BankNewswatch

Commercial Construction Lending

Wednesday, September 7th, 2022 10:00 am - 12:00 pm

A BankWebinars.com Program

Click Here to register for live program $279

Click Here to register for live program and recording $419


Construction loans for commercial real estate (CRE) remain a major part of commercial bank lending. Many community banks attempt to use versions of their residential formats and policies to administer commercial construction loans; however, this generally does not adequately control the situation due to several important differences between residential and commercial projects. This program provides an overview of the key steps involved in effectively administering commercial construction loans.

What You'll Learn

  • What is construction risk and how is it mitigated?
  • Differences between residential and commercial construction loans
  • What is High Volatility CRE (HVCRE)?
  • Issues with contractor qualifications, construction contracts and budgets
  • The type of project (full construction vs. renovation, etc.)
  • Title insurance
  • Survey
  • Bonding
  • Funding and draw controls
  • Inspections
  • Lien waivers and lien updates
  • Monitoring usage of budget contingency
  • Line item transfers
  • Completion of the project and (if applicable) stabilization

Faculty

Richard Hamm

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.