Options for dealing with problem real estate credits
Course Overview
This course is aimed at real estate lenders who may encounter problem loans in their portfolios. It focuses on the underlying business drivers for commercial real estate, the reasons for problem loans in real estate, and common factors leading to problem loans. It provides participants with an analytical framework and outlines various options for dealing with problem real estate credits, including the advantages and disadvantages of workouts, various workout strategies, and deed-in-lieu and foreclosure considerations.
Who will benefit?
This course is for real estate lenders who may encounter problem real estate loans in their portfolios, including commercial lenders, private bankers, loan administrators, and credit personnel who want a deeper understanding of real estate problem loans and the options for dealing with them.
You will:
- Explain the complex relationships between real estate, people, and credit in lending.
- Recognize the effects of volatility and leverage inherent in real estate markets, and calculate their effects on value and income.
- Identify and cite key causes and indicators of potential problem real estate loans.
- List the six levels of problem loan analysis and the components of each.
- Formulate a proposal for a problem loan solution which considers loan restructure, discounted payoff, or ownership as possible strategies.
- Weigh the advantages and disadvantages of workout versus foreclosure/ownership.
- Recognize and describe potential sources of liability and litigation risk.
- Create a forward looking risk selection and mitigation process.
Prerequisites
Participants are expected to have some knowledge of real estate lending. Prior experience in workout or real estate problem loans is not necessary.
A Pre- and Post-test are available upon request.
Pre-course Assignment
The open enrollment version of this course requires you to complete a pre-course assignment.
Receive a 10% discount when you register 30 days or more before the start date of the course.
All scheduled dates for this event are listed below. If there are no dates listed we do not currently have this event scheduled.
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