U.S. Bank Housing Capital Company, a division of U.S. Bank, went live today with an automated solution that allows it to better manage homebuilder construction loans. Already, the bank is thinking about expanding the tool to the broader commercial real estate platform.

The Minneapolis, Minn.-based bank worked with Built Technologies, a construction finance software company, to customize the online solution during the past year. U.S. Bank Housing Capital Company is a division of the $553.9 billion U.S. Bank, and its portfolio makes up about $5.5 billion of the larger $50 billion commercial real estate loan portfolio, according to Jason Park, president of U.S. Bank Housing Capital Company.

Today was the go-live day for the tool, although Park expects it will take probably until midyear to convert all loans over to the new platform. “We’re going to take it in increments and take a bite-sized approach, focus on the homebuilder platform first and see if we can leverage that into the broader commercial real estate platform,” he said.

Park said the new system allows all parties to access loan documents and information online, creating a “digital ecosystem” that gives everyone in the loan process access to submit and view the data needed to perform their jobs. That includes customers, vendors and draw inspectors, who check in to see that construction is progressing as reported by the builder. Built created a mobile app specifically so that draw inspectors can retrieve and upload loan data as needed. Previously, this monthly process was managed manually by sharing spreadsheets, Park said.

Eventually, the system will allow U.S. Bank Housing Capital Company to create an aggregate portfolio of the data, giving it the macro-level view that banks have been pushing for during the past five to 10 years, Park said.

The ability to better oversee and manage loan risk was also a huge selling point for the new software, Park said. The system allows lenders to evaluate construction progress at any point in the project, to see how much of the loan is funded and how much of the project is complete, he explained, adding that will improve the company’s overall risk management practices.

Built CEO Chase Gilbert said that in the wake of the pandemic more banks have expressed interest in the software-as-a-service offering. Initially, COVID slowed interest as banks steered their resources toward managing remote work and the PPP loan process. After that initial slow period, interest in the solution picked up rapidly as construction stoppages began to raise the risk of loans. Built, founded in 2014, has raised $164.1 million over four funding rounds, according to Crunchbase.

“You’ll recall that there were construction halts throughout America, in most cities, where all of a sudden, you literally, legally could not continue to build,” Gilbert said. “It became very convenient that we could provide a real-time pulse on the entire portfolio in any project that was impacted by COVID.”

The construction loans are the most recent loans to engage software solutions to speed what have been traditionally manual processes. Mortgage loans and auto loans are also leveraging automation.

Bank Automation Ignite, taking place April 13-14, 2021 as a virtual experience, is the event for inspiring automation initiatives and investment in financial services. Formerly the Bank Innovation Ignite conference, this new focus creates an event where financial services professionals can discover new use cases and technologies that are accelerating automation in banking. Learn more and register for the event at www.BankAutomationIgnite.com.