Residential construction lending continues to expand slowly, along with the economy, with remodeling maintaining a large share of projects.
This program provides an overview of the major issues involved in consumer or residential construction lending, primarily to individuals having a home built or remodeled.
Topics Will Include:
- What is construction risk and how is it mitigated?
- What is the type of project?
- Full construction vs. repair/remodel
- Owner as borrower, hires a builder
- Builder/speculative
- What additional due diligence is needed, beyond a conventional mortgage application and underwriting?
- Construction contract and cost estimate issues (Description of Materials form)
- Contractor credentials and qualifications
- Plans and drawings
- Survey
- Title insurance
- Appraisal issues
- Loan pricing and structuring
- Typical interest rate and fees
- Construction loan agreements
- Issues with draws and inspections, including cost over-runs and lien priority
- How is the construction loan going to end (get repaid)?
Who Should Attend?
Consumer lenders, mortgage bankers, private bankers, small business lenders, commercial lenders, credit analysts, loan review specialists, special assets officers, lending managers and credit officers involved in the consumer lending process. Also intended for support personnel involved in the administration of residential construction loans.
Instructor
Richard Hamm has been training bankers for 25 years, designing and delivering courses specializing in commercial lending and credit, including portfolio and risk management, commercial real estate (CRE) and appraisals, plus selling and negotiating skills, and director training.
Richard is based in Huntsville, AL and has owned/operated Advantage Consulting & Training for 13 years, after a 22-year banking career including senior positions in lending and credit, plus president through formation and acquisition of a community bank. He has BS and MBA degrees from the University of Alabama.