CRE Lending Bootcamp
Using case studies, this two-day virtual seminar (12 hours training total) demonstrates the key variables and concepts for determining CRE cash flow, using the cash flow to determine debt service coverage and estimate the property’s value. Attendees will gain an understanding of the key components of CRE appraisals and the review process involved. A brief overview of key issues involved in commercial construction situations is also provided.
When
Where
Virtual
Highlights
Day 1
- Compare and contrast non-owner occupied (NOO) CRE with owner occupied (OO) CRE
- Net operating income (NOI) concepts and key variables: vacancy, management fees and replacement reserves
- The “new” ratio called debt yield or lender’s yield
- Case study and case study review
- Transaction-level stress-testing of debt service coverage (DSC) and loan-to-value (LTV)
- Capitalizing NOI to estimate and update property value, plus how cap rates work
- Non-financial risks in CRE lending
- Time permitting: Unique characteristics of the major CRE property
types
Day 2
- Brief overview of current regulatory requirements for CRE Appraisals
- Types of reviews: administrative/compliance, technical/
internal, or third party, with sample review checklists - Key appraisal components, including ownership interest, assumptions
and limiting conditions and highest and best use - Appraisal review outcomes: When to request revisions
- Getting another appraiser to do the review under USPAP 3 guidelines
and things bankers can learn from outside/third party review sample
comments - Using your analysis to validate existing or older appraisals, with a
suggested format for documenting conclusions - Overview of guidelines for evaluations when an appraisal is not
required - How appraisers self-regulate via the Uniform Standards of
Professional Appraisal Practice (USPAP), state licensing and
continuing education requirements
The fee includes access to the virtual seminar, program materials and session recordings.
Registrants will receive instructions in advance to access the online class and download the materials. Registrants will have access to a recorded copy of both sessions and materials for 90 days.
IMPORTANT: Registration is per person. All attendees must be registered to ensure access to the program, materials, recorded content and to be eligible to receive CE credit.
Cancellation/substitution requests must be made in writing. Email requests to education@texasbankers.com. Full registration fees will be refunded if written notice is received no later than September 25, 2024. Substitutions are permitted without penalty.
CRE lenders, commercial lenders, portfolio managers, credit analysts, mortgage lenders, private bankers, small business lenders, loan review specialists, special assets officers, lending managers and credit officers involved in the CRE lending process. Support personnel involved in the ordering and reviewing of commercial appraisals will also benefit.
Texas State Board of Public Accountancy: 14 CPE credit hours. There are no educational prerequisites.
Presenter
Richard Hamm
Richard Hamm has been training bankers for more than 30 years, including both creating and teaching courses for the American Bankers Association (ABA) and the Risk Management Association (RMA), plus regional banking schools (Graduate School of Banking – Wisconsin, Graduate School of Banking at Colorado, Southwestern Graduate School of Banking and Barret School of Banking – Memphis), numerous state banking and community banking associations and individual banks