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Commercial Construction Lending Webinar

February 28, 2022 1:30 pm - 3:30 pm
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His clients include National associations such as the American Bankers Association (ABA) and the Risk Management Association (RMA), regional banking schools such as the Graduate School of Banking at Colorado, the Southwestern Graduate School of Banking (SWGSB) and other major schools, state banking and community banking associations in ten states, and individual banks

He is based in Huntsville, AL and has owned/operated Advantage Consulting & Training for 15+ years, after a 22-year banking career including senior positions in lending and credit, plus president during the formation of a community bank. He has BS and MBA degrees from the University of Alabama.

Construction loans for commercial real estate (CRE) remain a major part of commercial bank lending. Many community banks attempt to use versions of their residential formats and policies to administer commercial construction loans; however, this generally does not adequately control the situation due to several important differences between residential and commercial projects.

This program provides an overview of the key steps involved in effectively administering commercial construction loans.

Covered Topics

  • What is construction risk and how is it mitigated?
  • Differences between residential and commercial construction loans
  • What is High Volatility CRE (HVCRE)?
  • Issues with contractor qualifications, construction contracts and budgets
  • Seven items that determine how you handle a specific loan
    • The overall degree of risk and key issues driving risk
    • The type of project (full construction vs. renovation, etc.)
    • The loan approval and related conditions or contingencies
    • The term sheet or commitment letter written to the customer
    • Your bank’s policies and procedures
    • The construction loan agreement
    • The events and issues that arise, including results of inspections
  • Other key documentation
    • Title insurance
    • Survey
    • Bonding
  • Funding and draw controls
    • Inspections
    • Lien waivers and lien updates
    • Disbursement methods
    • Monitoring usage of budget contingency
    • Line item transfers
  • Completion of the project and (if applicable) stabilization

Who Should Attend?
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