Credit Reporting for Construction loans

[Nicole Brown]

Can you let me know if other financial institutions are reporting to the credit bureau during construction? If so, what is your process? Do you offer all in one construction loans today?

Today Timberland Bank is not reporting construction loans to the credit bureau for a couple different reasons.

1. We want to charge interest from the first of the month through the last day of the month. (JH allows this 3 days prior to the due date to issue the statement). Due date is the first of the month with a 30 day grace period during the construction phase. This allows interest due to be as accurate as possible instead of estimating the interest and/or draws and the borrower enough time to receive and make a payment without a late charge penalty.
2. We want the due date of the first vs. the 15th because we do an all in one construction phase. The construction loan cannot have the 15th for a due date and the permanent financing the first. Timberland cannot have the 15th for both construction and permanent.

Thank you for any insight and help.

[Rachelle Barker]

This is Rachelle Barker with Banner Bank, yes, we have all in one construction loans, they are currently turned on for credit reporting. I would be happy to discuss with you. Feel free to email me rbarker@bannerbank.com

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