Construction lending has many facets and requirements that must be
considered, from safety and soundness guidelines to compliance considerations.
This can make residential construction loans difficult and risky. Many issues
can occur during construction, leaving lenders highly exposed, so understanding
the risks is essential. This session will cover underwriting issues, compliance
requirements, and special documentation needed for residential
construction-to-permanent lending – from start to finish! Checklists and sample
policy language will be provided.
considerations (maturities, advances, LTV issues, appraisal guidelines, etc.)
Construction contract/agreement with the borrower
considerations for various scenarios, including single close/multiple close and
single disclosures/multiple disclosures
- How to handle and document requests
for advances, draws, and disbursements
- Regulatory compliance (flood, TRID,
Ann Brode-Harner, Brode Consulting Services, Inc.