San Francisco's Union Bank has completed installation of a construction-loan system developed by Data Select Systems.
Based in Woodland Hills, Calif., Data Select Systems is a software company specializing in real estate loan systems for the banking market. Union Bank is using Data Select's Construction Loan Control Module III.
With more than $16.4 billion of assets, Union Bank had been managing 2,000 construction loans on its commercial loan accounting system.
Heavy Detail
According to Phil Freeman, president of Data Select, Union's commercial loan system wasn't designed to handle the detail required to manage construction loans, and Union Bank had to keep purchasing subsidiary systems and additional software.
"Unlike a car loan that is paid out at once, construction loans are funded as the construction takes place," said Mr. Freeman.
"There are hundreds of line items included with each loan, such as a budget for the foundation and the budget for the framing. The level of detail is enormous."
PC Network
At Union Bank, the Data Select software runs on personal computers in a local area network.
As part of the conversion, Union has reduced the number of construction loan administration sites from six to four.
Other versions of the system are installed at more than 42 financial institutions. Data Select will provide training, ongoing enhancements, and maintenance services at Union Bank.
