Best practices for commercial lenders to set borrower equity requirements on business loans, and consider multiple application factors beyond only viewing collateral characteristics.
INSTRUCTOR: CHARLES H. GREEN
FORMAT: Streaming video/On-demand
DURATION: 57 minutes
SKILL LEVEL: Intermediate Level
AUDIENCE: Loan Officers, BDOs, Relationship Managers, Credit Analysts, Loan Underwriters, Loan Processors, Chief Credit Officers (CCOs), Senior Loan Officers (SLOs), Loan Committee members and other direct lending staff
INCLUDES: Full access as per license option and presentation transcript/slides formatted as user resource.
Course Description
This presentation provides useful information about the determination standards developed and used by lenders to decide the appropriate level of borrower investment or ‘equity’ required to fund projects financed by the lender. The reasoning follows regulated logic that all transaction equity mandates should consider multiple factors of a loan applicant and transaction beyond solely the characteristics of the collateral.
You will be able to:
- Be familiar with regulatory suggestions concerning borrower equity investments and how they should correlate to lender requirements
- Recognize a broad set of factors that should be taken into account by lenders when authorizing loan approval conditioned on borrower equity
- Understand importance of the borrower’s investment in a project so far as protecting the lender’s interest and lowering their exposure to loss
- Evaluate a loan proposal in broader terms that provide for a determination of a suitable level of borrower equity required to balance lender’s risk
Course Contents:
- Two risks that are present in every loan application and must be considered by lender’s underwriting
- OCC regulatory references to borrower equity and the supervisory loan-to-value standards (SLTV) that are recommended as a baseline for lenders
- Steps to ensure that all facets of transaction proposals are accounted for when determining the proper level of equity that’s suitable for lender protection
- Common lender mistakes that subject them to inadequate protection so far as the borrower’s equity, including negotiating the investment or allowing the determination to become a competitive element
- Economic risks vs. borrower’s commitment
- Best practices to protect lenders and keep borrower engaged in transaction success
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- View on any device at office, home or on the road
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- Downloadable presentation transcript & slides
- High quality, streaming video available 24/7
- View on any device at office, home or on the road
ABOUT
CHARLES H. GREEN
Charles Green is an seasoned commercial lender with more than 35 years’ focus on funding the small business sector. He founded and served as President/CEO of Sunrise Bank of Atlanta and has served as a director for several companies.
Green organized SBFI and serves as the Managing Director. In addition, he contributes training course content to SBFI’s curriculum. His previous teaching experience includes the Stonier Graduate School of Banking, Graduate School of Banking at Wisconsin, Graduate Commercial Lending School, as well as online programs for several private enterprises. Read more about Charles here.
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