Commercial Lenders

Real estate-backed commercial lending is becoming more and more time-consuming, competitive, and complicated. Burdened by increasingly complex federal and state lending regulations, cobbling together a productive portfolio nowadays seems more a product of long hours, dumb luck, and quick thinking than following a rule book. Don’t be bogged down by the details. It boils down really to only two things: a quality credit and a quality collateral offering.

Federated Environmental uses its decades of experience to facilitate your transactions. Skill lies in making deals work even with less-than-ideal conditions. Book your loans smartly and reap the rewards. If worse comes to worst and any loan fails to perform, recover cleanly.

Small Business Administration-Backed Loans (SBA Loans)

Federated Environmental Associates, Inc. has conducted well in excess of 6,000 Phase I Environmental Site Assessments for SBA 7A and 504 loan programs on real properties nationally over the past 15-years for both the new loan and asset recovery department of bank and non-bank mortgage lenders.

Issued September 23, 2013 and effective January 1, 2014, the U.S. Small Business Administration has issued the revised, updated version of the requirements for the agency’s 7(a) and Certified Development Company (CDC) loan programs. All documentation submitted in support of SBA-backed loans needs to be updated to reflect SOP 50 10 5 (F), not its predecessor, SOP 50 10 5(E).

Specialized Report Formats & Investigative Protocols/Standards

Various larger commercial lender clients, insurance company clients, corporate clients, and Fannie Mae and Freddie Mac have specific report formats and investigative protocols. Federated Environmental regularly completes special report formats and complies with specified investigation protocols. In addition, certain environmental site assessment processes specify numbers of paint, drinking water, radon, and building material samples (asbestos). Federated Environmental completes these specific testing protocols as needed.

Portfolio Asset Ranking Program/Portfolio Securitizations

Federated Environmental’s Portfolio Asset Ranking Program assist the clients in quickly establishing high risk and low risk properties existing within an asset or portfolio pool. High risk properties may be discarded and low risk properties may not require full Phase I Environmental Site Assessments. For a REO portfolio, Federated Environmental provides a review of files and previous reports in order to predict pricing  of remedial activities and outline procedural options (i.e., disposition, options, timing, etc.).

Loan Performance Oversight for Lender Asset Managers

Given the current environmental regulatory framework, it is insufficient for a real estate secured loan to simply “perform.” In addition, to loan performance, lender asset managers must ensure that a collateral property is not being contaminated during the term of the loan. In addition to monitoring the performance of a real estate secured loan, asset managers must manage the integrity of the collateral asset. It is not uncommon for “performing” loan properties to become seriously contaminated, thus devaluing the property, jeopardizing the position of the lender, and putting the borrower in a position of considerable risk from regulatory agencies and adjacent property owners. Federated Environmental offers lender asset managers a “trained eye” when inspecting real estate that is being used as collateral in a secured loan. The balance of the loan amount against the value of the real estate collateral collapses if the property is contaminated through material mismanagement or release(s).