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Draw Management

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

🎥 Video Overview (3–5 minutes)

Watch a short walkthrough of the Draw Management module to understand how lenders review budgets, approve draw requests, and maintain audit visibility throughout the rehab lifecycle.

▶ Watch the overview video:


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

  1. Borrower submits a Scope of Work

  2. Lender reviews and accepts or rejects the Scope of Work

  3. Borrower submits a Draw Request

  4. Lender reviews and approves or rejects the Draw Request

  5. 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
helpdesk@lendingwise.com

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.

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 helpdesk@lendingwise.com.