Construction Loans: Administering & Monitoring
Construction loans for both residential and commercial real estate (CRE) remain a major part of commercial bank lending, despite some decrease in volume due to current economic conditions. On the residential side, remodeling outpaces new homes in some markets. CRE construction projects have continued to grow for certain property types, such as multi-family and industrial/warehouse. This program provides an overview of the many issues involved in both residential and commercial construction administration, as well as key differences between them. The focus is on the issues behind the various procedures in construction.
When
Where
Virtual
Highlights
- What is construction risk? How is it different from credit risk?
- Identifying the degree of risk and appropriate levels of monitoring and controls
- Types of construction situations: full construction vs. repair/remodel/repurpose
- Differences between residential and commercial construction loans
- Issues with construction contracts and budgets
- Assessing contractor credentials and financial strength, plus a format to use
- Residential:
– Additional due diligence beyond a conventional mortgage application and underwriting, such as a detailed cost estimate (description of materials form)
– How is the construction loan going to end (get repaid)?
- Commercial:
– Interest reserves and increased use of pre-built or prefabricated components - Seven items that determine how you handle a specific construction
loan:
– The degree of overall risk
– The type of project (full construction vs.
repair/remodel/repurpose)
– The loan approval and any policy waivers or added
conditions or contingencies
– The term sheet (or commitment letter) to the customer
– Your bank’s policies and procedures
– The construction loan agreement
– Results of inspections and other events during construction
9:00 a.m. – 4:00 p.m.
Program
Noon – 1:00 p.m.
Lunch
Real estate lenders, commercial and consumer lenders, credit analysts, mortgage lenders, private bankers, small business lenders, loan review specialists, special assets officers, lending managers, credit officers and support staff involved in the construction, appraisal review and real estate lending process.
Registrants will receive instructions in advance to access the online class and download the materials. Registrants will have access to a recorded copy of both sessions and materials for up to 90 days.
First Registrant: $425
Additional Registrant: $375
All Non-Members: $850
The fee includes access to the virtual seminar, program materials and session recordings.
IMPORTANT: Registration is per person. All attendees must be registered to ensure access to the program, materials, recorded content and to be eligible to receive CE credit.
Cancellation/Refund Policy
Cancellation/substitution requests must be made in writing. Email requests to education@texasbankers.com. Full registration fees will be refunded if written notice is received no later than March 25, 2024. Substitutions are permitted without penalty.
Texas State Board of Public Accountancy: 7 CPE credit hours per day. There are no educational prerequisites.
Presenter
Richard Hamm
Richard Hamm has been training bankers for more than 30 years, including both creating and teaching courses for the American Bankers Association (ABA) and the Risk Management Association (RMA), plus regional banking schools (Graduate School of Banking – Wisconsin, Graduate School of Banking at Colorado, Southwestern Graduate School of Banking and Barret School of Banking – Memphis), numerous state banking and community banking associations and individual banks.