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)?
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.
Continuing Education (CE) Credits
This webinar is recommended for 2.5 CE Credit Hours. Each attendee will receive a Certificate of Attendance for self-reporting of CE Credits.
View Delivery OptionsRelated Topics
Instructor
Jeffrey Johnson
Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender of SouthTrust Bank and Senior Vice President and Commerci... read more.
Instructor
Richard Hamm
Richard Hamm has been training bankers for 30+ years, designing and delivering courses specializing in commercial lending and credit, including portfolio and risk management, commercial real estate (C... read more.
