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How Lenders Use Envirosite Screen to Mitigate Risk

August 2, 2019

The Most Effective Environmental Due Diligence Begins with Screening

In this post, I will share with you some of the top reasons Lenders are using Envirosite Screen to help mitigate environmental risk in their due diligence process. 

Over the past several years, Lenders have been rethinking their methods and approach to environmental due diligence and risk tolerance in respect to commercial loans. As a result of this, alternative environmental review solutions have been cropping up to assist them. Many fall within the screening process, which is usually the first step in their environmental due diligence process. However, some solutions have become far too complicated for Lenders to use efficiently. Therefore, they have to seek out additional professional services during the screening process, which becomes both costly and time-consuming. Envirosite Screen is a new cost-effective solution that can benefit Lenders immediately and is useful regardless of loan size.

How Lenders Are Using Envirosite Screen

As the First Step in Environmental Due Diligence

Lenders are using Envirosite Screen as the initial step in their environmental due diligence process – regardless of loan size. Envirosite Screen provides a more independent and insightful level of data as opposed to solely using an Environmental Questionnaire – which is typically filled out by the owner or occupant of the property and may not fully disclose environmental concerns in and around the property.

Provides Lenders with a Basic Understanding of a Property or Company’s Potential Environmental Risk

By providing a basic understanding of a property or company’s potential environmental risk at the onset of a transaction, Lenders can fill critical preliminary screening information gaps that can help determine the scope of diligence needed and whether the transaction meets risk tolerance. Professionals typically use Envirosite Screen before a Desktop Review, Records Search with Risk Assessment (RSRA) or a Phase 1.

Provides Immediate Information to Site Details

Envirosite Screen is unique in that it gives Lenders immediate access to site/property details. There is no other screening solution on the market that provides this level of instant information to gain insight to a potential environmental concern on a property. This type of information provides professionals with a better understanding as to what level of additional environmental assessments need to take place and can help facilitate a clear dialog across the business regarding potential environmental risk.

Used to Assess Risk for Smaller Loan Sizes

Envirosite Screen is also an ideal tool to include within a bank’s in-house risk management strategy for smaller commercial loans or ones that fall under the specified environmental due diligence threshold. Lenders find that the features and functions of Envirosite Screen allow them to conduct environmental due diligence quickly and effectively.

Who is using Envirosite Screen?
From Commercial Loan Officers, Environmental Risk Managers, Branch Managers, to Credit Analysts and Appraisal Managers, our solution benefits professionals at all levels.

Although the use of environmental screening tools vary with each Lender and are specific to each bank’s environmental review policies and procedures, it is clear that Envirosite Screen provides vital data and can be easily incorporated into best practices for environmental risk evaluations. If you want to learn more about Envirosite Screen sign up for a free evaluation.

TAGS: Screen Environmental Risk Lending


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