Construction lending and credit administration: Principles, policies, and practices
Most bankers acknowledge that construction lending is riskier than other types of commercial lending. Therefore, lenders must learn how to evaluate a developer’s ability to repay the construction loan and apply the appropriate underwriting of the construction project to ensure the structure of the loan results in it being repaid in full, on time, and as agreed.
This webinar addresses how to mitigate the higher risk that construction loans pose and offers advice and guidance on how to extend loans safely and profitably at financial institutions.
You will learn:
- Construction lending policy—The How-tos of defining a construction loan, outlining necessary information and documentation needed to evaluate a construction loan, and monitoring loan performance
- Appropriate underwriting and structuring—What to include for LTV, LTC, minimum equity, bonding, etc.
- Role and activities of real estate construction administration (RECAD)—The importance of sources & uses, costs review, inspections, disbursements, retention, liens, and construction problem mitigation