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Commercial Loan Review & Due Diligence Services
Loan Due Diligence Services
- All commercial loan types:
- Senior Mortgage, B-Notes, Mezzanine and Equity financing
- Fixed or Floating Rates
- Interest Only or Full Amortization
Loan Underwriting
- Full Commercial / Commercial Real Estate loan underwriting
Collateral Review and Evaluation
- All Property Types – Retail, Office, Hotel, Multifamily, Condominium, Healthcare
and Assisted Living, Commercial & Industrial, Mobile Home Parks, and Land
Acquisition, Construction & Development
- Probability of Default and Loss Given Default assumption evaluation and
calculation for Allowance for Loan and Lease Losses (ALLL) estimates
- Third Party Loan Summary Report preparation includes:
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- Executive Summary
- Property description
- Borrower Information
- Loan Information
- Tranche Report / Capital Stack Review
- Collateral Summary Information
- Operating statement review including cash flow analysis
- Rent Roll analysis
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- Major Tenant review and Analysis
- Escrow analysis
- Reserve analysis
- Appraisal Review and Underwriting Analysis
- Environmental Reports
- Property Condition Reports
- Approval Guideline Exceptions
- Strengths and Weaknesses
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Market and Sub-Market Inspections
- Regional and Local Market and Sub-Market Demographics
- Regional and Local Trends
- Occupancy / Vacancy Rates
- Property Specific Evaluation and Analysis
- Property Capitalization Rate Analysis
- Comparison to Regional and Local Peer Groups
Site Inspections
- Market comparison
- Property specific evaluation – including mechanical, exterior, interior, roofs,
common areas, amenities and more.
- Operating Management Company evaluation
- Quality and condition of properties
- Deferred maintenance analysis
- Insurance and Tax Payment Analysis
- Common Area requirements and analysis
Portfolio Evaluation
- Phased Approach to evaluation
- Phase 1 includes summary stratification and evaluation
- Phase 2 evaluates each loan category and samples property types for priority
reviews of material issues
- Phase 3 is a full due diligence of material categories and property types
Document Inventory Management
Create CMSA document inventory
Inventory current loan documents to this standard
Deficiency review
Collect / correct missing documents
Summarize loan document inventory
Security / Loan Facility Surveillance
- Surveillance activities on credit facilities
- Monthly or quarterly
reporting
- Market analysis of collateral value
- Financial analysis of collateral value
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