Collateral valuation is a recurring focal point for commercial real estate lenders. Ever more so today.
As the pandemic plays out, CRE collateral monitoring and portfolio risk management needs are greatly magnified because of material changes in market conditions and certain sectors of the economy.
However, small-balance CRE lenders that systemically separate smaller CRE loan collateral from larger assets, and further classify them into risk buckets based on property type, location, and LTVs among other risk attributes will find opportunities to manage collateral valuations more efficiently, faster, and at far lesser cost than with typical Appraisals.
How? By employing Commercial Evaluations. See our guidelines for use, as well as the benefits of Boxwood's FieldSmart Evaluations by downloading the briefing document here or clicking on the icon nearby. Of course, prudent small-balance lenders will keep a sharp eye on the risks of all their CRE loan collateral. We outline a fresh approach to property data collection on a consistent and reliable basis in our next briefing document here or by clicking on the second icon.
Early, energetic assessment of CRE collateral risk begins with a solid grasp of property-level details within the portfolio. Boxwood’s various products and services are geared to support not only clients’ loan origination activity that generates revenue, but also their capital preservation efforts.
Contact us to learn how Boxwood’s FieldSmart Evaluations can help you manage valuation risk and costs.