BankNewswatch

Residential Construction Lending

September 21

1:30 pm Central Time Zone.  A BankWebinars.com Program

Click Here to register for live programs $265

Click Here to register and receive recording $395*

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.

Covered Topics

  • 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)?

Faculty

Richard Hamm has been training bankers for 28 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. He also conducts eight senior lender forums on a periodic basis in multiple states and one series at the national level.

* Registration Plus Recording: Includes the live session (one connection, unlimited attendees), CD ROM, (shipped 7-10 business days after live session), unlimited access to OnDemand Playback and links to presenter materials and supplementary handouts for 6 months after live session.