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Course Dates
- October 23 - October 27, 2017
(Arlington, VA) Apply Now >>>
Commercial Real Estate Analysis for Financial Institution Examiners, Session 2Federal Financial Institutions Examination Council (FFIEC) and Other Agency Courses
Type of Participant Targeted
The course is intended for commissioned examiners. Attendees should have a working knowledge of commercial real estate loans and risk-management processes.
Course Overview
This course provides in-depth analysis of risk in real estate lending. The course focus includes builder-developer and investor real estate credits, including lot development, residential construction, retail, multi-family, industrial, medical buildings, condo conversions, storage facilities, and office buildings. Emphasis includes various market characteristics, risks often missed by lenders, special issues related to the real estate cycle, proper loan structuring, and collateral evaluation. The class instruction is interactive and based on a facilitation style of teaching centered around case studies and exercises based on actual scenarios.
Course Objectives
At the completion of this course, participants will be able to
- describe the various commercial real estate (CRE) market sector characteristics and identify the risks of lending in those markets,
- discuss concepts for the proper structure of CRE loans to minimize risk to lenders,
- identify effective CRE credit risk management practices that lenders should consider to minimize risk through the term of the loan,
- effectively analyze and rate a CRE credit by assessing the ability of the borrower to repay the loan under the current loan structure and economic scenario,
- apply real estate math concepts to assess the strength of the identified repayment source and validate the appraised value of the collateral, and
- assess CRE market conditions or trends using qualitative factors introduced in the course.
Length
The course is 4-1/2 days. It begins on Monday at 8:30 a.m. and ends Friday at 12:00 noon. The normal class day is eight hours.