Single Transaction Coverage
Known or perceived environmental liabilities on a property can result in costly delays in the lending process or cause lenders to walk away from a deal. Lender Environmental insurance on a single transaction basis is designed to provide a lender with confidence in funding loans within their appetite that may face environmental liabilities. Coverage provides risk transfer and collateral protection on transaction deals or on loans that do not meet the parameters of a portfolio client’s program.
Submissions and inquiries can be sent to: info@lenderenv.com
Benefits of Single Transaction Lender Environmental
Reduce or eliminate the costs of traditional environmental due diligence
Protect lender assets by protecting against the loss of collateral value
Transfer lender liability on collateral or REO property
Better management of cash flow in the event of a pollution claim
Reduce risk associated with financing certain commercial real estate
Competitive advantage by removing uncertainties and reducing the timeline to get a deal done
Coverage Details
Under a single transaction basis, the coverage is for collateral property or properties securing an individual loan. Coverage is underwritten to both the site environmental conditions and the financial aspects of the loan, including borrower financial strength. Pricing is predicated on limits of liability, policy term, site conditions and borrower strength.
A review and assessment of the environmental and financial risks of the given deal will be needed, including receipt and satisfactory review of:
- An application
- Environmental reports, including regulatory correspondence
- Site appraisal
- Borrowers financials and/or the lenders credit memorandum
Placing Single Transaction Coverage with LEIS
The market for single transaction lender environmental is evolving, with a growing number of carriers offering coverage. The issue is that underwriters all have different appetites and different underwriting guidelines. LEIS can navigate this complex market and help you effectively place the coverage you need given our long history of involvement with this product, our familiarity with the underwriters and our understanding of what lenders want and how to satisfy those needs.