Press Release (ePRNews.com) - SEATTLE - Sep 26, 2017 - To address the needs of the homebuilder industry, Direct Lending Group is pleased to announce an industry leading Express Doc Prime Builder Lending Platform with unparalleled pricing and ease of execution. We have significantly reduced the documentation required by eliminating tax returns and financial statements and streamlined due diligence & draw administration process which allows for significant indirect administration costs savings. Pricing has been reduced to as low as 4.25% to incentivize new relationships and to reduce direct borrowing costs.
“Finally technology is making inroads into streamlining the approach to builder financing. Homebuilding is a capital intensive business and expanding credit and reducing direct and indirect costs is going to be more important as the current building cycle matures to offset higher input costs. We are pleased to announce that we are eliminating some documentation requirements such as tax returns and eliminating global debt service coverage requirements. Expanding homebuilder access to credit is important in our industry to meet the affordability challenges of housing markets constrained by low inventory” said Ross Fiuzi, President of Direct Lending Group.
The builder finance industry has been resistant to innovation and change. Builder loans are very documentation intensive and the underwriting process is manual process requiring tax returns. Using our third-party data providers, we can use alternative documentation such as IRS transcripts in lieu of tax returns and verify assets using our third party asset authentication platform. The indirect manpower costs and constraints supplying financial documentation to lenders has been a constant challenge to an industry that has resources and manpower constrained to meet operational needs.
We have also eliminated global debt service coverage ratio calculation and qualification. This secondary source of repayment analysis has traditionally been a constraining factor for many builders trying to ramp up financing as they grow into a building cycle. “As we approach the late stages of the current cycle where more lenders will fill their balance sheets, builders and developers gsnm should look to diversify their borrowing base to lower direct and indirect costs and manage counter party risk lest a funding shortfall hit their pipeline which could delay or disrupt their projects”, added Fiuzi.
Located in Seattle, Washington, Direct Lending Group is full service lender and advisory firm for commercial and residential financing for all phases of the real estate life cycle specializing in debt and equity at all levels of the real estate capital stack with an emphasis in Builder Finance. Residential lending is also an area of practice with an expertise on jumbo lending for high net worth individuals with complex financial proifiles who oftentimes acquire and own real estate vested in entities.
For more information on this press release contact:
firstname.lastname@example.org Source :
Direct Lending Group