Fundamentals of Credit Policy for Commercial Real Estate Lending

September 9 2020 16:00 - 17:00 UTC

Course Description
Right or wrong, credit policy is the organization’s rule book for its credit risk management strategy, and it also reflects the organization’s credit culture. Both the market and the regulatory agencies expect the credit policy to be accurate, current, and succinct so that both line and credit have unambiguous and clear direction on how to identify, evaluate, underwrite, approve, book and monitor creditworthy clients.

Commercial real estate lending is a specialized type of lending that requires special attention to types of loans, borrowers, and underwriting as well as guidance for its support functions, specifically, construction loan administration.

**Content **
Areas to be discussed include:

  • Borrowers: Real estate developers and investors (REDI), Co-REDI borrowers (e.g., law firm that decides to build an office building for investment purposes), owner-occupied (e.g., law firm builds office building for its own use)
  • Guarantors: guarantors vs. sponsors, burn-off guarantees
  • Collateral issues: desirable types of real estate collateral, riskier types
  • Types of Loans, term lending, construction lending, high-volatility acquisition-development-construction (HV-ADC)
  • Concentration limits on total REDI borrower exposure, single project, single A&D project
  • FDICIA LTV limits on real estate
  • Project underwriting requirements: term, LTV, DSC, survey, appraisal, environmental risk management, Content expectations of regulatory agencies
  • Construction loan administration roles and responsibilities

Target Audience
Anyone who is directly or indirectly involved in lending to, evaluating, underwriting, approving or monitoring CRE borrowers:

  • CRE lenders
  • Credit analysts
  • Credit approvers
  • Loan review
  • Construction loan administration
  • Credit risk management
  • Credit risk policy

CPE Information:
• Prerequisites: N/A  • Advanced Preparations: N/A  
• Course Level: Basic • Group Internet Based Training

CBANC Network is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.

  • Real Estate
  • Loans
    • Policy
    • Credit
    • Commercial Accounts
RESOURCES
  • CRE Policy Down and Dirty 09092020.pdf
    Attendees Only
SPEAKERS
VIDEO REPLAYS

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