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. Work groups will examine case study scenarios and provide their solutions or suggestions for resolution based upon the given circumstances. Classroom methods will include lectures, work group sessions and individual problem solving.
Content is designed for examiners with extensive commercial real estate lending experience.
The length is four and a half days.
| At-a-Glance | |
|---|---|
| Length | 4 ½ days |
| Delivery | In-Person |
| Prerequisite/Pre-course | Yes |
| Continuing Education | Yes |
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 focus on troubled credits.
- Assessing Other Real Estate Owned from a safety and soundness prospective.
Target Audience
The course is intended for seasoned examiners with an extensive background in reviewing and analyzing commercial real estate.
Prerequisites
Participants are required to complete Commercial Real Estate Analysis for Financial Institution Examiners (CRE).
Continuing Education
Annually the class is assessed for continuing professional education credits.
2026 Approved Credit Hours: 30.8