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Borrower Equity Requirements

Best practices for commercial lenders to set borrower equity requirements on business loans, and consider multiple application factors beyond only viewing collateral characteristics.

CHG-03

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.

ACCESS VIDEO TRAINING

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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SINGLE USER
  • This course provides a 7-day license
  • Unlimited viewing by one (1) individual user
  • Downloadable presentation transcript & slides
  • High quality, streaming video available 24/7
  • View on any device at office, home or on the road
  • No membership dues or travel req.
  • All courses count toward future credential awards
BUY NOW – $79
GROUP USER
  • 7-day license for unlimited viewing in single location
  • Or, viewing for up to fifteen remote individuals (fwd. name/emails to Registration@SBFI.org)
  • Downloadable presentation transcript & slides
  • High quality, streaming video available 24/7
  • View on any device at office, home or on the road
  • No membership dues or travel req.
BUY NOW – $349
ADDITIONAL SITES
  • Additional site license for larger organizations
  • Register individuals over group site limit defined at left
  • Requires at least one Group Registration
  • Downloadable presentation transcript & slides
  • High quality, streaming video available 24/7
  • View on any device at office, home or on the road
BUY NOW – $59

ABOUT
CHARLES H. GREENCharles 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.

How Do I Get Started?

When you buy, you’ll be connected directly to our video training page login to register ID & payment information and can access video training immediately. Your license enables you to return and watch the video an unlimited number of times during the license period.Video training can be accessed anytime at: https://training.sbfi.org/signup/

FAQs

Search our FAQs for answers to other questions you may have here.

Refunds/Exchanges

We want you to be satisfied with the presentation you select, but if you’re not, we’ll gladly replace it with a more suitable program at no charge. Email Support@SBFI.org

Video License

Your license enables you to return and watch the video an unlimited number of times during the license period. Streaming video training is subject to our Video License Agreement. Please see more details here. For questions about the limitations of our video license, contact us at Support@SBFI.org.

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