Current Needs within the Marketplace

The way lenders, borrowers and consultants transact is impacted by how effective they communicate and control risk. Lenders striving to increase profits and stay competitive must operate efficiently and respond to their customer’s needs.

According to the FDIC, approximately 1% of the $45 billion dollars in construction loans generated in 2003 have resulted in either a non-conforming or charge-off status . Although this delinquency rate appears small it has steadily increased since 2001 and now accounts for over a $60 million dollar loss to the banking industry. Recent historical data have shown that approximately 124 institutions have problem loans, resulting in a $93 million drain on the industry.

As a result the State of California has recently passed an assembly bill (AB 620) that will require lenders to use qualified outside control companies utilizing the services by ISBS. This law has gone into effect on January 2004. To stay competitive lenders have taken a more active role in monitoring portfolios and responding to their borrower’s needs.

The entire financial services industry has gone through a major transformation due to consolidations, regulatory pressures and an ever changing marketplace, all resulting in an environment impacted by bottom line results.


Our Response to Those Needs

ISBS is mindful of this environment and the requirements of the new law AB 620. ISBS has created a powerful disbursement processing and loan monitoring system called DOC™. DOC™ will provide its users an interactive way to manage construction loans. With its simple commands and extensive suite of options users are able to control the flow of information in an efficient and cost effective manner.

DOC™, a web based product, means greater flexibility and convenience for its users. Lenders, Borrowers, Contractors and Inspectors will be able to process and view construction loan fund line items and related report information, all in real time. Also included within DOC™ is an advanced telephony system that incorporates a sophisticated voice recognition feature that will allow users to obtain critical loan information as well as allow inspectors to communicate crucial construction information from the field to the all users.

DOC™ will now provide users a cost effective solution in the administration of construction loans. Users will be able to control the submission of payment information and the monitoring of the budget and source of funds. By using DOC™ projects will be better managed and more efficiently run.

The ISBS website will be able to handle the processing and transaction of thousands of requests, simultaneously 24 hours a day, taking only minutes to process. Currently a typical construction draw can take up to 48 hours to process from the time the information is received and the site inspection has been completed.

© Copyright 2004 by ISBS GROUP

Top of Page