Effective Loan Pricing & Decisioning: The Impact of COVID-19 on Your CRE Strategies
Having a hard time discerning whether your lending team is originating both high quality and profitable loans? Are you struggling with how to price loans in a changing rate environment and how to stay competitive on the right deals?
In this session, you will learn how to avoid some common pitfalls in loan pricing decisions and assessing overall customer profitability. We will discuss risk-based pricing methods, blended funding concepts, and profitability calculations. We will also discuss the best profitability benchmarks for your current capital position and loan to deposit ratio, as well as how CECL might impact pricing strategy. Trepp LLC will also be sharing insights into the current state of the commercial real estate (CRE) sector and what they are hearing, including the changes they think CRE will see due to this pandemic.
- How to decision CRE in a COVID-19 world
What the different loan pricing models are and their main components
- The concept of blended funding and the cost of funding loans
- Selecting the correct benchmark/target for loan pricing
- How CECL could impact pricing and product strategy
- The specific pandemic impacts on CRE and recommendations on what to do