A CLO’s Guide to Future-Ready Lending

Episode 40 | The Construction Lending Podcast

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Join this insightful conversation with Robert Turbeville, Chief Lending Officer at First Federal Bank. Robert shares his journey from his first job doing roofs in Florida to overseeing a vast portfolio of lending divisions, including commercial, residential, SBA, and specialty banking. Discover how his unique career path shaped his leadership, the dramatic shifts he’s witnessed in the lending industry, and First Federal Bank’s innovative partnerships. The conversation also covers the current trends impacting construction lending, from tariffs and labor shortages to the transformative power of technology and AI, offering a glimpse into the future of the industry.

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Questions Answered

• How has the lending industry, particularly in terms of technology and communication, changed significantly over the past decades?
• Where does construction lending fit into First Federal Bank’s long-standing DNA?
• What are the current trends and challenges impacting the construction lending industry, such as tariffs, labor shortages, and rising costs?
• What are the biggest causes of project delays in construction today?
• How are interest rates impacting construction lending, and what changes might a rate drop bring?
• How has technology transformed construction lending, from plan comparison and inspections to draw processing times?

Episode Recap

Insights on Construction Lending from a CLO’s Perspective

Introduction: The Story Behind the Banker
Robert Turbeville, Chief Lending Officer at First Federal Bank, joins this episode for an enlightening conversation on the past, present, and future of construction lending. With a career spanning decades and a front-row seat to the industry’s seismic shifts, Robert brings practical wisdom and firsthand experience that shines a spotlight on what it takes to excel in today’s market.

From Rooftops to Boardrooms
Not every banker knows the sweat of construction work firsthand, but Robert’s story begins there—literally on rooftops in Florida at the age of 15. The experience instilled in him a deep respect for skilled labor and a determination to pursue a career that combined hands-on industries and finance. Rising through the ranks, he eventually honed a rare skill set bridging both commercial and residential lending. The value, Robert says, was “relationship-oriented” banking—working across departments, providing business and personal lending solutions, and forging connections that would become vital in his move to First Federal Bank.

A Bank Built on Tradition and Transformation
First Federal Bank, Robert’s home for over two decades, boasts a rich history dating back to 1962. Unique among its peers, it remains Florida’s last mutual bank never to have issued stock, operating with a philosophy that values both tradition and strategic innovation. Construction lending, Robert notes, has always been in the bank’s DNA, reflecting its savings-and-loan roots. Today, the bank’s portfolio spans commercial lending, SBA loans, specialty banking, national equipment finance, warehouse lending, and capital solutions, showcasing both diversification and adaptability.

Tariffs, Labor, and Lending Volume
Robert discusses the current pressures facing construction lending. Rising tariffs and labor shortages are driving up costs and contributing to market uncertainty. Robert explains the nuanced conversations happening between banks, borrowers, and builders—especially regarding contract escalator clauses that protect contractors from sudden price jumps, but can place borrowers at risk of cost overruns.

“We’re really having to read contracts closely,” says Robert, “to make sure that the builder and the borrower both know what that person can afford so that they don’t get themselves in a jam.” There’s a delicate balance between protecting everyone’s interests and keeping projects moving forward.

Labor shortages are also a concern, primarily pushing costs higher—even if project delays haven’t escalated as much as anticipated. Interestingly, Robert points to permitting issues, rather than labor constraints, as a primary source of delays in recent months.

The Quiet Power of Technology
Perhaps the biggest game-changer Robert has seen is the rise of technology in construction lending. From the days of Rolodexes, paper files, and face-to-face meetings with briefcases, the industry has evolved to digital platforms, automated underwriting, and remote management. First Federal Bank’s partnership with Land Gorilla is a prime example of leveraging technology—and outside subject matter expertise—for more efficient, secure, and customer-friendly processes.

“Technology has made things like comparing costs a lot easier,” Robert shares, noting an era when manual calculations and out-of-date books were the norm. Automated inspections, digital draw processing, and software-aided cost analysis have dramatically reduced timelines and errors, ultimately improving the experience for borrowers, builders, and lenders alike.

Collaboration, Communication, and Customer Experience
Despite all the high-tech tools, Robert’s message is clear: Open communication and strong relationships remain at the heart of successful construction lending. Proactive outreach, clear educational materials for borrowers and builders, and collaborative problem-solving—even when bringing outside partners in—are as vital now as ever.

Furthermore, First Federal Bank’s subsidiaries, like QRL Financial Services and SBA Works, highlight the bank’s collaborative approach, partnering with credit unions and other banks to provide backbone services and extend expertise beyond their own customers.

The Road Ahead–Predictable, Faster, and Smarter Lending
Looking to the future, Robert expects even more radical advances: streamlined closings, AI-driven decision-making, and enhanced customer self-service will make construction lending faster, more transparent, and more accessible. “Loan decision to closing…will shrink by half,” he predicts, with technology providing answers and guidance in real time.

Conclusion
The construction lending industry stands at a crossroads—shaped by legacy, tested by modern challenges, and propelled by innovation. As this episode reveals, adaptability, relationship-driven service, and embracing technology are key to not just surviving but thriving in a changing landscape.

Whether you’re a lender, builder, or aspiring homeowner, staying informed and partnering with experienced, forward-thinking institutions is your best blueprint for success in construction lending’s next era.

Connections

Rober Turbeville LinkedIn

First Federal Bank Website