Construction Loan Draw Management

Principal workflows

• Set up the loan: Each construction loan starts with an approved budget broken into line items, the draw schedule, retainage terms and the documents required before each draw, so later requests are checked against an agreed baseline.
• Request: The borrower or contractor submits a draw request against the budget lines, with invoices, lien waivers and change orders attached, and the request is checked for completeness before anyone reviews it.
• Inspect: The inspector visits the site and records progress in the mobile app. Each photo carries its location and time, and is tied to the budget line it supports, so the percentage complete is backed by evidence.
• Approve and fund: The draw administrator reconciles the request with the inspection, applies retainage and conditions, and sends the draw for approval. Approved draws are passed to your loan or payment system for disbursement; Moraph does not hold or move funds.

Who uses it

• Construction lending departments at banks and credit unions
• Draw administrators and loan operations teams who process disbursements
• Construction and site inspectors, staff or third-party
• Credit officers and chief lending officers who answer for the construction portfolio
• Internal audit, loan review and examiners, who need evidence behind every draw

Reporting

• Draws in progress by stage, age and administrator
• Funds disbursed against budget by loan and line item
• Inspections ordered, overdue and flagged for location
• Retainage held and released by loan and contractor
• Outstanding lien waivers and title conditions
• Construction portfolio progress for credit review and the board

Features

• Line-item budgets: Each loan's budget by line, with amounts drawn, remaining, retainage held and contingency used, kept current with every approved draw and change order.
• Mobile inspection app: Inspectors work from a phone or tablet, see the lines to verify, capture photos and record percentage complete on site.
• Geo-tagged evidence: Every inspection photo carries the device's location and time, and photos taken away from the project site are flagged for the draw administrator.
• Offline capture: Inspections can be recorded where the site has no signal and are uploaded when the device reconnects, keeping the original capture time.
• Draw reconciliation: Requested amounts shown beside verified progress for each line, with differences highlighted before the draw goes for approval.
• Retainage tracking: Retainage held per line and per contractor, and its release recorded against completion and final lien waivers.
• Lien waivers and title: Conditional and unconditional lien waivers, and title update or date-down requirements, tracked as conditions on each draw.
• Change orders: Budget reallocations and change orders requested, reviewed and approved with the reason, and the budget history kept.
• Borrower portal: Borrowers and contractors submit draws, upload documents and see the status of each request without email back and forth.
• Approval limits: Draws routed to approvers by amount, loan type or exception, with a second approval when a draw departs from the inspection.
• Portfolio view: Every construction loan with its percentage complete, funds disbursed, remaining budget and days since the last draw.
• Draw history and audit trail: Who requested, inspected, reconciled and approved each draw, and when, with the evidence that supported it.

Integrations

• Loan origination and servicing: Loan, borrower and commitment details from your loan system, and approved draw amounts sent back for disbursement, mapped during implementation.
• Payment or disbursement system: Approved draws are passed to the system your institution uses to move funds, and the funding confirmation is recorded on the draw.
• Third-party inspection firms: Outside inspectors use the same mobile app under their own accounts, or upload their reports where their firm uses its own tools.
• Title and escrow: Title update and date-down results recorded as draw conditions, by upload or file exchange with the title company you use.
• Collateral monitoring: Construction progress and funds disbursed shared with Moraph's Dynamic Collateral Monitor or your own collateral system.
• Single sign-on: Staff sign in through your identity provider (SAML or OpenID Connect).
• Work API: Loan, draw and inspection data available to your data warehouse and reporting tools through the Moraph Work API.

Deployment

• Moraph cloud: Hosted and operated by Moraph in the United States region. United Kingdom and Australia regions are available for institutions outside the US.
• Dedicated environment: A single-tenant environment for institutions whose policies require isolation, scoped in the proposal.
• Mobile app: The inspection app runs on current iOS and Android phones and tablets, and can be distributed through your mobile device management.

Security and privacy

• Single sign-on: Staff sign in through your identity provider, so your password and multi-factor policies apply. Inspectors and borrowers use invited accounts with multi-factor authentication.
• Role-based access: What each person can see and do follows their role; preparing a draw is separate from approving it, and borrowers see only their own loans.
• Evidence integrity: Inspection photos keep their capture location and time, and a submitted inspection cannot be edited; corrections are recorded as new entries.
• Encryption and keys: Client data is encrypted, with keys Moraph staff cannot use without explicit, time-bound authorization.
• Complete audit trail: Every view, change, approval and export is logged with the person and time, and cannot be edited.
• Data residency: Data stays in the hosting region you choose: the United States, the United Kingdom or Australia.

Limitations

• The product does not hold, move or disburse funds. Approved draws are passed to your loan or payment system, and your staff release the money.
• Location and time come from the inspector's device. They are strong evidence that photos were taken on site, but they do not replace the inspector's professional judgment or your own controls over who inspects.
• It does not perform appraisals or evaluations, and percentage complete is the inspector's assessment, not a valuation.
• It is not a loan origination or servicing system; loan terms, interest and payments stay in your existing systems.
• Title searches and lien waivers are provided by the borrower and title company; the product tracks them as conditions but does not obtain them.
• It is designed for US construction lending practice. Lending in other countries may need different conditions and documents.
• Approval decisions remain your institution's; the product records and routes them but does not approve draws on its own.

Next steps

Book a demonstration or a technical briefing at www.moraph.com/solutions/construction-loan-draw-management. Purchasing routes and company information: www.moraph.com/how-to-buy.