Indymac Bank
Showcases Construction Lending Programs
When it comes to construction lending, Indymac Bank believes that the borrower, bank, builder and architect should literally be working on the same page. In our case, this same page consists of multiple line items that, when checked, submitted and verified by an independent inspector, make it possible to keep construction funds flowing smoothly and the project moving steadily toward completion. Average time of disbursement is an amazing 1.4 days.
Rich Hildebrand, Loan Officer at Indymac Bank (Photo by Bruce Schneider)
This streamlined process is Indymac's online disbursement system, a triumph of simplicity owing less to technology than to a commonsense approach to helping borrowers and builders get their projects completed on time and on budget. When the builder completes a project segment, he or she informs the borrower who enters the appropriate costs online and submits the updated line item cost breakdown for payment by Indymac. If required, an inspector, in turn, inspects the work and validates completion of the requested cost or line items. Requested funds are then wired to the appropriate account.
By releasing funds to the borrower, Indymac provides the borrower another important financial safeguard and one more control for overseeing each step of the construction process. Because the complete disbursement process is transparent to borrowers and builders alike, there should never be any question or dispute over the release of payment. In addition, because every step of the process can be tracked online, there's no need for follow-up phone calls, faxes, invoices and voicemails to slow down the process. Requests for payment can be processed and disbursed within 48 hours of request.
Paid contractors are also motivated contractors, who are more likely to keep their crews on the job and see the construction project through completion. Moreover, once they see how quickly they are paid through the Indymac online disbursement system, the issue of who actually pays them becomes moot.
For borrowers, however, they feel as if they are always at the center of their project instead of on its fringes. The online disbursement system gives borrowers an open window on all phases of their project. The bottom line: A more knowledgeable, informed and confident borrower makes for a better building partner. In an independent survey, 9 out of 10 customers said they would recommend Indymac Bank's Home Construction Lending programs to friends and family.*
That recommendation also was based on programs such as construction-to-permanent, bridge and lot/land loans, as well as loans for remodel and rehab. We also offer modular home financing, disbursing up to 75% of the initial package up front. That amount is significant because many banks only provide 10% to 20% - often an insufficient amount to start building a modular home in the factory. With modular financing, the funding moves more quickly, so more money is required at the onset to get the project out of the starting blocks.
"The importance of providing excellent loan programs to our home construction customers goes hand in hand with ensuring we deliver on our commitment to provide service and support that are an industry benchmark for excellence," said Steve Majerus, Regional President, Indymac Bank Retail Lending Group - West. "As a nationwide lender, Indymac is well known for providing streamlined origination, approval and servicing processes, along with a companywide commitment to deliver high-touch, personalized service. The company's innovative technologies were developed with a customer-centric focus, enabling Indymac to deliver unparalleled products and services that meet the exacting demands of today's and tomorrow's home construction marketplace."
For further information about our unique online disbursement system or any of our Indymac Home Construction Lending programs in the Bay Area, call Rich Hildebrand at (925) 918-0494 or contact him via e-mail at rich.hildebrand@imb.com
*Survey of Indymac Bank Home Construction Lending customers conducted by third-party vendor.
Our mission is to make thoughtful, sustainable buildings accessible to all, so we have developed pre-packaged solutions to make it easy for people to go green. We have found Indymac Bank to have the same philosophy, which makes them a valuable partner. - Michelle Kaufmann Designs
November 2007 Builder Architect Edition Issue