MidLantic offer a full range of environmental services through it strategic alliance with Ctgroup Environmental of Eldersburg, MD and its two highly qualified environmental scientists. We can and do offer Phase I services and contract and over sight services for Phase II functions. However, MidLantic is best known for its Environmental Transaction Screen (ETS) questionnaire and property inspection reports that fulfill and surpass the threshold for reasonable due diligence in assessing environmental risk when taking real property collateral. Too often borrowers object to the time and cost of a Phase I or Level I assessment for properties they know or have reason to believe are clean, and policies are never clear on exactly what dictates the need for a Phase I report. Some banks use size of loan as the threshold, which is arbitrary at best.
We have a better solution and a more appropriate product in our Transaction Screen.
Since 2002, MidLantic has provided more than 400 ETS reports to Washington area banks.
What is an Environmental Transaction Screen?
A Transaction Screen is a written 6-8 page report with an attached property and property use questionnaire prepared for the benefit of the client based on a personal site inspection and area reconnaissance. Our inspection includes all lands and improvements as well as abutting properties that establishes one of three things for the client.
- That the property has no recognized environmental concerns (RECs)
- That the property has RECs that are easily remediated
- That the property has RECs or conditions that warrant further investigation
The best reason to use an ETS is that the first two results save you and your borrower both time and money….and we charge only a nominal fee with the third result!
When completed, report includes a 20-question environmental screen questionnaire and a database search in support of our final opinion and recommendations.
Transaction Screen vs. a Phase I Report
The beauty of an ETS is that it can eliminate the need for a Phase I and save significant time and money, both critical issues in all transactions. The downside is that an ETS can determine that a Phase I is required, resulting in more money spent and more time lost. However, the most expensive ETS is usually priced at $1,000 or below and they normally take less than 5 business days to complete. Our highly trained screener knows within minutes of arriving on a site whether to continue with the Screen, and MidLantic will normally bill only for its time when this occurs. Since 2002, this has happened only 3 times. Why? Because, generally, when MidLantic is presented with a request for a screen, it only takes a few minutes and a few quick questions to determine if a property is fit for an ETS.
Borrowers and lenders alike prefer an ETS when appropriate, yet an ETS remains one of the most underutilized tools available to lenders and risk managers. MidLantic, with its two highly qualified and experienced inspectors, can change that.
Please feel free to contact us with any questions you have regarding our Environmental Services and/or you environmental policy.
The RMA Journal; June 2003“In the final analysis, an effective environmental risk management program will enhance shareholder value through loss prevention and should be an integral component of prudent lending practices.”
Order or Discuss an ETS or Phase I Investigation/Report
To order or discuss an investigation or report for your bank, please call Mr. Guy Campion, MAS, Environmental Scientist at 443-398-0955 or e-mail Mr. Campion at guyc@ctgroupenvironmental.com with a brief description of the property. You can also contact MidLantic directly at 410-549-5621. We will conduct initial research in order to properly discuss the scope and then contact you with a proposal or for further discussion of the property and our initial findings.
Sample Reports
MidLantic will gladly provide you a sample of its work for your review and consideration
Please call us or contact us via e-mail. We are also happy to provide references regarding our work product.
Other Important Notes
This service is available to financial institutions only
MidLantic through its affiliation with Ctgroup is qualified to do both ETS and Phase I reports for SBA loans
MidLantic will not prepare an ETS report for any industrial-use building of more than 75,000 sq. ft.
MidLantic is of the opinion that data base reports from several recognized national “environmental service” sources are wholly inadequate for the following reasons:
- Very few clients can interpret the results
- 75% of the information is pointless
- The caveats and disclaimers make them worthless
- Our inspections have pointed out RECs that cant possibly be in a data base, such as old, unregistered heating oil tanks, asbestos materials and the likelihood of lead paint
- These “reports” cost between $125 and $450 depending on the “level” and cost the provider about $35 to produce.
MidLantic reserves the right to decline any request for an ETS report