b'COVID-19 and Collateral Certainty continued from page 11further, 23 states do not allow anyone but aIn the second bucket are environmentalComprehensive Environmental Response, USPAP licensed appraiser to conclude theassessment products that feature in- Compensation, and Liability ActCERCLA value for a property.As a result, costs andperson site reconnaissance in additionprotection should a historical use of the turn times for this alternative tend to beto the historical and other resources listedasset resulted in a costly environmental a bit greater in these states.Brokers mayabove.The two that conform to ASTMinvestigation and/or remediation effort.do the fieldwork and data collection, butstandard practice are: So, while collateral may be king, be sure to the selection of comparables and valuework with a firm that provides an array of conclusions must be completed and signed1. Transaction Screen Assessment (TSA)valuation and environmental assessment off by a licensed appraiser. or Environmental Transaction Screenproducts because only then can all (ETS); and stakeholders be assured of Collateral Now that the valuation has beenCertainty.done and the loan is properly2. The gold standard of environmental collateralized, a lender can ridedue diligence products the Phase I off into the sunset fully confidentEnvironmental Site Assessment (ESA),Anthony Ramano, the Chief Executive nothing short of a meteor canwhich offers the most comprehensiveOfficer (CEO), joined the eScreenLogic negatively impact the assetshistorical review, of regulatory databaseteam in December of 2018 to lead company collateral value, right? review, owner/operator interview,business strategy and execution.He government file request and review,spent the better part of the last 15 years Wrong! client provided information review andin executive and leadership roles at a detailed visual/physical inspection ofCoreLogic (NYSE: GLGX) and First American While CRE valuation is the most significantthe site property and adjacent properties. Financial (NYSE: FAF), most recently as the step toward collateral certainly; it is notChief Revenue Officer for FAFs Mortgage enough on its own. The second criticalOften an ETS/TSA is called a limitedSolutions Division.Prior to that, Anthony CRE due diligence step that needs toor scaled down version of the Phase I.was a co-founder of CustomerLink Systems, be completed is the environmentalThese reports are a little less costly anda vertically integrated CRM platform assessment.Much like valuation, there arecomprehensive than Phase I ESAs but areservice eventually acquired by Demand many types and scopes of environmentala strong alternative to the RSRA whenForce.He holds a business degree in assessment products, but they can behaving boots on the ground is required.management and economics from sorted into two buckets. The key difference between the ETS/TSASacramento State University.His primary and the Phase I ESA and its a crucial onefocus is standing up a multi-dimensional Inthefirstbucketaredesktoponly the Phase I ESA meets the EPAs AllGo-To-Market organization (marketing, environmental assessments, oftenAppropriate Inquiry (AAI) requirementsales, account management, and business referred to as RSRARecord Searchqualifying lenders and investors fordevelopment).with Risk Assessment.Desktop reports leverage environmental regulatory database information, historical aerial photos, Sanborn/Fire Insurance maps, city directories, and information provided by stakeholders (questionnaires, prior environmental reports, etc.).Once this data is assembled, an Environmental Professional evaluates the findings, writes the narrative, and makes recommendations for further assessment if necessary.Desktop reports are excellent tools for speedy and low-cost evaluation of benign properties (i.e. low-risk assets) and smaller loan amounts.The SBA is the most prescriptive entity in the environmental due diligence space and they allow an RSRA on loans over $150,000 if the property type is NOT one of the 53 environmentally sensitive industries listed in the NAICS codes (North American Industry Classification System).Page 12Fall 2020Points of Interest'