Commercial loans are difficult to oversee, but not because of the complication of paperwork or the contract itself. Rather, it’s difficult to make sure all precedents and agreements are in compliance with the local government and the company. This is one of the main reasons why loan review managers are hired, independently of loan office managers and loan review officers.
The manager assumes more responsibility, whereas officers are limited in what they can do. The manager actually oversees a staff and ensures that bank’s loans are in complete cooperation with local standards. Officers can only report straightforward loans, but review managers have been trained to report the most complex loan situations, as well as high-dollar amount loans.
What Responsibility Does the Commercial Loan Review Manager Have?
Much like the review officer, the manager takes an analytical approach to loan application data. He/she analyzes the loan contract and ensures that no laws or standards have been broken. The review manager stays objective, cautious not to push through the loan until all necessary qualifications have been met. The manager also handles portfolio reviews, for the protection of the company. In business, a balanced portfolio is crucial in establishing a company’s profitability. Other duties might include overseeing creditworthiness, and verifying data for liens, property used as collateral, and repayment.
The review manager wants to see everything in writing, since he or she is responsible for creating an easy “file” for the review of executives, auditors, tax personnel and other financial investigators. Compliance to the rules prevents later problems with tax penalties, bookkeeping mistakes, bad loans, and other preventable issues. Another task is evaluating each loan case by financial statements, by appraisal documents, and essentially auditing this information so that the auditors don’t catch anything scandalous.
How to Excel in a Managerial Role
The skills that will make you an excellent manager in the loan field are accounting knowledge, as well as an enthusiasm to learn the industry’s practices and accepted procedures. The employer who hires you will expect you to know many of these accepted methods, and to possess the problem-solving mindset so that you can direct others. To some extent, these skills can be taught in college. Clearly, a managerial position requires a minimum of a bachelor’s degree in a financial field. In this study course, you will learn concepts behind management, as well as the formulas that control the lending industry.
Management positions do require experience, and a minimum of six or seven years in the loan field is expected. Management experience gives you people-influencing skills, and lends you training in goal setting, motivating others, and setting an example as a leader. Creativity and latitude are frequently cited as human assets that help progress in your career.
This is a well-paying job that averages over $100,000 per year according to the Certified Compensation Professionals HR report. That’s an impressive salary even for a management position and should help to show you the level of responsibility you will be assuming. Let UMD or one of the colleges below help you fulfill your career goals!