Commercial Loan Reviewer

Work as a commercial loan reviewer requires the completion of certain duties as listed below:

• Assess the credit risk of commercial loan portfolios via annual reviews of commercial lending departments and products by identifying potential systemic problems such as new production sampling and criticized loans in the portfolio.
• Undertake a review of bank processes like loan approval procedures, policy exceptions, internal controls and underwriting to evaluate credit administration.
• Verify the quality and accuracy of loan documentation such as financials or analysis like performance ratio analysis, debt service coverage and trends.
• Prepare executive summaries of loan reviews and present the appropriate findings to high-level management, Directors Credit Committee and the Audit/Risk Oversight Committee.
• Make suggestions and recommendations on loan policy for updates and revisions and clarify that actual processes are upholding the policy in writing.

Day in the life

A day in the life of a commercial loan reviewer will comprise mostly of undertaking portfolio reviews. He or she has to keep in mind certain factors like risk, size or type of the commercial loan under review and the asset quality.

There might be other tasks that have to be carried out like evaluating a loan for unexpected losses or discovering problems with loans that have some kind of discrepancy. It is the job of the commercial loan reviewer to execute an ongoing evaluation of a bank’s commercial and homogeneous loan portfolio quality and to measuring compliance with established policies and sound lending practices.

Work schedule and typical hours

Commercial loan reviewers work full-time in office environments at professional businesses. There can be occasional travel to other bank branches and off-site vendor locations. One also might have to meet with clients at their home or business on the rare instance. The pace of work might vary – long hours can be expected during peak periods.  The role will involve frequent communication with other loan officers and senior management.

Growth of the job

The US Bureau of Labour Statistics predicts a 14% job growth for loan officer positions from 2010-2020. In the case of commercial loan reviewers, the improving economy will provide a boost in this sector and fuel more hires. Candidates with good networks and established contacts will find the best job opportunities.

The need for loan reviewers varies depending on local market conditions will play a part in determining earning potential, as will the individual’s work experience. Commercial loans are bound to increase as well, with businesses willing to borrow and banks are open to lending.

Typical employers

Employers of commercial loan reviewers include commercial banks – both national or multi-national, credit unions, mortgage companies, and other financial institutions. Employers typically look for potential candidates with prior experience in banking, sales and customer service.

Compensation may vary depending on the employer. Some commercial loan reviewers will have a flat salary while others might be paid on commission.