The Premier Builder Relationship Management Solution

• Introduction
• Proven Performance
• Features of CLM
• Key Safeguards
• Benefits to Builders
• Benefits to Banks
• Implementation and Customer Support
• How does your bank process construction loans?

Would you like to substantially increase your construction loan portfolio without increasing the staff that administers construction loans and tends builder relationships?

Are you interested in a tool that will enable your bank to:

• Simultaneously administer the entire budgeting, disbursement, balancing and posting process for hundreds of active construction loans using just one employee
• Continuously analyze constant budget vs. actual during the life of an active construction loan
• Completely control the construction disbursement and inspection process

If you bank is not processing construction loans this way, you need Construction Loan Manager (CLM), the software that gives you complete control over the construction loan cycle, satisfying builders, Boards of Directors, and examiners.  CLM reduces your risk, increases your efficiency and improves service to your customers.

Proven Performance (back to top)

CLM was introduced in 1987 by Lowenstein and Associates, PC, a leader in the banking software industry.  Designed by CPAs for accounting personnel, CLM incorporates stringent internal accounting controls to monitor the construction and payout process.  Since 1987, CLM has evolved into the most comprehensive and easy-to-use PC-based construction lending program available on the market.  No other system gives you a clearer picture of your success in the industry.

Features of CLM (back to top)

CLM provides key controls over construction loan servicing, controls not inherent in most systems. These controls include:

Key Safeguards Built in to CLM (back to top)

With CLM, the constant budget vs. actual budget analysis occurs during the life of the construction loan.

Two vital controls, in particular, safeguard your construction loans:

1. An established budget.  Expenditures for each line item are determined before the builder submits bills to be paid.  Your bank can see if the builder is on budget, every step of the way.  You can also project, over the life of a loan, where the budget will be at the finish.  CLM even sets up a budget for timely payment of interest through automatic deductions.
2. A physical inspection that is tied to the disbursement process.  CLM monitors inspection records to compare completed construction phases to actual percentages paid out.

These key safeguards give your bank unprecedented control over the construction disbursement and inspection process.  You can now identify problems before they occur.  CLM alerts you if a budget overrun is about to happen or if the actual construction process does not occur as quickly as the disbursement process, saving you time and money and preventing risk.

Benefits of CLM to Builders (back to top)

Your builder customers will realize multiple benefits from your bank's implementation of CLM:

• 1099 reporting.  Eliminate builders' 1099 reporting since CLM can electronically post 1099-MISC transactions to your core processing system or directly to the IRS
• Draw sheets.  Do away with manually generating draw sheets, since CLM generates them for you.
• Quick payment to subcontractors.  Prevent lag time on payments, since CLM cuts checks fast, making one-day service the norm.
• Job analysis and bookkeeping.  Provide builders with job analysis, bookkeeping and historical information.  Help them while you help your bank.

Benefits such as quick payment and accurate reporting are why builders fully endorse the CLM system.  You will foster loyalty and generate repeat business at a lower cost from builder customers who have been well served.

Benefits of CLM to Banks (back to top)

Banks that currently use CLM report that one person can administer hundreds of loans at a time.  They not only realize up to ten-fold increases in productivity, but also an increase in customers.  With CLM, you will be able to increase your construction loan portfolio substantially using your existing staff.  Other benefits you will enjoy include:

• Electronic posting to your core processing system.  With CLM, you eliminate duplicate keying on manual posting to your core processing system.  Each transaction is automatically posted for you.  Balancing and daily recap reports quickly isolate posting errors.
• Accurate builder performance history.  CLM takes the guesswork out of management decisions and offers you concrete data to review past builder peformance as a basis for future lending options.  You'll never again be indecisive about construction lending choices.
• Robust reporting capabilities.  CLM's management reporting tools leave no stone unturned in monitoring and managing your construction portfolio.  Some reports are designed to inform upper management and the board from a broad perspective, while some are exception indicators that "red flag" potential high-level problems with a builder, type of construction project, particular subdivision, insurance expirations, projects slow to complete, or numerous other situations common with the construction lending business.

In addition to builders and bankers, examiners value the strong internal controls during the disbursement process.  Boards of Directors and stockholders appreciate the amplified loan capacity, as well as the way CLM forecasts budget overruns before they occur.

Implementation and Customer Support (back to top)

The CLM implementation process is detailed and comprehensive.  It begins with Lowenstein and Associates personnel interviewing all of your institution's staff who are involved in construction loan portfolio management and processing.  A test environment is then established for loading and testing the CLM software with your bank's core processing system.  Following this is a bank staff training session using your construction loan data.  With testing and training completed, the next 30 days of implementation allow time for any necessary adjustments and custom programming.

Once you're up and running, Lowenstein and Associates provide full product feature/functionality support and maintain the core system-to-CLM data integration process.

Contact us for an online, real-time demonstration.

Name:

Business Name:

Email:

Phone:

Fax:

Comment:

Submit