The primary purpose for a lending institution to use third-party disbursing is to receive mechanic lien coverage on its first position, helping protect the deed of trust or mortgage and support an easier transition to permanent financing.
Mechanic liens may be filed by unpaid subcontracted parties—including material suppliers to subcontractors. Our underwriter-approved process includes direct payments to contractors, subcontractors, and construction material suppliers.
Each disbursing transaction is supported by a construction inspection detailing completed work by cost category. Transactions are reviewed to provide loan-to-value monitoring and mechanic lien risk management, with project information available through Disbursa.