A commercial loan workout officer operates in a similar capacity to a traditional loan officer, specializing in business loans. However, the primary difference is that the workout officer restructures loans for clients, helping borrowers to secure better deals for assets and collateral. The job is not a management position but works directly under the commercial loan manager. The job may be separate from the loan officer or may consist of related duties.
Though they still leave more complex loan issues to the manager and reviewer, loan workout officers focus on securing better collateral deals,. The workers of this industry, according to the Certified Compensation Professionals HR analysis report, make an average of $44,857.
What Are the Major Duties of Commercial Loan Workout Officers?
The commercial loan workout officer has the exclusive responsibility of resolving all workouts, including interviewing borrowers and requesting more information for the screening process. As a workout officer, you can request credit reports, reference checks, or even background checks in order to build a quality application. You determine viability and have all of these tools at your disposal. However, you will collaborate with credit analysts and managers to produce the best results. You may also have to consult with interviewers and creditors to ask additional questions about a client’s application.
Among your individual responsibilities are forbearance requests, negotiation of the structure, or other remedies that can help make the contract easier or more advantageous. This immediately suggests the need to study loan theory and finance, including technical aspects of the loan such as the rate of interest, penalty fees, repayment contracts and liquidation rights. After overseeing the application process, you will resubmit your modified forbearance requests for approval and will speak to the Special Assets Committee. In addition to verifying the accuracy of documents, you will also confer with the managing director to strategize new approaches to improve workouts on a one-to-one basis.
Starting Your Career with Higher Learning
This is not a managerial post, but the qualifications are slightly above that of a loan officer. You use your social skills to communicate with lending personnel as well as borrowers, with the intent to acquire superior collateral. Considering that you’re not at the management level yet, you will mostly work with mid size loans though, in time, you can work your way up to more complex transactions.
You should not conclude that it’s going to be easy. Even at the mid-level position, it is recommended you earn your bachelor’s degree. Work experience is also a valuable commodity to your employer, and four or more years in a related field would probably put you in contention. Becoming familiar with the loan industry and studying the company’s policies and systems already in place will prepare you for the journey ahead. In the meantime, cultivate your creative skills and leadership and organizational strategies. This is a job for someone that wants to help people succeed, but who understands the bottom line; someone who can be trusted as a worker of good business sense.