Construction Lending Series

Are your construction loans built on a solid foundation — or exposed to hidden risks? Construction lending remains one of the most complex and high-risk areas of banking and each stage presents unique compliance and operational challenges. This practical session will guide you through proven strategies for structuring, documenting, administering, and enforcing both consumer and commercial construction loans. Participants will gain insights into critical risk controls, common pitfalls, and best practices to strengthen oversight and protect institutional interests.

Over the last several years the thickness of an average loan file has grown from being measured in millimeters to inches. This is especially true for residential construction loans. Compliance staff are often responsible for reviewing these loan files either during the underwriting and approval process or in the days after the loan is closed. But with so many regulations governing loan compliance, what exactly should you be looking for? What documents need to be in these files and what are the important things to verify on each? In this jam-packed session we will walk through the construction loan process with sample loan scenarios. We will discuss how to avoid mistakes, dive into the guidance, and review common errors made when preparing construction loan documentation.

Issues with Reg Z are the number one cited violation during regulatory compliance exams, and many of the errors involve TRID. The examiners are diving deeper into your disclosures and processes to ensure you are providing accurate documents to your applicants. What issues are the examiners finding and how can you avoid similar errors at your institution? In this session we will review sample loan estimates for fixed-rate and variable-rate construction loans. In reviewing these documents we will discuss regulatory requirements, dive into the guidance, and review common errors made when completing the loan estimate.

In this session we will move beyond the initial disclosure phase of the loan transaction and focus on the final disclosures required for closing. We will review sample closing disclosures for fixed-rate and variable-rate construction loans. In reviewing these documents we will discuss regulatory requirements, dive into the guidance, and review common errors made when completing the closing disclosure.