Notice: This curriculum is unavailable until further notice while Risk Management Association (RMA) implements content modifications. Please check back periodically for updates.
An explanation of the types of construction loans, construction lending underwriting and administration issues , and how to recognize the different elements of the construction lending process. Learn the key elements for successful completion of construction projects, and also the special issues involved with homebuilders and subdivision developers.
Produced by the Risk Management AssociationCRE-LDP 6.1 – Types of Construction Projects and Related RisksCRE-LDP 6.2 – The Construction Process, Liens, and Project CompletionCRE-LDP 6.3 – Homebuilders and Subdivision Developers
*Only available as a series
What You’ll LearnIdentify the six general types of construction loansIdentify the additional risks, considerations, and review needed with construction loansExplain the steps in determining the proper administration of a construction loan based on approval conditions, the commitment letter, and loan policies and proceduresIdentify key concerns in reviewing construction contracts, budgets, and site informationCalculate the adequacy of a construction loan interest reserve requirementIdentify best practices in construction and loan documentation and administrationIdentify components of construction loan agreements, surety bonds, permits and zoning, and insurance including steps in processing draw requests and analyzing inspection reportsIdentify key elements for successful completion of the projectIdentify acceptance by the customer, punch list items, payment of retainage to the contractor, and the certificate of occupancyRecognize various segments in the single-family home markets and their characteristicsIdentify the key issues for administering or monitoring builder construction linesBuild a timeline of the development process and identify developer attributes needed to achieve each stepIdentify various types of risk inherent in lending to single-family-home developments, risks from both external and internal sourcesIdentify the key issues for monitoring homebuilder and subdivision loans
After completing this series, students will be able to: