Construction Loan Administration (CLA) is responsible for reviewing both new and renewal candidates for inclusion on the accepted builders list. The general process is outlined below, however there may be variations in some cases based on the facts that are present.

For a builder to be considered for approval by CLA, do the following:

1. Obtain the following from the builder:
   1. Completed and signed Builder Data Sheet.
   2. Proof of insurance - Liability and Workers Compensation.
      1. If exempt from Workers Compensation insurance, an exemption certificate is acceptable.
      2. Review proof of insurance documentation to ensure it is current.
   3. Copy of current license(s).
      1. Check the license status on-line (FL, GA, AL) to confirm type, expiration, and to look for any official complaints on file.
         1. If complaints are found, ask for an explanation for each. If answers are acceptable, move forward, if not, deny.
   4. If available, a resume of work experience and homes completed.
      1. This is in addition to the information provided in the Builder Data Sheet.
      2. Consider the Builder's experience relative to the project being approved.
         • If similar in size to previous projects, consider approval.
         • If much larger or of a different nature than normal, review with the loan officer and Builder to discuss specifics. Consider relevant factors (for example: parties involved, Loan-to-Value (LTV), loan structure, take-out).
2. Determine if the Builder is an existing client of the bank.
   1. In Xperience > SilverLake > Customer & Account Lookup.
   2. Search for the client by name, business name, TIN, or SSN.
   3. If this is a Commercial client, review the following in Abrigo:
      1. Risk rating
      2. Financial performance
      3. Other pertinent items 
3. Review any accounts (deposit and/or loan) to determine if there are any charge-offs.
   1. If there is a charge-off, deny the request.
   2. If you would like to appeal this denial, contact Ramsay Sims or Lee Nichols.
4. If ALL items above are satisfactory, submit the required documentation to _Construction Administration for review and possible inclusion on the approved builder list.
5. Construction Loan Administration (CLA) will pull credit on the Builder.
   1. If credit report is acceptable, and there are no other concerns present, approval may be granted.
   2. If the credit report notes issues, or there are other red flags, check references.
      1. If any references provide a negative response, the request will be denied.
6. Approved Builders are reviewed at least annually by Credit Administration as follows:
   1. For Builders with direct and/or indirect exposure of $2.0 million or less:
      1.  Steps 1 - 3 are reviewed.
      2. Consider the banks working relationship over the last year, both CLA and client perspectives.
      3. If all items are satisfactory, the Builder may be re-approved.
      4. If there are issues noted, denial may be warranted.
   2. For Builders with direct and/or indirect exposure of more than $2.0 million:
      1. Steps 1 - 3 are reviewed.
      2. Consider the bank's working relationship over the last year, both CLA and client perspectives.
      3. Obtain the most recent financial statements and work with the Commercial Underwriting team to have them analyzed.
         • In Some cases, this will already be happening if the bank has a direct loan relationship with the builder.
         • If not, analysis should be similar to an annual review process for existing clients.
      4. Discuss the Builder relationship with relationship manager, noting any issues or concerns.
      5. If no concerns, approval may be granted.
      6. If concerns are noted, denial may be warranted with no new projects accepted and those in process completed as normal, until exposure is eliminated.