1. Prior to loan closing, 3rd party inspecting architects and engineers do a final review of documents, making certain all permits are in place and all documents are in order.

2. Budget is reviewed by line item, making certain plans and specs are in sync with the budget.

1. The borrower submits AIA form G-702 to the Title Company requesting funds. Along with this request is the construction budget.

2. After receiving the G-702, the Title Company orders inspections to be completed by 3rd party inspecting engineers and architects.

3. Inspections are completed and reports are submitted to the Title Company. Title Company receives, reviews, and balances lien waivers with total draw request.

4. The Title Company sends the inspections along with the G-702 form to Hallmark American Group (HAG) for funding.

5. HAG reviews the inspections and compares the request to the projected budget. If the request is acceptable, HAG approves it and wires the funds to the Title Company. Concurrently HAG sends the G-702 form and a faxed request for draw funding to the bank participant lenders.

6. Participating lending institutions wire their portion of the construction draw to HAG.

7. The Title Company disperses funds separately to the General Contractor and to the individual Sub-Contractors.

1. Changes up to 5% of a particular budget item or $25,000 are typically acceptable and considered usual. Although the particular item may require additional monitoring, there are usually no added measures required for funding.

2. Changes above the parameters listed in #1 above require extra scrutiny. Contingency funds may be used to absorb the variation if the request is deemed proper.

3. Major deviations may require a meeting with the borrower and an additional equity contribution from the borrower.

* Within every individual line item, is the potential for a multitude of problems. Generally, the earlier these problems are confronted, the easier they are to solve. Often, troubles are aggravated when problem items within draw requests are put on hold, while approved items are funded. We fund only 100% of each requested draw. It is our policy to never partially fund a draw request.