Cost Effective Solutions for
Community Banks
Construction Loan Inspections
Community banks are a vital component of local economies. They are usually the lender of choice for small businesses. While residential loan underwriting is pro forma, certain aspects of commercial construction loans sometime fall beyond the skill set of loan officers.
Accurate budgets, schedules, and the actual construction methods for complex projects may be new or unfamiliar to the commercial loan officer.
Loan officers are employed to make good loans. Perhaps a better use of loan officers' time is soliciting and making those good loans.
Having a third-party service can protect the bank. Dowler Construction Services will provide services designed to minimize risk to the bank while maintaining or enhancing the bank's relationship with its client.
Risk Mitigation
Risk mitigation is especially important today with increased pressure on net income coming from increased regulation. Ensuring your client's project will be completed on time and within budget is a key first step to ensuring a successful loan maturity.
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Pre-Construction
Dowler Construction Services will assist the commercial loan officer assess the viability of the project by reviewing a loan submittal for completeness of the construction budget and timeliness of the schedule.
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Construction
Once construction commences Dowler Construction Services will perform draw request inspections with detailed reporting of construction progress, accuracy of the draw request, and any issues which may be a concern for the bank. Inspections are reported in a consistent format so there is continuity from report-to-report and project -to-project.
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Loan Renewal
Risk mitigation may also include performing a facility condition assessment (FCA) on client properties which are up for loan renewal. Supplementing cash flow calculations, the FCA identifies deferred maintenance which may become a significant cash drain. This information allows the bank to make a more informed decision about renewing a loan; it may also enhance the bank's image with the client by showing that the client's best interests are held in good trust by the bank.
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Annual SBA 504 Occupancy Verification Inspection
For banks with an SBA 504 loan portfolio Dowler Construction Services will perform the requisite annual inspection and provide a detailed report. Ensuring compliance with the loan conditions by a third-party service provides the bank with the security it needs to prevent an asset from becoming non-performing.
Distressed Property
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Delinquency Inspections (at 60 Days late)
At the request of the bank Dowler Construction Services will complete a Delinquency Inspection to verify occupancy status and property condition within the property service inspection guidelines.
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Non-performing Loans
Should a project become a non-performing loan (NPL) Dowler Construction Services will relieve the bank of the daily concerns of managing an empty asset. From securing
the property, to regular inspections to mitigate any vandalism, to ensuring the property is ready for showings by real estate agents, everything needed to move the property off the NPL ledger will be handled by Dowler Construction Services. Regular reports will be provided to give the bank peace of mind that the asset is not losing any additional value and that it is always going to be in the best showing condition based on the bank's guidance.
Re-positioning
Beyond maintaining a distressed property to prevent further asset devaluation, Dowler Construction Services will assist the bank with creating a re-positioning strategy which may increase the disposition value of the NPL. Identifying potential users, identifying improvements which may enhance the sale of the asset, managing the improvement process, and assisting in the marketing of the asset are all services offered by Dowler Construction Services.
Value-added Services
In addition to the aforementioned direct-to-bank services, Dowler Construction Services can be a vital resource for the bank's commercial customers.
As a partner vendor, Dowler Construction Services can enhance the bank's relationship with its commercial customers. Our suite of services - facility condition assessments, cost segregation studies, tenant retention, increasing NOI, reducing capital expenses, and many more - will demonstrate to the bank's customers that their success is a goal of the bank.
Through improved financial position (and strengthening the bank's risk management position with the customer), and the opportunity for enhanced marketing (loan renewals, loan expansions and referrals), banks can solidify themselves as THE bank with which to do business