WHAT DOES A CREDIT UNDERWRITER DO?

Published: August 30, 2024 - The Credit Underwriter evaluates credit requests, identifies issues, and finds solutions by working closely with C&I Bankers. Prepares accurate loan proposals and performs due diligence, including financial analysis, risk assessment, and industry analysis. Actively participates in loan discussions and communicates decisions confidently to clients, while providing coaching and support to team members.

A Review of Professional Skills and Functions for Credit Underwriter

1. Credit Underwriter Duties

  • Corporate Credit Analysis: Analyze all aspects of corporate credit proposals, taking into account credit and asset risk, including profit and loss and balance sheets.
  • Process Improvement: Continuously identify and suggest process improvements.
  • Project Participation: Attend and participate in projects, representing the team and providing constructive input and feedback.
  • Appeal Management: Deal with appeals/exceptions and escalate where appropriate to the Head of Credit Risk for final consideration.
  • Customer Care Support: Assist and support the Customer Care department in investigations where customers have expressed dissatisfaction with service from the Credit team.
  • Compliance Adherence: Operate in compliance with the Bank’s policies, FCA regulations, legal framework, Bank’s T&Cs, compliance regime, and Sharia principles.
  • Issue Resolution: Handle queries, complaints, and issues emanating from other departments or customers.
  • Team Collaboration: Work as part of the Credit Underwriting team to achieve the goals, objectives, and standards for the Lending Function.
  • Customer Service: Meet members’ needs and demonstrate commitment to the "3 Ps" of member service: Professional Service, Positive Experience, and Personal Touch.

2. Credit Underwriter Details

  • Creditworthiness Assessment: Determine creditworthiness based on the analysis of required and available resources such as credit reporting, company information, and financial statements.
  • Financial Statement Analysis: Meticulously spread financial statements and/or tax returns depending on the size and scope of the deal.
  • Cash Flow Analysis: Examine financial trends to determine if cash flow is sufficient to handle additional proposed debt and payments.
  • Credit Decision Making: Make sound credit recommendations/decisions and structure terms to appropriately mitigate risk.
  • Credit Memo Drafting: Draft and submit thorough credit memos along with recommendations to both Internal and Executive Credit Committees.
  • Timely Feedback: Provide timely and professional feedback to all requests.
  • Customer and Sales Support: Be a valuable resource to both customers and sales staff when additional information is required for underwriting or completion of deals.
  • Accounts Receivable Support: Offer support to the Accounts Receivable Department through ad-hoc projects, sharing credit knowledge, and assisting with high-priority collections accounts.
  • Customer Base Analysis: Periodically analyze the existing customer base for any significant changes that may impact the ability to continue partnership with Velocity Truck Rental and Leasing.
  • Industry and Market Trend Review: Regularly review industry and market trends to better understand the risks and assist in evolving the credit underwriting process.

3. Credit Underwriter Responsibilities

  • Service Level Management: Work within the agreed service levels and departmental standards, proactively engaging with Customers and Sales teams.
  • Documentary Evidence Review: Ensure that the appropriate documentary evidence is received and recorded to make a prudent decision.
  • Application Evaluation: Evaluate Home Purchase Plan applications using policy, experience, and own initiative in decision making, within the Bank’s risk appetite.
  • Decision Documentation: Document the full rationale of either an approval or decline decision and request further information when required from the Sales team or Customers to form a decision.
  • Financial and Property Analysis: Review the customer application and analyze the accuracy and value of the applicant’s financial information and property appraisal to make a credit decision in line with approved levels of authority.
  • Record Keeping: Record and maintain all contact and full audit trails in the sales management system to ensure information is entered correctly and updated where appropriate.
  • Financial Data Interpretation: Interpret basic financial data in accounts with an understanding of profit and loss accounts, balance sheets, and cash flows for Small and Medium Enterprises (SMEs).
  • Knowledge-Based Coaching: Provide feedback and knowledge-based coaching as appropriate to colleagues within the wider business.
  • Cross-Department Collaboration: Work with other departments within the Bank to facilitate the progress of applications.
  • Customer Service: Provide exceptional customer service in line with the bank’s brand behaviors.

4. Credit Underwriter Accountabilities

  • Credit Evaluation: Evaluate credit requests working closely with C&I Bankers, proactively identify issues, and find solutions.
  • Loan Proposal Preparation: Prepare loan proposals and quarterly/annual loan reviews in an accurate, timely, and effective manner.
  • Due Diligence: Perform due diligence on existing and prospective clients to obtain and analyze necessary financial information used in the assessment of risk.
  • Industry and Market Analysis: Conduct industry analysis, market analysis, property inspections (if necessary), risk rating, and stress testing in the preparation of written credit analysis.
  • Meeting Participation: Actively participate in loan discussion meetings with clients, prospects, Bankers, and Senior and Executive Management.
  • Policy Compliance: Adhere to and comply with all Bank policies & procedures.
  • Team Coaching: Provide ongoing coaching and support to other team members.
  • Customer Communication: Confidently communicate to customers on decisions made and potentially obtain further information.
  • Credit Review Writing: Write credit reviews at various levels, taking responsibility for information passed to relevant businesses.
  • Third-Party Communication: Contact third parties to potentially withdraw an approval.
  • Relationship Management: Develop, manage, and maintain a positive and professional working relationship with all corporate customers.

5. Credit Underwriter Functions

  • Policy Compliance: Ensures that applications processed meet the standards as defined in the Merchant Credit Underwriting Policy.
  • Data Entry: Performs accurate data entry on assigned applications.
  • Data Gathering: Gathers due diligence data from various sources, including third-party vendor websites, the Internet, and client-provided data, to make approval/denial decisions within guidelines.
  • Decision-Making: Utilizes due diligence data and Underwriting Guidelines to make recommendations to Sr. Analyst and/or management for exceptions to approval.
  • Documentation: Completes a thorough Review and Exception Form (R&E Form) to provide management with relevant information and recommendations.
  • Communication: Conducts telephone interviews with merchants or Agents when required in accordance with underwriting guidelines.
  • Account Adjustment: Accurately adjusts accounts based on merchant needs/requests.
  • Account Management: Manages all pending and declined accounts daily using department communication methods.
  • Notification: Notifies sales offices immediately through proper channels of any missing information and/or additional documents.
  • Imaging: Ensures that all documentation used to process an application is imaged, including all faxed, emailed, or printed documentation.
  • Account Disabling: Disables merchant accounts as directed by management.
Relevant Information
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