The Value of Centralized Loan Administration in Construction Lending
Securing the riskiest part of your portfolio is crucial, especially when economic conditions are uncertain. Choosing between centralized and decentralized loan management is something that each lending institution will need to do as they grow and scale. When evaluating lending practices, lending institutions may consider a centralized model for loan administration as this can lead to greater efficiency, more bank-level controls, better risk management, and, ultimately, a better customer experience.
When shifting to a centralized loan administration, the burden of responsibility for tedious and timeconsuming administrative duties can be lifted off of Relationship Managers (RMs) and Branch
Administrators, allowing them to focus on building existing customer relationships and forming new ones. Some of the benefits of centralizing loan administration include: