“It goes without saying but, before closing any loan, a lender should understand and feel confident about the collateral securing its loan. This is especially true, but a little harder to do when the collateral for a loan is commercial real estate since every piece of commercial real estate comes with its own set of unique issues and corresponding risks. Consequently, prior to closing any loan secured by commercial real estate (a “CRE Loan”), a lender should perform detailed due diligence to both understand and seek to mitigate any risks associated with its collateral. To that end, a standardized, comprehensive method of reviewing and evaluating information regarding the real estate collateral is critical.”
To read the full article click here.