Environmental Risk Reviews is another type of limited review developed by PM for our clients. The scope of work for an ERR is intended to be very flexible and efficient to keep costs low and turnaround times as quick as possible, yet still provides the necessary information. The report also provides a Risk Summary Analysis, which describes potential costs a lender could incur if they foreclose.
A typical ERR scope of work is a site visit, interviews, database and historical sources (aerials, Sanborn maps and city directories). However, the scope can include any combination of the following:
- An interview with the owners/occupants. Or a site reconnaissance, at which time owners/occupants would be interviewed.
- Review of Regulatory Databases for the subject properties and nearby surrounding areas.
- Review of any previous environmental information (i.e. correspondence, reports, etc.) provided by the bank or the borrower (if any).
- Review of pertinent historic sources including aerial photographs, Sanborn Fire Insurance Maps (if available) and city directories.
- Review of reasonable ascertainable Assessing, Building, and Fire Department records.
- Review of utility connection information.
- Completion of a letter report summarizing this information.