Even in the lingering pandemic, it’s clear lenders, builders, and field inspectors are showing great resiliency, adapting to a changing landscape while seamlessly continuing to maintain their operations. The longer COVID-19 stays around, the more likely financial institutions will incur added risk due to potential loan defaults and delayed construction projects.
According to Visual Capitalist, delinquency rates across commercial mortgage-backed securities (CMBS) have tripled over the past three months. In fact, according to an article in The Financial Brand, the delinquencies and downturn of the economy may not see a recovery until 2022.
While some property types, such as hotel and other lodging properties are experiencing great delinquencies, multi-family and office properties have remained more stable. Nevertheless, lenders are facing incredibly uncertain times and unprecedented challenges navigating through these uncharted waters.
Given the current state of the sector, property site inspections continue to be a significant tool used by lenders. By definition, site inspections check commercial properties for maintenance and property conditions – both internally and externally – reporting on the condition and/or occupancy of a property. Additionally, they may also be used to verify building dimensions, conditions, or safety issues. Completed by an independent field inspector, a checklist is used to analyze and assess a property, ultimately helping lenders monitor their investments while ensuring delinquencies are greatly reduced.
Most lenders and financial institutions want to avoid the multitude of expenses involved with a full-time employee, they often outsource the work to national inspection companies like Trinity Field Services. Trinity offers a network of over 10,000 independent field inspectors, nationwide, to provide a bevy of inspection types to visit properties, helping lenders mitigate their risk and providing peace of mind.
In our current state of the industry, banks and financial institutions must continue to evolve and adjust to a ‘new normal,’ ensuring their livelihood and the protection of their properties. Regardless if lenders choose Trinity, their own team member, or another service provider, property site inspections are an invaluable, critical risk-mitigation service tool that provides confidence in a world where not much else is certain.
