Course overview
This program is designed for those credit and lending professionals that are new to the real estate lending world. Topics covered focus on real estate risk and underwriting the credit. The cases focus on both income producing credits and owner occupied loans.
Course Objectives
Upon completion of the course participants will be able to demonstrate their knowledge of the following:
- Federal regulations and guidelines
- Bank policies that govern real estate lending activities
- The characteristics of different types of commercial real estate loans including owner occupied real estate and income producing properties
- The components of net operating income.
- How to apply cash flow techniques and underwriting skills to real cases
- How to stress test key elements of real estate analysis including: lease income, vacancy rates, capitalization rates and operating expenses
- How to construct and evaluate project viability based upon income property cash flow, debt service coverage and loan to value
- The three approaches to value in an appraisal
- How to compare appraisal assumptions with underwriting assumptions
Format and Timeframe
The FTG approach is to customize all materials and case studies to reflect the lending environment actually experienced by the participant. Classroom lecture and discussion is supplemented by group exercises to keep the course both fast paced and interesting. This course can be taught in 1 to 1 ½ days depending upon the experience level of the participants.
Who Should Attend?
Newly hired or transferred real estate lending and credit staff
Commercial lending officers
Relationship managers
Private Banking officers
Branch managers
Prerequisites
None
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