CFTEA

Commercial Real Estate Lending Decision Core Certificate

$699.00

SKU: 9297 Category:
Code: A6097SP

Description

RMA’s Commercial Real Estate Lending Decision Process is a series of 11 interactive, web-based courses and an optional accounting refresher course that provides a comprehensive study of commercial real estate (CRE) lending, beginning with a description of CRE loan types and progressing to an understanding of the underwriting process, leases, appraisals, loan structures, and related risks.

Prerequisites:  Assumes a basic knowledge of financial accounting and credit analysis.  (An accounting refresher course is offered with this series to assist trainees in re-familiarizing themselves with the necessary skills.)

Who will benefit?  Commercial Lenders and credit analysts who are not real estate specialists but who need to know more about assessing real estate risk.

Q & A / Feedback throughout the course.  Mastery assessment at the end of the course.

Methodology:  Unlike many courses on commercial credit and lending currently available, RMA’s Commercial Real Estate Lending Decision Process, offers:

• Scenario/application-based learning
• Active decision-making as opposed to passive learning
• Adaptability to the needs/skill level of each user
• Modular courses for flexibility in how/when users complete each course

Courses Included:

  1. CRE Lending Overview
    • Choose appropriately between C&I and CRE loans and the analysis framework
    • Match loan need and CRE loan type
    • Identify the loan’s purpose and related use of funds, types of property and collateral, and ultimate repayment source
  2. Risk Areas
    • Identify key risks
    • Answer three questions about property
    • Explain the steps that analyze and mitigate risks
  3. Drivers of Performance
    • Identify the drivers of CRE loan performance
    • Complete a performance checklist
    • Explain which drivers are most critical
  4. Underwriting – Basics
    • Identify best practices for CRE underwriting
    • Explore the component parts of the underwriting process
    • Construct a basic CRE Cash Flow Statement for an office property
  5. Underwriting – Different Types of Commercial Properties
    • Identify property characteristics and underwriting considerations
    • Analyze key differences in income and expenses
    • Explain gross vs. triple net rent structures
  6. Underwriting – Example Calculations
    • Complete NOI calculations
    • Calculate the value based on the cap rate
    • Calculate LTV, DSC and supportable loan amounts
    • Complete stress testing and sensitivity analyses
  7. Appraisals
    • Explain which valuation approach is most relevant
    • Complete an Appraisal Review Form
  8. Leases
    • A tenant’s legal rights, remedies and obligations
    • The key business considerations of lease commitments
    • Priority issues
  9. Environmental Assessments
    • Explain to a customer the environmental assessment process and requirements
    • Identify the level of environmental assessment that is required for a loan request to move forward
    • Determine if further environmental investigation will be required and why
  10. Loan Structure
    • Determine the best structure of a loan request
    • Explain why that structure is recommended
  11. Due Diligence and Documentation
    • Explain the key pre-approval documents required for a loan
    • Identify the key elements of due diligence and closing documentation required for a loan

ABA

2021.04

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