Published in Credit Union Journal
As more credit unions venture into the commercial real estate market, having an environmental risk management policy becomes increasingly important for many reasons, including:
- Ensuring the CU is not exposed to environmental liabilities, such as being responsible for the cleanup on a foreclosed contaminated property.
- Avoiding potential losses from not being able to foreclose on a property because it is contaminated.
- Evaluating whether environmental concerns will reduce the value of the property or affect the borrower’s ability to repay the loan.
- Avoiding negative PR involved with a contaminated site.
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