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].