How to Become a Loan Workout Officer
Step 1: Understand the job description and responsibilities of a Loan Workout Officer
What does a Loan Workout Officer do?
A Loan Workout Officer restructures loans; works with lending personnel and borrowers to better secure collateral and/or assets of the borrower and to facilitate collection. Works with mid- and large-size loans of medium to high complexity. Being a Loan Workout Officer analyzes financial data and provides required reporting. May specialize in a particular loan type or industry. Additionally, Loan Workout Officer typically requires a bachelor's degree. Typically reports to a manager or head of a unit/department. The Loan Workout Officer gains exposure to some of the complex tasks within the job function. Occasionally directed in several aspects of the work. To be a Loan Workout Officer typically requires 2 to 4 years of related experience.
Loan officers evaluate, authorize, or recommend approval of loan applications for people and businesses.
After collecting and verifying all the required financial documents, the loan officer evaluates the information they obtain to determine the applicant’s need for a loan and ability to pay back the loan.
After the underwriting software produces a recommendation, loan officers review the output of the software and consider any additional information to make a final decision.
A commercial loan workout officer operates in a similar capacity to a traditional loan officer, specializing in business loans.
The job may be separate from the loan officer or may consist of related duties.
Step 2: Learn best tips to become a Loan Workout Officer
Best tips for those who want to become a Loan Workout Officer
Here are some tips to become a Loan Workout Officer.
Step 3: View best colleges and universities for Loan Workout Officer
Best colleges and universities for Loan Workout Officer
- Florida Southern College
- Colby College
- Dartmouth College
- University of Notre Dame
- Western Washington University
- Canisius College
Step 4: Think about whether is it worth to be a Loan Workout Officer
Is being a Loan Workout Officer Worth it?
Provides residential and commercial loan workout and credit administration services.
7+ years of experience as a Credit Officer, Loan Workout /Review Officer, or other related position.
Has responsibility for restructuring adversely-graded loans ("Special Assets"), working closely with officials of lending and borrowing institutions and others….
The Commercial Loan Workout Officer will assume the responsibility for the collections….
Must have at least 7-9 years’ experience in a commercial workout or commercial banking environment.
Step 5: Prepare relevant skills for being a Loan Workout Officer
What skills do you need to be a Loan Workout Officer?
When looking into a role like this one, you need to take account of your skills and abilities. The ability to succeed in this role depends upon the possession of the following skills: Debt Restructuring, Loss Mitigation, Negotiation. Although not always necessary, a grasp of these skills can help: Banking Software, Loan Software. During an interview, try to convey your knowledge of these skills.
A commercial loan workout officer operates in a similar capacity to a traditional loan officer, specializing in business loans.
Four or more years of Portfolio Manager experience in managing commercial loan accounts, preferably SBA loans.
Advanced knowledge of SBA loan structuring, underwriting, documentation, credit and credit risk management.
Moved to Commercial Loan Workout to enhance my skill set and help minimize bank losses during a real estate crises.
Evaluated collateral, loan documentation and financial information to determine borrower s ability to repay and developed repayment action plans accordingly.
Step 6: View average salary for Loan Workout Officer
How much does a Loan Workout Officer make?
The average salary range for a Loan Workout Officer is from $78,944 to $111,398. The salary will change depending on your location, job level, experience, education, and skills.
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Average salary for Loan Workout Officer jobs
Step 7: Find relevant Loan Workout Officer jobs, and apply.
Looking for Loan Workout Officer jobs?
Here are some Loan Workout Officer jobs in the United States.