Commercial Real Estate
Provide courses necessary to equip a professional - who completes all Learning Path courses and tests - with the credit skills necessary to underwrite a commercial real estate loan request, usually under the supervision or guidance of a Senior Credit Analyst or Credit Administrator, based on an assessment of available hard and soft data.
The underwriting process entails properly identifying:
- The borrowing causes.
- The cash sources of debt service.
- The risks associated with each cash source of debt service.
- The relevant risk mitigants.
Resolutions of these issues, in turn, determines loan structure applicable to the obligor in any real estate transaction.
Although it may not appear so on the surface, a proper understanding and application of the Uniform Credit Analysis (UCA) cash flow statement is critical for successful completion of the Learning Path and its associated certification. The UCA plays an essential analytical role in the underwriting process because the credit assessment of a loan request to finance an income producing property requires a full credit assessment of the business obligor, as well as:
- An assessment of guarantor financial support in a crisis.
- A careful analysis of the income producing property's ability to service the underlying debt on the property, which feeds into the business obligor's cash sources of debt service.
- Courses: 24
- Member Connections: 24
- Non-Member Price: $6,000
If a participant has a demonstrably sound working knowledge of accounting, he or she may skip accounting. However, an accounting refresher is rarely a waste of time and effort, and a sound working knowledge of accounting is essential to successfully understand and master the analytical tools and techniques of commercial real estate risk assessment.
The Credit College Course on Commercial Real Estate Underwriting introduces and examines the sequential steps in the credit decision process outlined by the Financial Regulators - assessment of the borrower, the guarantor, and the income producing property - and the necessary analytical tools and techniques necessary to master each step.
The Credit College Course on Using Federal Income Tax Returns for Ratio and Cash Flow Analysis provides analysts with the knowledge and technical skills to properly use business income tax returns in lieu of accrual financial statements in assessing the risk profile of a borrower.
The single topic Webinars address commercial real estate loan documentation issues in more depth as well as explore the key issues in spreading financial statements and constructing the credit write-up.
Testing / Certification
Every Webinar includes an online, multiple choice review quiz. Every session in a Credit College Series includes an online, multiple choice review quiz. Every Credit College Series includes an online, multiple choice progress check or final exam.
The tests are optional, but they are critical in determining if a participant mastered the material in this Learning Path and, therefore, qualifies for certification as a Credit Analyst / Commercial Real Estate.