Commercial Construction Loans: Administering and Monitoring - Sp19

Course Length
90 mins

Instructor
Richard Hamm

Price
$555.00

Upcoming Sessions

Description

Presenter: Richard Hamm, Advantage Consulting & Training

This three-part program will be presented live on: April 9, 16 & 23, 8:30-10:00 a.m. Central Time
Recording available through: July 23, 2019
Price: $555

 

The 2008-2009 downturn in commercial real estate (CRE) has exposed many weaknesses in bank construction lending practices. This was due, in part, to community banks attempting to utilize versions of their residential forms and policies to administer commercial construction loans. Such an approach generally does not adequately control the situation due to the key differences between residential and commercial. This program covers the important steps involved in effectively administering commercial construction loans, including typical forms and common errors to avoid.

 

Specific topics to be covered during this seminar include:

  •  Differences between residential and commercial construction loans
  • Factors to consider in gauging the level of risk involved in the project/loan
  • Issues with construction contracts, budgets and the interest reserve
  • Five items that determine how you handle a specific loan
    • The type of commercial construction situations (new construction, repair/renovation, etc.)
    • The loan approval and related conditions or contingencies
    • The commitment letter written to the customer
    • Your bank’s policies and procedures
    • The construction loan agreement
  • Other documentation: Surveys, title insurance and bonding
  • Funding controls: Inspections, lien waivers and disbursement methods
  • Completion of the project and stabilization (if applicable)
  • Special issues with owner-occupied loans
  • Four ways to tailor your construction (and other) policies to your actual or planned portfolio

 

Target Audience:  Commercial lenders, credit analysts, and support staff that deal directly with commercial construction loans; mortgage bankers, private bankers, small business lenders, loan review specialists, special assets officers, lending managers and credit officers indirectly involved in the construction lending process.

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