Environmental Due Diligence, reimagined for lenders
Replacethe Phase I bottleneck with an insurance solution that delivers 80–90% of thesame information in 2–3 days — and provides the financial protection a Phase Inever could.”
The Problem
Phase I ESAs Have Two Critical Weaknesses
Most commercial real estate lenders are exposed to environmental loss in the event of borrower default. If contamination is discovered and a property must be foreclosed on, the bank can face significant cleanup costs and collateral impairment.
Operational Delays
A Phase I takes 4–8+ weeks to complete, frustrating borrowers and slowing loan closings. Environmental bottlenecks delay deals, damage lender relationships, and cost you business.
Zero Financial Protection
A Phase I is backward-looking and informational only. It provides no financial protection if existing contamination is missed, or if contamination occurs after the loan funds.
LP3: The Better Alternative
LP3 replaces both problems with a single solution — a comprehensive desktop study completed in days, backed by a parametric insurance policy providing real financial protection for the full loan term.
Importantly, lenders are not legally required to perform Phase I assessments. Most do so out of internal habit, not regulation, which can create a costly process that delays closings without transferring risk.
The Exposure:
Lenders face significant cleanup costs and collateral impairment if contamination is discovered following foreclosure, yet traditional diligence provides no actual risk transfer.
HEAD-TO-HEAD
Traditional Phase I vs. LP3 + VERAcheck™
OUR PRODUCT SUITE
The Right Product for Every Transaction
Lendiligence offers two distinct environmental insurance solutions to cover the full spectrum of commercial lending scenarios.
Regulatory Compliance & CERCLA Protection
The LP3 program is designed to meet Federal Banking Requirements established by the Office of the Comptroller of the Currency (OCC) and other regulatory bodies. By providing a comprehensive environmental risk assessment coupled with financial protection, LP3 enables lenders to satisfy regulatory due diligence obligations while protecting the CERCLA Secured Creditor Exemption.
OCC Compliant
Meets federal banking requirements for environmental due diligence
CERCLA Protection
Safeguards the Secured Creditor Exemption through mortgage assignment
10% Coinsurance
Lender retains minimal skin-in-the-game while transferring 90% of risk
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Transforming Environmental Risk into Financial Certainty
Get Started
Ready to modernize your environmental due diligence?
800-685-8185
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