As CRE Industry Begins Post-COVID Rebound and Recovery, LGIS Enables Brokers and

ATLANTA–(BUSINESS WIRE)–With COVID vaccination numbers increasing, CRE industry experts are predicting a rapid, resulting market rebound in 2021, and through its Commercial Property Loan Insurance (CPLI) product, LGIS Group (LGIS), is providing a proven tool to help commercial real estate lenders better address emerging market conditions and risk management.

Through its patented commercial property loan insurance (CPLI) product, LGIS provides CRE borrowers and lenders with an effective alternative to the outdated and problematic personal guarantee currently required for CRE loans. In doing so, CPLI provides strong, institutional grade-rated risk mitigation and increased capital relief for financial institutions and non-bank lenders alike. This speedy market return has resulted in a rising appetite and availability for CRE projects. With this accelerated activity and demand, it is imperative for both brokers and lenders to act quickly to take advantage of these opportunities amidst growing interest and competition.

Immediate benefits of a CPLI program from LGIS include:

• Faster modifications on forbearance loans – with many forbearance windows now coming due, lenders must be able to quickly recast or modify these loans in a risk responsible way.
• Better management of loans in default – if a “work out” is not a viable option, CPLI enables lenders a more time- and cost-efficient way to foreclose, sell and collect on any deficiencies, effectively bypassing bankruptcies and discounted pay offs (DPO) to more quickly make the lender whole.
• Stronger risk position in new CRE loans – CPLI provides capital relief while reducing concentration risk.
• Improved customer relationships – lenders gain a competitive advantage in the marketplace as an LGIS/Harris Poll reports that nearly 80% of borrowers prefer a non-recourse repayment option.

“The downturn the commercial real estate industry has experienced as a result of the pandemic has been historic in both the immediacy and scope of its impact,” said David Eichenblatt, President and Founder of LGIS Group. “Fortunately, CRE was fundamentally very strong prior to the pandemic and the underlying structure of the economy remains sound, leading many to predict that the recovery will be an accelerated one in the second half of this year. As such, it is vitally important for all stakeholders in CRE – including financial institutions, non-bank lenders, insurance companies, borrowers and investors – to quickly come off the sidelines and re-engage if they are to capitalize on the opportunity at hand.”

About LGIS Group

LGIS Group is the pioneer of Commercial Property Loan Insurance (CPLI) for the CRE lending industry. Through its patented, institutional grade-rated loan guarantee insurance, LGIS Group eliminates the need for bankers to secure onerous personal guarantees from valued customers when providing commercial loans to fund their development, redevelopment and value-add projects. As a proven risk transfer and mitigation strategy, LGIS Group provides significant capital relief to bankers, empowering them to increase volume and profitability across their CRE portfolios while increasing the customer relationship and deposits. LGIS Group also provides benefits for borrowers by transferring risk, lowering costs and expanding their overall capacity for deals, as well as intermediaries (i.e., mortgage brokers, insurance brokers) by offering an impressive new market and revenue source for servicing customers from a project’s inception to take out. www.lgisgroup.com