Once things are going well it seems like you would leave them alone and enjoy the ride. Not so with so many of the larger banks, however.
Wells Fargo has decided that the permit fees which are estimated, if not used for that purpose will be paid donw on the mortgage now and no longer will be moved to the contingency which has been the policy of all of the lenderws so it could be used on other improvements that may be needed.
The borrower is borrowing the money for 30 years and this money quite often can go to paying on items of construction that would keep the borrower from having to come out of pocket and pay for. The indication is that any line item savings will now be paid down on the mortgage as well and not be moved to contingency to pay for something that was an overrun. Too bad as this will create additional burden on the borrower's from time to time.
I know we have had many projects that would have gone south except we achieved savings that were used to put it back on track, This will bite you later.
Thank goodnes all lenders haven't gone this way... M
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