Construction Loan Draw Management

Construction Loan Draw Management takes a draw request from submission to funding: the borrower requests a draw against the budget, an inspector visits the site and records geo-tagged, time-stamped photos in a mobile app, and your lender staff approve each disbursement against what was verified. Budgets, retainage, lien waivers and title updates are tracked line by line. Every draw keeps its inspection evidence and approvals, ready for credit review, audit and examiners.

The problem it solves

Most construction lending teams manage draws through email, spreadsheets and inspection reports that arrive as PDFs. Draw administrators reconcile the borrower's request against the budget by hand, chase lien waivers and title updates, and match inspector photos to line items after the fact. It is hard to show that funds went out only for work actually in place, and when a project stalls or a contractor walks away, rebuilding the draw history takes days of searching through inboxes.

Who it’s for

• Construction lending departments at banks and credit unions
• Draw administrators and loan operations teams who process disbursements
• Construction and site inspectors, staff or third-party
• Credit officers and chief lending officers who answer for the construction portfolio
• Internal audit, loan review and examiners, who need evidence behind every draw

1. Set up the loanEach construction loan starts with an approved budget broken into line items, the draw schedule, retainage terms and the documents required before each draw, so later requests are checked against an agreed baseline.
2. RequestThe borrower or contractor submits a draw request against the budget lines, with invoices, lien waivers and change orders attached, and the request is checked for completeness before anyone reviews it.
3. InspectThe inspector visits the site and records progress in the mobile app. Each photo carries its location and time, and is tied to the budget line it supports, so the percentage complete is backed by evidence.
4. Approve and fundThe draw administrator reconciles the request with the inspection, applies retainage and conditions, and sends the draw for approval. Approved draws are passed to your loan or payment system for disbursement; Moraph does not hold or move funds.

Line-item budgets

Each loan's budget by line, with amounts drawn, remaining, retainage held and contingency used, kept current with every approved draw and change order.

Mobile inspection app

Inspectors work from a phone or tablet, see the lines to verify, capture photos and record percentage complete on site.

Geo-tagged evidence

Every inspection photo carries the device's location and time, and photos taken away from the project site are flagged for the draw administrator.

Offline capture

Inspections can be recorded where the site has no signal and are uploaded when the device reconnects, keeping the original capture time.

Draw reconciliation

Requested amounts shown beside verified progress for each line, with differences highlighted before the draw goes for approval.

Retainage tracking

Retainage held per line and per contractor, and its release recorded against completion and final lien waivers.

Lien waivers and title

Conditional and unconditional lien waivers, and title update or date-down requirements, tracked as conditions on each draw.

Change orders

Budget reallocations and change orders requested, reviewed and approved with the reason, and the budget history kept.

Borrower portal

Borrowers and contractors submit draws, upload documents and see the status of each request without email back and forth.

Approval limits

Draws routed to approvers by amount, loan type or exception, with a second approval when a draw departs from the inspection.

Portfolio view

Every construction loan with its percentage complete, funds disbursed, remaining budget and days since the last draw.

Draw history and audit trail

Who requested, inspected, reconciled and approved each draw, and when, with the evidence that supported it.

Draw administrator

Accepts draw requests, orders inspections, reconciles and prepares draws for approval

Inspector

Visits sites, captures geo-tagged photos and records percentage complete

Loan officer

Owns the borrower relationship, sees the loan's draws and requests budget changes

Draw approver

Approves, reduces or holds draws and approves change orders within their limits

Borrower or contractor

Submits draw requests and documents through the borrower portal

Auditor or examiner (read-only)

Views loans, draws, inspections and the audit trail, with no ability to change them

Loan origination and servicing

Loan, borrower and commitment details from your loan system, and approved draw amounts sent back for disbursement, mapped during implementation.

Payment or disbursement system

Approved draws are passed to the system your institution uses to move funds, and the funding confirmation is recorded on the draw.

Third-party inspection firms

Outside inspectors use the same mobile app under their own accounts, or upload their reports where their firm uses its own tools.

Title and escrow

Title update and date-down results recorded as draw conditions, by upload or file exchange with the title company you use.

Collateral monitoring

Construction progress and funds disbursed shared with Moraph's Dynamic Collateral Monitor or your own collateral system.

Single sign-on

Staff sign in through your identity provider (SAML or OpenID Connect).

Work API

Loan, draw and inspection data available to your data warehouse and reporting tools through the Moraph Work API.

Single sign-on

Staff sign in through your identity provider, so your password and multi-factor policies apply. Inspectors and borrowers use invited accounts with multi-factor authentication.

Role-based access

What each person can see and do follows their role; preparing a draw is separate from approving it, and borrowers see only their own loans.

Evidence integrity

Inspection photos keep their capture location and time, and a submitted inspection cannot be edited; corrections are recorded as new entries.

Encryption and keys

Client data is encrypted, with keys Moraph staff cannot use without explicit, time-bound authorization.

Complete audit trail

Every view, change, approval and export is logged with the person and time, and cannot be edited.

Data residency

Data stays in the hosting region you choose: the United States, the United Kingdom or Australia.

Moraph cloud

Hosted and operated by Moraph in the United States region. United Kingdom and Australia regions are available for institutions outside the US.

Dedicated environment

A single-tenant environment for institutions whose policies require isolation, scoped in the proposal.

Mobile app

The inspection app runs on current iOS and Android phones and tablets, and can be distributed through your mobile device management.

Loan data mapping

We map your loan system's construction loans, borrowers and commitments to the product and agree how approved draws flow back. We need a data extract and a contact from your loan operations team.

Budget and draw templates

Budget line structures, draw conditions, required documents and retainage rules are set up for your construction loan products.

Inspection setup

Inspection checklists, site boundary rules and the treatment of out-of-boundary photos are agreed, and staff and third-party inspectors are invited.

Approval rules and roles

Approval limits, exception routing and roles are configured to match your credit policy and procedures.

Active loan migration

Loans already under construction are loaded with their budgets and draws to date, by agreement on which loans move and which finish in the old process.

Training and go-live

Draw administrators, approvers, inspectors and borrowers are trained on their own workflows, and the first draws are worked with Moraph alongside.

• The product does not hold, move or disburse funds. Approved draws are passed to your loan or payment system, and your staff release the money.
• Location and time come from the inspector's device. They are strong evidence that photos were taken on site, but they do not replace the inspector's professional judgment or your own controls over who inspects.
• It does not perform appraisals or evaluations, and percentage complete is the inspector's assessment, not a valuation.
• It is not a loan origination or servicing system; loan terms, interest and payments stay in your existing systems.
• Title searches and lien waivers are provided by the borrower and title company; the product tracks them as conditions but does not obtain them.
• It is designed for US construction lending practice. Lending in other countries may need different conditions and documents.
• Approval decisions remain your institution's; the product records and routes them but does not approve draws on its own.

• Load one of your active construction loans and its budget, and walk a draw from request to approval
• Have an inspector record a site visit in the mobile app, including a location without signal
• Check how a photo taken outside the site boundary is flagged and handled
• Compare the reconciliation screen with how your team checks draws today
• Confirm role separation: who can prepare, approve and release a draw
• Review the draw history and audit trail an examiner would see for one loan