CRE non-performing loans and CRE non-performing loan loss severity risk remain a huge concern for commercial real estate lenders, as well as commercial real estate investors and professional liability insurance carriers who have to deal with the inevitable avalanche of investment fraud claims that result when a CRE investment property goes down the tubes. The key to this issue is a sober appreciation of how to reduce or completely prevent future CRE property operating business failures from impacting CRE asset values with an efficient and affordable risk management and proactive mitigation program. Without risk mitigation loss severity risk because that starts the chain reaction that has resulted in the entirety of the CRE finance vertical being made to suffer the consequences owing to a $500 billion per year headache that won’t go away anytime soon. For those who are addicted to simply recalculating their risk exposure based upon changing PD, EAD and/or LGD variables, their failure to address the causal risks makes recalculating the risk exposure cold comfort at best. The market history completely bears this fact of investment out and we all know it.
What CRE lenders and investors have always wanted is to have their loans and investments go through a new underwriting cycle each and every month of the investment holding period to provide advance warning of potential problems coming down the road that could lead to asset impairment. The problem with this solution has been that underwriting takes too long and costs too much to be a solution that was a viable candidate, yet this is the only way forward.
INVIZEN has created a technological advantage that is specifically designed to get at the root cause of the problem – CRE property business operating failures. INVIZEN utilizes proprietary technology to provide the first, true end-to-end, proactive real-time solution that gives us what we want – a comprehensive review and underwriting analysis each and every month and do so affordably (check our pricing page and see for yourself). INVIZEN provides proactive monitoring to help prevent market disruptions (up to 24 months advance notice of potential events that could impact term risk) from creating an unforeseen liquidity crisis that could end in a bankruptcy petition. The INVIZEN system also provides property-level operations monitoring to help ensure that administrative default event issues don’t have to become administrative foreclosure issues.
There’s a whole lot more than meets the eye at INVIZEN, but putting an end to CRE investment loss severity risk is our primary goal. Find out what we can do for your portfolio of loans today by having a conversation with an INVIZEN representative at 832.663.9634.