Loan Origination Activities · 27% of the SAFE exammedium
Correct answer: Release only 70% of the requested draw amount, proportional to work completed
Lenders disburse draws proportional to verified completion. If the draw request was for 100% of framing but only 70% is complete, the lender releases 70% of that draw amount. This protects against over-disbursement — the lender never wants more money released than the collateral supports. The contractor can request the remaining 30% after finishing the framing and passing another inspection. This partial-draw approach is standard risk management in construction lending.
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