able to make draws from the construction account.
The Escrow Information section fields will all be manually entered in by users.
The Office drop-down list options will populate from predefined Escrows setup by the system administrator.
Users can manually enter in the Person, Phone Number, Loan Officer and Title. The Loan Officer will automatically fill in based on the Originator assigned to the loan however can be edited.
Users have the ability to mark three check boxes: Verify property address on ALTA Policy, Issue Endorsements CLTA No. 100 & 116 Plat Map and Issue Endorsements No. 101.
Tip: These options are not required and are only to be check if applicable to the loan file.
Save/Close will allow users to save the information entered on the screen and redirect the user to the Loan Dashboard.
Tip: After clicking Save/Close, if any of the required (*) fields have not been completed a pop up window will appear with a list of fields that need to be entered. It will also ask the user, DO you want to continue anyway? Users have the ability to select the OK button to proceed or Cancel to continue completing the screen.
Cancel will allow users to cancel all changes made, information entered, and close out the screen and redirect users to the Loan Dashboard.