Distressed Commercial Real Estate for Financial Institution Examiners

Distressed Commercial Real Estate assists experienced commercial real estate examiners with evaluating distressed commercial real estate. The goal is to equip examiners with the knowledge needed to assess the financial institution’s method for reviewing appraisals, management’s approach to grading, and loan workout practices. Classroom methods include lectures, work group sessions, and individual problem-solving. Work groups will examine case study scenarios and provide their solutions or suggestions for resolution based upon the given circumstances.

Objectives

Upon completion, participants should be able to:

Collateral Assessment

• Demonstrate how to estimate a revised cash flow after loan origination.

• Identify the impact on the value if the highest and best use of the project has changed.

• Validate the capitalization rate applied in an existing appraisal.

• Utilize models to perform valuation and cash flow scenarios.

• Identify lease clauses that could affect future cash flow.

Credit Analysis

• Evaluate the lender with respect to workout strategies.

• Analyze the project income in support of the loan and the workout strategy.

• Evaluate global cash flow concepts, setting forth expected standards, including verification of financial condition.

• Evaluate the lender’s recognition and handling of deteriorating CRE loans, including exit strategies.

• Monitor ongoing underwriting standards for CRE credits with a focus on troubled credits.

• Assessing Other Real Estate Owned from a safety and soundness perspective.

Who Should Attend?

Content is designed for examiners with extensive commercial real estate lending experience who have already taken the FFIEC or NASCUS Commercial Real Estate for Financial Institution Examiners introductory course. There are only 30 total open seats for this event.