Position Purpose
The Commercial Underwriter underwrites commercial business and real estate loan requests. The underwriter analyzes financial information, borrower and guarantor business and credit history, tenant leases, property condition reports and appraisals, market trends and conditions and recommends loan actions. Analyzes commercial loan applications and renewals and determines credit worthiness and appropriate grading for consideration of the initial loan request and annual risk grading. Assist the sales staff to maximize the cross sales effort as the loan request is being processed. Prepare loans for legal documentation and monitor the closing process. Follow up to ensure timely renewals, reporting requirements, and compliance with First Fed Bank policies and regulatory guidelines.
Essential Functions
- Perform credit analysis and underwrite commercial loan applications received by Relationship Managers to determine eligibility of request, ensuring compliance with First Federal Lending policies and regulatory guidelines.
- Review and evaluate credit data provided by commercial loan requests and analyze annual financial data and sources of financial information to determine profitability and qualification of loan. Based on completed analyses and using approved format:
- Perform all key ratios to determine borrower/project strength and compliance with First Federal commercial credit policies and procedures.
- Analyze loan collateral including property condition reports and overall strength of the borrower/applicant. Recommend the addition of collateral, guarantors, or alternative loan terms or underwriting enhancements as necessary.
- Recommend the terms of conditions and covenants of the Business Loan Agreement for each loan.
- Prepare the loan presentation document to support and evaluate the loan request, determine credit quality for loan grading purposes, make recommendations, and identify the potential risks associated with the proposed credit. Discuss any adverse credit issues with the Credit Administrator.
- Define loan documentation requirements for transactions, review existing loan documentation for validity, in relation to each credit reviewed.
- Ensure all due diligence and background evaluation is complete and thorough before credit approval is granted.
- In coordination with the Relationship Managers prepare the narrative portion of the Credit Memo,
- Ensure that all loan files presented to Loan Committee have been properly reviewed and prepared and are pre-approved prior to presentation by the Credit Administrator and/or the Chief Credit Officer.
- Verify that all the conditions of approval are met and approve/decline any exceptions to the conditions of approval prior to signing/closing.
- Review new loan documentation prior to signing/closing for accuracy and validity, in relation to each loan.
- Perform credit analysis and underwrite existing commercial loan relationships. Key duties include:
- Perform financial analysis of existing borrowers to provide an overall assessment of debt service potential, business financial viability and strength of guarantors for credit support. Such analysis will include cash flow, tax return details, ratio analysis, profit and loss and balance sheet assessments for the borrower and supporting guarantors.
- Analyze the quality of collateral as to value and credit support for current or requested credit transactions. Define perfection requirements for collateral.
- Define appropriate structure and pricing for requested transactions/relationships, including workouts and troubled debt restructures.
- Ensure that all existing credit files are well organized and updated with current financials and other documentation required in the business loan agreement.
- Participate in Credit Committee discussions of presentations as requested by the Credit Administrator and the Chief Credit Officer
- Participate in the Special Assets Committee for Commercial Loans.
- Coordinate with the Relationship Manager and/or their support staff to ensure the required financial information required for the loan is collected from the borrower and prepared in proper format.
- Ensure that Risk Rating Worksheets are prepared in an accurate and timely manner.
- Review all property inspections prepared by the Relationship Managers.
- Perform annual risk assessments on existing credits in accordance with defined policy and schedule. Primary duties include: