Borrman Consulting LLC 

If the lender’s expertise does not include construction industry experience, is it appropriate to place the inspection responsibility on the officer?  Does an in-house inspection process ensure that the construction project stays on budget and that the bank’s position is protected throughout the construction period? 

• Mattias Borrman carries two professional designations from the Association of Construction Inspectors (ACI): Certified Construction Inspector (CCI) and Certified Construction Consultant (CCC)
• Borrman Consulting LLC has completed over 35,000 residential and commercial inspections for twenty four different financial institutions over the last ten years.
• Accumulated experience at Borrman Consulting LLC includes construction estimating, design, hand-on trades and construction finance with draw processing.
• Borrman Consulting LLC stays current with industry developments through trade publications and research in addition to on-site discussions with installers.

The interaction between lenders and borrowers is valuable from a business perspective and Loan Officer visits to construction sites makes the borrower feel that the bank is invested in the project on a level past the loan closing, which builds the relationship.  The lender who underwrites the loan and is responsible for the credit performance will also gain insight by visiting the construction project and talking with the builder and/or borrower. 

But what happens to the relationship if the lender disagrees with the builder in regards to the status of the project and it turns out the lender did not fully understand the techniques or systems involved?  What happens if the inspecting lender simply takes the borrowers word because of a lack of understanding of construction terminology or quantification?  How well is your bank protected?

By engaging a third party inspector your bank will enhance both the credit control process and the relationship between loan officers and their clients.  The contracted inspection service should not take the place of the lender's visits but rather compliment and improve the existing process.  Finally, when the lender visits the project the focus can be on building the relationship with the borrower and not on being “the inspector”.

Loan Officers' time is valuable and frequent site visits to inspect the construction loan portfolio in order to verify completed work for the draw requests are not conducive to meeting production goals and time management.  Invariably, the draw inspections happen (or should happen) on the builder's schedule and not the lender's, which interrupts many days’ productive work in order to satisfy a need that is better filled by an independent inspector.  With regularly scheduled, contracted inspections in place, the Loan Officers can visit the projects on their own schedule. 

A reliable and accurate construction inspection report provided on a regular and predictable schedule streamlines and makes uniform the process in your organization by eliminating the differences in loan officers’ methods and timing for completing inspections.  When the time comes for internal or external loan reviews, our reports add credibility to your due diligence process.