The House TruthROAD Act · Lenders
For lenders: when the draw file becomes the compliance file
The records Treasury wants are the records that already move through a renovation loan. The difference is tying each one to the deficiency it fixed.
If you fund renovation loans on single-family homes, Treasury's proposed renovate-to-rent rule touches your file. A borrower relying on the exception will need to show that a home had structural or core-system deficiencies at purchase, that those deficiencies were resolved, and that total improvements reached at least 15 percent of the purchase price of the home, land excluded.
Look at what Treasury lists as supporting records: scopes of work, invoices, proof of payment, photographs and records of completed work. Most of that passes through a lender at every draw. What's often missing is the link between a dollar released and the specific deficiency it fixed.
When that link is missing, the borrower's exception is harder to defend, and the lender is left holding a file that says money moved but not what it bought.
Eyes On the House™ (patent pending) was built around that link.
Available today:
- Buy walk. An independent walker walks the home and produces a line-item scope, giving you a verified rehab budget at underwriting.
- Line-item scope. Each line names the work, so core-system items and fit-and-finish items can be told apart.
- Line-by-line draw checks. Every draw is checked against the scope, and each line is marked Complete, Pending, Explain or Refund.
In development for V1.1:
- Draw release locked until scans are locked and lien waivers are in, conditional for the current draw and unconditional for the prior draw.
- Retainage locked until the final walk.
- Pre-work video at closing and weekly progress walks.
- Final lease- or sale-ready video.
The goal is simple. When someone asks what was fixed, the answer is already in the file, line by line.
Talk with us about a pilot on your next renovation loan.
This page describes a proposed rule for general information. It is not legal or tax advice. Feature availability is subject to change.