Author: Administrator

The Plan and Cost Review/Inspection Process For Construction Loans

Robert Szustakowski, The Lotis Engineering Group, PC Construction loans are significantly different from other real estate loans. On a typical commercial real estate loan, the bank relies on the appraisal and an appropriate loan-to-value calculation. While an appraisal is obtained with the “upon completion” value for a construction loan, it is possible that the final […]

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Should I Be Requesting Environmental Audits?

Robert Szustakowski, The Lotis Engineering Group, PC There is suddenly increased interest in the environmental audit process. There is at least one national bank that is now requiring audits for some energy-related borrowers, the Office of the Comptroller of the Currency published a guidebook for the oil and gas industry and the USEPA is now […]

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YOU NEED TO REGULARLY INSPECT YOUR COMMERCIAL PORTFOLIO

Robert Szustakowski, The Lotis Engineering Group, PC In August, 2013, the Office of the Comptroller of the Currency (OCC) issued their most recent Comptroller’s Handbook for Commercial Real Estate (CRE). Much attention has been paid to the changes made by the OCC related to environmental risk, construction risk, etc. However, a lesser discussed item has […]

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REVIEW OF REGULATORY REQUIREMENTS FOR LENDER ENVIRONMENTAL RISK POLICIES

Robert Szustakowski, The Lotis Engineering Group, PC Recently at the request of a bank client, I summarized guidance documents published by various banking regulators, that is, the Office of the Comptroller of the Currency (OCC), the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Small Business Administration (SBA). Appreciate that I have read […]

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Environmental Risks to A Bank’s Facilities Department

Robert Szustakowski, The Lotis Engineering Group, PC I’ve been bouncing around consulting and within bank environmental departments for about 30 years now. And I have found very few banks consider environmental risks associated with their Facilities Department. I find this odd, as while banks are concerned about lending and/or foreclosing on contaminated properties, they are […]

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Are You Obtaining the Right Level of Pre-Lending Environmental Due Diligence?

Robert Szustakowski, The Lotis Engineering Group, PC Virtually every commercial lender has their own policy regarding environmental due diligence. While there are some basic guidelines provided by the SBA, the FDIC, the OCC, etc., each lender is to determine the appropriate level of environmental due diligence based on their risk tolerance, nature of their lending, […]

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Oh No! The Consultant Suggested a Phase II!

Robert Szustakowski, The Lotis Engineering Group, PC You ordered the Phase I (or Transaction Screen) and you are merrily moving toward closing. You have the appraisal in-hand, you have a good LTV, you have all of the final approvals and your lawyer is working on closing documents. Then it all comes crashing down with the […]

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Environmental Issues for Banks Acting as Trustees

Robert Szustakowski, The Lotis Engineering Group, PC Due to the nature of their business, banks create “walls” between their Trust Department and most other areas of the bank. Even departments that can help the Trust Departments in their day-to-day work, like appraisal and environmental departments, are often not contacted for assistance. However, as the “environmental […]

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