Description
Notice: This curriculum is unavailable until further notice while Risk Management Association (RMA) implements content modifications. Please check back periodically for updates.
An overview of the different types of CRE loans and the importance of;providing the right loan for both the borrower and the bank. The series will also help identify the risk areas in CRE lending and help analyze the drivers of CRE performance.
Produced by the Risk Management Association
Courses*
*Only available as a series
CRE-LDP 1.1 – Types of CRE Loans
CRE-LDP 1.2 – Risk Areas and Drivers of CRE Performance
What You’ll Learn
After completing this series, students will be able to:
Evaluate the differences between commercial and industrial (C&I) and CRE loan categories
Identify how C&I, CRE, and owner-occupied loans fit into the credit decision framework
Define and describe the characteristics and purposes of the four primary types of CRE loans
Identify the loan’s purpose and related use of funds, type of property and collateral, and ultimate repayment source
Explain repayment source co-dependence
Identify the risk area of CRE lending
Analyze the drivers of CRE performance
Identify the drivers of CRE loan performance and apply the CRE Drivers of Loan Performance checklist to an actual loan
Identify the three primary areas of loan performance risk (operational, market, and credit risk)
Identify which of the three primary areas of risk the bank can influence and steps lenders can take to influence those risks
