Construction Lenders Navigate Risks Amid Uncertainties

Which way’s the wind blowing for construction finance? It’s hard to say with potential top-of-the-cycle headwinds, pro-business regulatory tailwinds, plenty of unknowns and unpredictable ripple effects, all while the lessons of the recession are still fresh in the minds of many. So what’s an institution to do when there’s so much uncertainty? How does one chart a course? For one, proceed with caution, which is what we are seeing with many lenders hesitant to issue construction loans. But beyond staying in safe harbors, there’s nothing like counsel and conversation with your peers and a healthy discussion of construction risks from all angles, which is exactly what the construction finance community is about to do next week.

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