The Rise of the ‘Bond Alternative’
Performance and payment (P&P) bonds have traditionally been the most common method of managing risk in construction lending. But alternative and additional measures are increasingly popular. Although implementation of these measures is not consistent across the industry, they are widely recognized as good practice by various regulatory and government agencies.
The OCC’s Commercial Real Estate Lending handbook was updated in 2013 to better reflect the current state of play and now provides far more comprehensive guidance for construction loan procedures and risk management policies. According to the handbook, the following practices will allow lenders to proactively manage and mitigate risks:
• Careful scrutiny of the plans and budget by a qualified individual.
• Frequent and routine inspections, including inspection reports by architects or engineers who are independent of the borrower.
• Thorough investigations of the financial condition and reputation of the borrower, contractor, and subcontractors.
• Use of effective loan administration procedures.”
Download this white paper to continue reading…
Agenda
Faculty
Joseph (Joey) Bonin, Jr.
Partner Engineering and Science, Inc.
- Atlanta-based principal at Partner Engineering and Science, Inc., headquartered in Torrance, CA
- Practice emphasizes all aspects of commercial real estate due diligence, but especially construction risk management and bond alternative programs
- Conducts regular seminars, webinars, and workshops on construction risk management to members of RMA, NAGGL, AAHOA, GLQC, FLAGGL, and other groups
- Involved in hospitality, multifamily, retail, office, restaurant, resort, condo, student housing, medical, senior living, golf course, marina, warehouse and other commercial construction projects throughout all 50 states, Canada, Mexico, American Samoa, and the Caribbean, including Grenada, Puerto Rico, and Antigua
- Member of RMA (Risk Management Association), NAGGL (National Association of Government Guaranteed Lenders), AAHOA (Asian American Hotel Owners Association), GLQC (Georgia Lenders Quality Circle), FLAGGL (Florida Association of Government Guaranteed Lenders) and ICSC (International Council of Shopping Centers)
- B.S. degree in accounting and M.S. degree in marketing, Louisiana State University
- Can be contacted at 404-852-3767 or [email protected]
All of your training, right here at Lorman.
Pay once and get a full year of unlimited training in any format, any time!
- Live Webinars
- OnDemand Webinars
- MP3 Downloads
- Course Manuals
- Audio Recordings*
- Executive Reports
- White Papers and Articles
- Sponsored Live Webinars
Additional benefits include:
- State Specific Credit Tracker
- Members Only Newsletter
- All-Access Pass Course Concierge
* For audio recordings you only pay shipping
Questions? Call 877-296-2169 to speak with a real person.
Thank You!
Download White PaperMore Program Information
Access to all training products $699/year
Unlimited Lorman Training
With the All-Access Pass there is no guessing what you will need for your yearly training budget. $699 will cover all of your training needs for an entire year!
Easy Registrations
Once you purchase your All-Access Pass you will never be any further than one-click away from attending any Lorman training course.
Invest in Yourself
You haven't gotten to where you are professionally by luck alone; it's taken a lot of hard work and training. Invest in yourself with the All-Access Pass.
