Torchora
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Key Responsibilities and Required Skills for Loan Review Specialist

💰 $65,000 - $95,000

BankingFinanceRisk ManagementCompliance

🎯 Role Definition

As a Loan Review Specialist, you are the guardian of our institution's credit quality. You will independently evaluate individual loans and the overall loan portfolio to identify potential risks, assess compliance, and ensure the accuracy of risk ratings. Your detailed findings and objective recommendations will be instrumental in guiding the bank's credit risk management strategy and safeguarding its assets. In this pivotal role, you will apply your deep understanding of credit principles to ensure the safety and soundness of our lending operations.

📈 Career Progression

Typical Career Path

Entry Point From:

  • Credit Analyst
  • Commercial/Consumer Underwriter
  • Loan Officer

Advancement To:

  • Senior Loan Review Specialist
  • Loan Review Manager
  • Credit Risk Manager

Lateral Moves:

  • Internal Auditor
  • Compliance Officer

Core Responsibilities

Primary Functions

  • Conduct comprehensive and detailed reviews of commercial, consumer, and real estate loan portfolios to assess credit quality and identify potential risks.
  • Evaluate the adequacy and accuracy of loan documentation, ensuring full compliance with internal credit policies, procedures, and external regulatory requirements.
  • Analyze borrower financial statements, tax returns, cash flow projections, and collateral valuations to independently determine repayment capacity and validate risk ratings.
  • Prepare detailed, well-written reports summarizing review findings, including identified credit weaknesses, policy exceptions, and clear, actionable recommendations for management.
  • Assign, validate, and challenge risk ratings for individual loans and overall portfolio segments in accordance with the bank's established risk rating methodology.
  • Monitor and track the resolution of identified issues and exceptions, verifying that appropriate and timely corrective actions have been implemented by the lending staff.
  • Assess the overall effectiveness of the bank's credit administration function, underwriting standards, and portfolio management practices.
  • Communicate review findings and recommendations effectively and professionally to relationship managers, credit officers, and senior management in both written and verbal formats.
  • Stay current with evolving banking regulations, accounting principles (GAAP), and economic trends that may impact the loan portfolio's risk profile.
  • Perform targeted reviews on specific industries, loan types, or portfolio segments that exhibit heightened or emerging risk characteristics.
  • Evaluate the adequacy and methodology of the Allowance for Loan and Lease Losses (ALLL) or Current Expected Credit Losses (CECL).
  • Assist in the preparation for and coordination of external audits and regulatory examinations pertaining to the loan portfolio and credit risk functions.
  • Review new loan originations, renewals, and modifications for adherence to underwriting guidelines and confirmation of appropriate approval authorities.
  • Assess the quality, depth, and accuracy of credit analysis performed by loan officers and underwriters at the time of origination.
  • Identify and report on negative credit trends, concentrations of credit, and other emerging risks within the loan portfolio to facilitate proactive risk management.
  • Validate the integrity of credit data within the core loan system and other related databases to ensure accuracy in risk reporting and portfolio analysis.
  • Conduct post-closing reviews to ensure loans are booked correctly and all required documentation is present and properly executed.
  • Participate in due diligence for potential merger and acquisition targets by assessing the credit quality of their loan portfolios.
  • Review and test the bank's lending policies and procedures to ensure they are current, comprehensive, and effectively mitigate key risks.
  • Ensure all loan review activities are conducted with a high degree of independence and objectivity, maintaining the integrity of the function.

Secondary Functions

  • Assist in special projects and targeted portfolio reviews as requested by senior management, the Board of Directors, or the audit committee.
  • Provide feedback and contribute to the continuous improvement of the bank's lending policies, procedures, and risk rating methodologies.
  • Collaborate with credit administration and lending departments to provide training and guidance on best practices, regulatory changes, and policy updates.
  • Support internal and external auditors and regulatory examiners by providing requested documentation, analysis, and explaining loan review findings.

Required Skills & Competencies

Hard Skills (Technical)

  • Credit and Financial Analysis: Deep expertise in analyzing complex financial statements, cash flow models, and collateral for both commercial and consumer borrowers.
  • Loan Documentation Review: Thorough knowledge of loan agreements, security instruments, and other legal documents required for various loan types.
  • Regulatory Compliance: Strong understanding of banking regulations including Regulation B (ECOA), Regulation Z (TILA), BSA/AML, and fair lending laws.
  • Risk Rating Methodology: Proficiency in applying and validating internal risk rating systems and methodologies.
  • Lending Principles: In-depth knowledge of Commercial & Industrial (C&I), Commercial Real Estate (CRE), and/or consumer lending products and underwriting standards.
  • Microsoft Office Suite: Advanced proficiency in Microsoft Excel for data analysis and modeling, and Word/PowerPoint for report generation and presentations.
  • Core Banking Systems: Familiarity with common core processing systems (e.g., Fiserv, Jack Henry, Finastra) and loan origination software.
  • ALLL / CECL Knowledge: Understanding of the principles and methodologies behind calculating allowances for credit losses.

Soft Skills

  • Analytical and Critical Thinking: Superior ability to dissect complex information, identify root causes of issues, and draw logical, evidence-based conclusions.
  • Written Communication: Excellent ability to articulate complex findings, risks, and recommendations in clear, concise, and professional written reports.
  • Attention to Detail: Meticulous and thorough in all aspects of work, ensuring accuracy in analysis and reporting.
  • Objectivity and Independence: Ability to maintain an unbiased perspective and professional skepticism when evaluating loans and processes.
  • Interpersonal & Communication Skills: Confident and articulate in presenting findings to various stakeholders, including senior leadership, while maintaining professional and collaborative relationships.
  • Time Management: Proven ability to manage multiple concurrent reviews, prioritize tasks, and meet established deadlines in a fast-paced environment.

Education & Experience

Educational Background

Minimum Education:

  • Bachelor's Degree

Preferred Education:

  • Master's Degree (MBA) or relevant professional certification (e.g., Credit Risk Certification - CRC, Certified Anti-Money Laundering Specialist - CAMS)

Relevant Fields of Study:

  • Finance
  • Accounting
  • Business Administration
  • Economics

Experience Requirements

Typical Experience Range: 3-7 years

Preferred:

  • Direct experience in a loan review, credit analysis, commercial underwriting, or bank examination role within a regulated financial institution. A background as a commissioned bank examiner is highly desirable.
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