AIB Course Code: 7803
Course Length: 10 weeks
Course Description:
This course discusses construction loans within financial institutions and emphasizes the relationship between construction issues and risk to the institution. It examines the overall construction process and the documents typically required for loan approval. Each document is reviewed for the financial risk impact on the institution. Also included is an overview of project types and the idiosyncrasies pertaining to them. Specific topics include construction document reviews, construction budgets, soil reports, municipal approvals, loan administration and project closing. Discussions include the loan closing, payment disbursements and title work. The class focuses more on commercial construction, but does include many applications to residential building as well. The topics are specific to construction lending in the United States, but may have some international application.
Audience:
Entry-level commercial banking and small business bankers serving clients with construction needs, managers and loan officers of construction lending groups, and other bank personnel, such as analysts and loan administrators, involved with construction loans.
Learning Objectives:
After successfully completing this program, you will be able to:
- Understand type of construction project management
- Review a construction budget
- Describe the purpose of a soils report
- Understand the impact of municipal approvals
- Discuss the risks within budgets, soils reports, and municipal approvals
- Discuss the construction loan administration process
- Identify potential items of concern for certain project types
- Be familiar with general construction terms and concepts
Textbook:
All reading materials are provided online.
Understanding Your Construction Borrower is a 10-week class taught in the same format as the other AIB Online classes. Participants have access to a new lesson each Friday and will have until the following Sunday (10 days) to complete it. They may complete the lesson anytime during the week. Typically, participants will log on to the Internet two to three times during the week, and may do so whenever and wherever it is most convenient to them.
Topics:
The topics to be covered are as follows:
- Overview of the Course and Orientation to Online Courses
- Construction & Project Management Overview
- Document Reviews
- Construction Budgets
- Soil Reports
- Municipal Approvals
- Loan Administration
- Title Work
- Overview of Project Types & Project Closing
Course Credits: AIB: 2.0
Prerequisites:
None
