Construction Loan Modifications and Workouts: Key Considerations for Lenders and Distressed Borrowers
Responding to Project Shutdowns and Delays During the Pandemic
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will examine issues presented for construction lenders and borrowers in the wake of COVID-19. The panel will discuss critical concerns for lenders when dealing with financially distressed borrowers and projects that have been delayed or disrupted. The panel will also discuss essential provisions for construction loan modifications and steps to take if the loan goes into default.
Outline
- Impact of COVID-19 pandemic on construction loans and the construction industry
- Effect of stay-at-home orders and other requirements--impact on government inspections
- Communicating with parties to construction project and construction loan
- Pre-workout agreement
- Assessing value of the project post-pandemic
- Optional vs. obligatory advances
- Insurance coverage--property insurance, business interruption, business income
- Lender alternatives in event of default
- Key provisions to include in loan modification agreement
- Specific issues related to construction loans during the pandemic
Benefits
The panel will review these and other issues:
- How has COVID-19 impacted ongoing construction project plans and timelines?
- What are the ramifications for borrowers, lenders, and project valuations?
- What are the primary concerns of the lender and borrower in entering into a construction loan modification?
- How should the lender proceed if a construction loan goes into default?
Faculty
Michael C. Flynn
Co-Chair, Mortgage Banking Group and Financial Services Regulatory Group
Buchalter
Mr. Flynn applies his unique background as the former Acting General Counsel of HUD, and the former General Counsel of... | Read More
Mr. Flynn applies his unique background as the former Acting General Counsel of HUD, and the former General Counsel of PNC Mortgage and Flagstar Bank, to counsel clients on a variety of regulatory, mortgage, consumer financial services, FinTech and real estate matters, including: mortgage and consumer financial services regulatory – advising clients on federal and state legal requirements for originations and servicing, including licensing, TILA, RESPA, ECOA, HMDA, FCRA, TCPA, SCRA, MLA, and LO Comp, and state laws such as the California Financing Law, the California Homeowners Bill of Rights and the New York Financial Services Law; bank regulatory, both state and federal; mortgage secondary market transactions – whole loan sales (bulk and flow) and mortgage servicing rights sales, as well as broker and correspondent lender agreements, among others. Mr. Flynn is a fellow of the American College of Consumer Financial Services Lawyers, and the American College of Real Estate Lawyers. He is the Chair of the American College of Mortgage Attorney’s Residential & Regulatory Committee and serves on the Board of Governors for the Conference of Consumer Law.
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Jason E. Goldstein
Shareholder, Co-Chair Mortgage Banking Group
Buchalter
Mr. Goldstein specializes in resolving complex business disputes for a diverse cross-section of clients, ranging from... | Read More
Mr. Goldstein specializes in resolving complex business disputes for a diverse cross-section of clients, ranging from national banks to insureds, private money lenders, credit unions, individuals, loan servicers, landowners, pharmaceutical companies, vaping companies, equipment finance companies, brokers and investors. He is Co-Chair of the firm’s Mortgage Banking Group, a fellow of the American College of Mortgage Attorneys (ACMA) and a member of the ACMA Title Insurance Committee. Mr. Goldstein has an extensive legal background in state and federal courts across the country, which includes business litigation, real property related litigation, “private money,” title insurance claims and litigation (as well as CGL, D&O, etc.), escrow claims and litigation and misappropriation of trade secrets litigation. He also handles litigation involving wrongful foreclosure, lender liability defense, leases (commercial, residential and equipment), general contractors, receiverships and judicial foreclosures.
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John L. Hosack
Shareholder
Buchalter
Mr. Hosack focuses his transactional practice on commercial real property loan documentation, loan workouts, REO sales... | Read More
Mr. Hosack focuses his transactional practice on commercial real property loan documentation, loan workouts, REO sales and foreclosures. He represents secured lenders and property owners at trial and on appeal in complex real property disputes, including lender liability, fraud, class actions, breaches of contract, wrongful foreclosures, mechanic’s liens, stop notices, judicial foreclosures, receiverships, escrow claims and title insurance claims.
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