Bauer Commercial Lending School III: Senior Lender
August 13-17, 2018 or April 8-12, 2019
Monday-Thursday: 8:30 a.m. - 5 p.m., Friday: 8:30 a.m. - 12 p.m.
Master skills to help you make sound credit decisions.
Sponsored by Business Alliance Financial Services
COMMERCIAL LENDING SCHOOL REGISTRATION
If you would like to register more than one individual from your organization for our commercial lending school, please contact Jennifer Coppock at firstname.lastname@example.org for an invoice.
Accommodations: A block of rooms has been reserved for this event at the Hilton University of Houston. The special room rate will be available until July 13 or until the group block is sold-out, whichever comes first. | Book your room.
This session is for senior level credit decision makers.
WHO WILL BENEFIT?
Senior level commercial lending executives.
BAFS member price: $2100
BAFS non-member price: $2600
MODULE 1 – STRUCTURING COMMERCIAL LOANS
- Apply the concept of capital structure to ensure the best position for the lender relative to other creditors.
- Analyze and structure term loans through the use of projected cash flows.
- Determine the difference between holding company and operating company lending and intercreditor concerns between senior lenders and other providers of capital.
- Identify options for structuring the successful repayment of a bridge loan.
- Identify borrowing structures and describe their advantages.
- Explain the purpose of commercial loan support.
- Identifying Viable Secondary and Tertiary Sources of Repayment
- Identify sources of repayment that are appropriate for various commercial loan borrowing arrangements and the factors that affect collateral value.
- Explain key issues for assessing various types of collateral commonly used for commercial loans.
- Key Documents, Loan Agreements and Covenants
- Describe the loan documentation process and requirements.
- Explain the best practices for loan closing—preparing, conducting, and following up.
- Loan Pricing and Negotiating
- Describe pricing considerations for a commercial loan.
- Identify and explain the loan negotiation process.
- Explain the role of the business banker in the loan negotiation.
MODULE 2 – CONSTRUCTION LOAN MANAGEMENT
- Understanding the construction loan process, from loan approval through the advance of funds to final repayment (conversion to an amortizing loan)
- Implement and monitor the approved credit facility after loan commitment.
- Procedures to administer and monitor construction loans, including feasibility studies, appraisals and environmental assessments, inspections, draw requests and advances, title insurance and lien issues, certificates of completion, retainages, and warranty issues.
- Formats for monitoring a portfolio of construction loans or builder lines, and key areas that should be reported to and monitored by the lender’s senior management.
MODULE 3 – UNDERSTANDING AND INTERPRETING REAL ESTATE APPRAISALS
- Real estate fundamentals in commercial lending.
- Identify the requirements for appraisals: bank appraisal regulations and guide-lines, independence issues, introduction to Uniform Standards of Professional Appraisal Practice (USPAP).
- Identify the steps needed to order an appraisal, plus considerations in selecting and engaging an appraiser.
- Recognize the basic components of appraisal compliance, the minimum appraisal standards, reporting requirements, and compliance checklists.
- Recognizing the analytical steps in the valuation process used in appraisals; market and property analysis, highest and best use, and valuation approaches, methods, and techniques.
- Determining the rationale for and identify the process used in the cost, sales comparison, and income approaches to value.
- Identify appraisal review issues in the application of the sales comparison approach.
- Identify review issues in the analysis of income and expense, and the selection of the capitalization rate in the income approach to value.
- Identify common errors in appraisals (residential and commercial) and how to communicate with appraiser during the review process.
MODULE 4 – PROBLEM LOAN WORKOUTS
- Identify the costs and causes of problem loans.
- Detect problem loan warning signs.
- Characteristics of a successful workout program, and the five (5) stages of problem loan resolution.
- Determine and evaluate the causes of problem loans.
- Understanding how to review resources, develop a solution, and implement a workout program.
- The unique elements and options of real estate workouts.
- Identify other collection devices such as judgment, levy, garnishment, and prejudgment remedies.
- Understanding the types of bankruptcies and hierarchies of claims.
- Explain the steps in resolving a problem loan.
- Describe the solutions to problem loans — rehabilitation, liquidation, and bankruptcy.
MODULE 5 – LOAN POLICIES AND PROCEDURE, INCLUDING CREDIT RISK RATINGS
- Participants will learn to:
- Describe how a financial institution’s organizational structure affects the lending function.
- Identify the key elements of a credit risk rating.
- Describe the loan review process as an independent validation of risk ratings and other commercial lending issues.
- Loan Packages and Credit Write-Ups
- Participants will learn to:
- Identify typical components of a commercial loan package and memorandum.
- Describe the simpler format, timing, and administration of annual re-views for commercial loans.
MODULE 6 – RESTRUCTURING THE TRANSACTION
The purpose of this module is to provide participants with an opportunity to apply the skills learned throughout the program. Participants will prepare an evaluation of the risk of the relationship, prepare an an analysis of the income statement and balance sheet, create a cash flow forecast for an ongoing business organization, and amend the structure, terms, conditions of lending, and the covenant package. Upon completion of this module, participants will be able to:
- Evaluate the risks and exposures on an actual transaction.
- Prepare a forecast for the company.
- Restructure the facility based on the new information.
- Present a cohesive presentation on the transaction.