Guest: Mike Kosmoski

Mark and Mike try to demystify one of the complex and rewarding lending areas that can also be filled with pitfalls and peril if not done properly. Learn a bit about Mike’s construction management history and what support exists for construction lending at credit unions.


  • [01:50] Mike shares his education and professional background.
  • [03:14] Mike outlines the various services LCS provides.
  • [09:52] What was the construction industry like during peak-pandemic?
  • [13:43] How does the construction industry handle inflation uncertainty and the different types of construction management agreements?
  • [19:13] Mike describes the steps LCS takes to produce a risk report on the construction project and discusses difficult conversations when the review substantiates that a project cannot be built for the bid.
  • [24:41] How do draw management and a draw inspection protect the owner?
  • [30:10] Mike explains why a property condition report can assist lenders. 
  • [33:16] Mike relates a nightmare story costing $200,000.


  • Construction lending creates value for a community. At the same time, properties in disrepair define that community. New construction projects contribute to society.
  • Some people are intimidated by construction lending because they are risk-averse. However, with proper oversight, many problems can be avoided.
  • Lenders should get assistance from a lender consulting firm at the project’s conception and before funding to avoid costly mistakes.


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After a long career in construction management, Mike Kosmoski joined Lender Consulting Services in 2020 to head up the construction lending management division. Lender Consulting Services, Inc provides Risk Management Solutions for Environmental, Construction, and Valuation Due Diligence to Lenders nationwide. Headquartered in Buffalo, NY, the firm has assisted Banks, Credit Unions, Pace and Alternative Lenders, Developers and Corporations for almost three decades.

Mark Ritter is the CEO of MBFS and an expert in credit unions and business lending. His primary role at MBFS is overseeing the strategy of helping credit unions assist members with business needs and consulting with credit unions on planning the delivery of services to their membership.

Mark Ritter Website

Mark Ritter on LinkedIn