Based on what was discussed during those conversations and my close reading of the guidance, I think the best way to bridge the gap in perception is through welldocumented facts. For example, to support the value of a construction project, the bank would need current information on the project status, including an estimate of the cost to complete.
It would also need documentation of the method of realizing value for the completed project. For instance, if the borrower has a take-out permanent loan commitment, the file should include an update on the status of the commitment including any conditions to closing. If the property is under a sales contract, the bank should document the buyers’ continued willingness and ability to close.