Evaluating CRE Lending Processes: Addressing the Gaps

Commercial real estate lenders have opportunities awaiting them on the other side of the coronavirus pandemic. The projects that your customers take on will be a reflection of the market’s demand—so be sure that you’re prepared to keep up. Evaluating the processes and procedures that go into commercial real estate loans is essential—these questions speak to the CRE lending experience specifically in order to ensure that you’re working most effectively for this portion of your portfolio. Post-pandemic, as businesses evolve, shift priority, or even pivot entirely, you’ll be prepared to face the inevitable change with confidence and ease if you can answer the following questions:

• If you were to audit 10% of your portfolio, what percentage of your loans reconcile correctly?
  • How many have outstanding questions that take awhile for your team to answer?
• What percentage of your portfolio lacks sufficient Interest Reserves to complete the project as currently scheduled?
• What percentage of your portfolio lacks sufficient Contingency to complete the project as currently scheduled?
• When was the last time you did a credit check on active Contractors?
  • Do any of your projects have a Contractor whose risk insurance expires before the scheduled completion date of the project?
• Are you able to accurately and quickly monitor exposure to different asset types and purposes?
  • Are you able to scale that when new business post-pandemic becomes more frequent?
• How long does it take your team to get all of the above information?

Win the best business this year and beyond with Built as your differentiator. A reliable, predictable process that is easy to navigate ensures repeat business. Built reduces friction and increases visibility—and expedites the draw process—which will ensure the best possible experience for your customers. The opportunity cost of time wasted on manual processes can have a major ripple effect not just on your customer relationships, but on your bottom line as well. Implementing Built can enable your team to swiftly manage each aspect of the projects within your portfolio from the highest level down to the smallest detail. And, you’ll be equipped with all of the data captured along the way so that later down the line you can use that to make more informed decisions and build your portfolio.

For more on CRE lending, Built Lending Channel Manager Jim Fraser shares his thoughts on the trajectory of CRE lending in 2021 in our recent blog post. If you’re interested in learning more about how Built can equip your team to manage your commercial real estate portfolio with ease, contact our team today.