Draw Managment

What This Module Does The Draw Management module enables lenders to control, review, and approve rehab-related budgets and draw requests within a structured workflow. Borrowers submit line-item rehab budgets (“Scopes of Work”) and request draw disbursements against approved line items. Lenders retain full approval authority at every stage.

The module provides:

Line-item budget visibility Formal draw request submissions for borrowers Controlled approval and rejection workflows for lenders Full audit history across the loan lifecycle

What This Module Does Not Do Automatically disburse funds

Approval in LendingWise authorizes a draw but does not move money. Lenders remain responsible for releasing funds outside the platform unless integrated with a third-party service.

Why Lenders Use Draw Management Enforces approved rehab budgets before funds are released Reduces draw disputes and borrower back-and-forth Creates a permanent audit trail for compliance, investors, and servicing Aligns inspections, budgets, and draw approvals in a single workflow

Who This Module Is For Lenders Review and approve or reject scopes of work Review and approve or reject draw requests Review and approve or reject budget revisions Maintain audit and compliance visibility

Borrowers (Lender Context Only) Borrowers interact with the system only to:

Submit an initial scope of work Request draws against approved line items Request revisions when permitted by lender settings

All borrower actions require lender review and approval.

High-Level Draw Lifecycle Borrower submits a Scope of Work Lender reviews and accepts or rejects the Scope of Work Borrower submits a Draw Request Lender reviews and approves or rejects the Draw Request Lender releases funds outside the platform

Getting Started (One-Time Setup) Enabling Draw Management Standard Mode (Default)

Allows lenders to manually record draws Does not support borrower-submitted budgets or draw requests

Premium Mode

Enables borrower-submitted scopes of work Enables line-item budget enforcement Enables draw and revision requests

To upgrade to Premium Mode, contact [email protected]

Lender Configuration & Settings Feature Settings Setting

Description

Default Draw Fee

Suggested fee applied per approved draw

Budget Settings Setting

Description

Budget Enforcement

Enforce a fixed budget structure or allow open-ended budgets

Revision Settings Setting

Description

Revision Permissions

Control whether borrowers may request revisions and whether total budget increases are allowed

Lender Consideration: Allowing budget increases may require underwriting or credit re-approval. Most lenders restrict increases to prevent scope creep.

Roles & Permissions (Lender View) Borrower Permissions Borrowers may only:

Submit scopes of work Submit draw requests Submit revision requests (if enabled) Upload documents Add notes at the line-item level

Lender Permissions Lenders may:

Accept, reject, or request revisions on scopes of work Approve or reject draw requests Approve or reject revision requests Communicate via line-item notes

Borrower Workflow (What Lenders Will See)

1. Scope of Work Submission Borrowers submit a line-item rehab budget when requested by the lender, typically pre-appraisal.

Lender View:

Budget categories and line items Cost amounts Completed work indicators Supporting documents and notes

Lender Actions:

Accept Reject Request revisions

Once submitted, the request appears in the Draw Management tab and enters review status.

2. Draw Request Submission Borrowers may submit draw requests only after a Scope of Work is accepted.

Lender View:

Requested amounts per line item Progress against approved budget Supporting documentation Borrower notes

Lender Actions:

Approve Reject (with reasons provided per line item)

3. Revision Request Submission Borrowers may request revisions to approved budgets if permitted by lender settings.

Lender View:

Modified line items and amounts Net impact to total budget Supporting documentation

Lender Actions:

Approve Reject

4. Draw Status & History (Borrower Visibility) Borrowers can view:

Current draw status Approved vs requested amounts Historical disbursements

This visibility reduces borrower inquiries and disputes.

Lender Workflow: Review & Approval Reviewing a Scope of Work Location: Draw Management tab within the loan file

Prerequisite: Loan file must include a holdback amount in the Rehab Cost Financed field.

Actions:

Accept Reject Request revisions

Reviewing Draw Requests or Revisions What to Review:

Line-item completion values Requested amounts Supporting documentation Notes and comments

Actions:

Approve Reject (with line-item-level reasons)

Approving & Funding Draws Approval Effects:

Status updates to Approved Borrower may submit additional draws or revisions Notifications are triggered automatically

Important: Approval does not release funds. Lenders must disburse funds outside LendingWise unless using an integrated service.

Automation & Merge Tags Automated Actions The automation engine can:

Notify borrowers and lenders on submission, approval, or rejection Trigger different notifications for: Budget submissions Draw requests Revision requests

Automation Triggers Submitted Accepted Rejected

Available Merge Tags ##Rehab Construction Financed## ##Total Draws Funded## ##Current Escrow Balance## ##Project Completion Percentage## ##Default Draw Fee## ##Summary of Draws## ##Draw Request Latest## ##Draws Fee Latest## ##Date Requested Latest## ##Draw Status Latest## ##Draw Approved Percentage Latest## ##Approved Draw Amount Latest## ##Funded To Borrower Latest## ##Date Funded Latest## ##Draw Notes Latest##

Where Merge Tags Can Be Used Emails Documents

Trinity Integration (If Enabled) Trinity Handles Initial budget review and feasibility products Inspections Detailed inspection reports

Lenders pay Trinity directly.

LendingWise Handles Capturing borrower-submitted budgets and draw amounts Ordering inspections through the platform Sending data to Trinity and returning reports to the loan file

Lenders retain final approval authority regardless of inspection outcomes.

If you would like to see the full knowledgebase article for this integration, see Trinity Real Estate Solutions Integration (Draw Management)

Statuses & Notifications Draw Status Definitions Status

Visible To

Meaning

Submitted

Borrower / Lender

Awaiting lender review

Approved

Borrower / Lender

Authorized for funding

Rejected

Borrower / Lender

Not approved; resubmission required

Notifications Fully driven by the automation engine Email content is fully customizable Delivery method: Email

Audit Trail & History All draw activity is permanently recorded in a history timeline, including:

Budget versions Draw submissions Approval and rejection decisions

Who Can View Audit History Lenders Borrowers

If you need any additional help, please reach out to [email protected].