Lenders Have A Laundry List Of Construction Loan Concerns

Law360, St. Paul, Minn. (November 1, 2019, 5:13 PM EDT) -- Construction loan documents have gotten longer and more complex as lenders react to changes in Washington and seek to protect themselves from potential loss in what's now a decade-long real estate upcycle, a Winthrop & Weinstine lawyer said at a conference in Saint Paul, Minnesota, on Friday.

Borrowers and lenders routinely negotiate various aspects of construction loans, from rights to make changes to the project to the ability to lease out the property. While such negotiations add additional layers to loan documents, banks also have to be aware of federal regulations on high-volatility loans and even have to keep tabs on...

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