Construction Lending: Administering and Monitoring Residential Construction Loans Webinar 2023 | Iowa Bankers Association | 24 April 2023 | Webinar
Venue
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| Event Date |
Tue Apr 25 UTC (over 1 year ago)
In your timezone (EST): Mon Apr 24 8:00pm - Mon Apr 24 8:00pm |
| Location | Webinar |
| Region | All |
Details
The 2008-2009 downturn in commercial real estate (CRE) exposed many weaknesses in bank construction lending practices. Since that time, residential construction lending continues to expand slowly, along with the economy, with remodeling maintaining a large share of projects. Into 2020, housing starts have increased, yet construction firms report labor shortages in many skill categories. 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 to be covered include:
• What is construction risk and how is it mitigated?
• Differences between residential and commercial construction loans
• What additional due diligence is needed, beyond a conventional mortgage application and underwriting?
• Full construction vs. repair/remodel
• 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)?