Austin, Texas – (BUSINESS WIRE) – Rabbet, a leading provider of home finance software to commercial real estate lenders and developers, today released the State of Construction Finance Report 2021, which examines in depth how mortgage lending processes and perceptions have changed and what those processes might look like in the future. The most important findings include:
60 percent of those surveyed use more digital processes than before the pandemic
95 percent of respondents felt that part of their process could be automated to reduce time and errors
More than a third of lenders and 40 percent of developers were unsure of the security of their process
To compile the data, Rabbet distributes a survey each year to lenders and developers representing different portfolio sizes. This year’s report captured how survey participants in the U.S. maneuvered the impact of the pandemic on their home finance process, data management, and collaboration. The data from 2021 were then compared with data from previous years. This report tracks the trends Rabbet caught in 2020 at the height of the pandemic and sheds light on the impact of the impending pandemic.
This year’s report showed that lenders need better visibility into their portfolios and aim to not rely on manual risk detection processes. 36% of lenders say they would automate the identification of at-risk projects if they could streamline some aspect of reporting. When asked the same question, 40% of developers said they would automate monthly cash forecasting and forecasting. Both are critical components that often require tedious manual labor to produce accurate reports.
The survey revealed flawed collaboration methods that leave room for error and create a bottleneck in an already time-consuming process. The current home finance process for both lenders and developers involves collaboration between internal teams and external stakeholders. This communication is challenging due to its reliance on outdated systems and the decentralization of teams due to the pandemic.
“There is significant disagreement between the lender’s and the developer ‘s perception of each other’s process efficiency,” said Will Mitchell, CEO of Rabbet. “The fact that 73% of lenders say the most time consuming part is finding and fixing bugs underscores the fact that the home finance process needs improvement. Everyone in the industry benefits from better standardization and implementation of digital processes not only in order to survive, but also to thrive if we move forward. ”
The full construction finance report 2021 can be found here.
Rabbet provides cloud-based solutions for commercial lenders, real estate developers and credit monitoring groups to centralize home finance, automate administrative tasks and reduce the time it takes to manage draws. Rabbet, based in Austin, TX, was founded in 2017 and provides transparency and efficiency in commercial construction projects worth billions of dollars. You can find more information about Rabbet at www.rabbet.com.