Commercial Loan Underwriter Job Description [Updated for 2025]

In the world of finance, the role of commercial loan underwriters is becoming increasingly important.

As the economy evolves, the demand for skilled individuals who can effectively evaluate, authorize, or recommend approval of commercial loans grows.

But let’s delve deeper: What’s truly expected from a commercial loan underwriter?

Whether you are:

• A job seeker attempting to understand the core of this role,
• A hiring manager drafting the perfect candidate profile,
• Or simply interested in the complexities of commercial loan underwriting,

You’re in the right place.

Today, we present a customizable commercial loan underwriter job description template, tailored for easy posting on job boards or career sites.

Let’s dive right into it.

Commercial Loan Underwriter Duties and Responsibilities

Commercial Loan Underwriters play a crucial role in the financial industry, using their expertise in finance, business, and risk assessment to evaluate loan applications and determine the riskiness of loaning money to potential business borrowers.

Their primary responsibilities include the following:

• Analyze the financial data of potential borrowers, including income, credit history, and current debts
• Evaluate the potential risks and benefits of loaning money to specific borrowers
• Make informed decisions about whether to approve or reject loan applications based on financial data and risk assessments
• Prepare and present loan proposals to loan committees, including detailed analyses of borrowers’ financial data and explanations of risks
• Work closely with loan officers and loan processors to gather necessary information and documents
• Assess the value of collateral offered on loan applications
• Monitor and comply with all local, state, and federal regulations that pertain to commercial lending
• Review and verify the accuracy of all loan documents before approval
• Maintain up-to-date knowledge of commercial lending practices and industry trends
• Communicate effectively with potential borrowers, explaining decisions and providing advice on improving their chances of approval in the future

 

Commercial Loan Underwriter Job Description Template

Job Brief

We are seeking a detail-oriented and analytical Commercial Loan Underwriter to evaluate and determine the eligibility of loan applications.

Your responsibilities will include reviewing financial information, making loan structures, maintaining loan records, and assisting loan closing procedures.

Our ideal candidate has a strong understanding of business financial statements, risk assessment, and commercial loan products.

 

Responsibilities

• Analyze credit data and financial statements to determine the degree of risk involved in extending credit or lending money
• Evaluate customer records and recommend payment plans based on earnings, savings data, payment history, and purchase activity
• Prepare reports that include the degree of risk involved in extending credit or lending money
• Confer with credit association and other business representatives to exchange credit information
• Complete loan applications, including credit analyses and summaries of loan requests, and submit to loan committees for approval
• Review and update credit and loan files
• Monitor business, economic trends, and evolving regulatory environment to evaluate their impact on loan portfolio

 

Qualifications

• A bachelor’s degree in finance, economics, or a related field
• Proven work experience as a loan underwriter, credit officer, or similar role
• Strong understanding of lending procedures and customer service experience
• Proficiency with banking databases and software, as well as Microsoft Office applications
• Strong analytical and mathematical skills
• Excellent communication and interpersonal skills
• Ability to maintain confidentiality of sensitive information

 

Benefits

• 401(k)
• Health insurance
• Dental insurance
• Retirement plan
• Paid time off
• Professional development assistance

 

Additional Information

• Job Title: Commercial Loan Underwriter
• Work Environment: Office setting with occasional visits to clients’ business premises. Some telecommuting may be possible.
• Reporting Structure: Reports to the Commercial Lending Manager.
• Salary: Based upon candidate experience and qualifications, as well as market and business considerations.
• Pay Range: $68,000 minimum to $102,000 maximum
• Location: [City, State] (specify the location or indicate if remote)
• Employment Type: Full-time
• Equal Opportunity Statement: We are an equal opportunity employer and value diversity at our company. We do not discriminate on the basis of race, religion, color, national origin, gender, sexual orientation, age, marital status, veteran status, or disability status.
• Application Instructions: Please submit your resume and a cover letter outlining your qualifications and experience to [email address or application portal].

 

What Does a Commercial Loan Underwriter Do?

Commercial Loan Underwriters play an integral role in the financial institution they work for.

They are responsible for assessing the creditworthiness of businesses who are applying for commercial loans from their institution.

Their main task involves evaluating the financial information provided by the businesses including their credit history, financial statements, and business plans.

They also assess the risks associated with the proposed loan, taking into account the current economic conditions and market trends.

Using this information, a Commercial Loan Underwriter makes a decision about whether to approve or decline the loan application.

They also determine the terms of the loan, including the interest rate and repayment schedule.

In addition to this, Commercial Loan Underwriters may also be involved in negotiating loan terms with the businesses, providing financial advice, and assisting in the preparation of loan agreements.

They work closely with loan officers, credit analysts, and risk managers to ensure that the loans they underwrite do not expose the financial institution to undue risk.

An important part of a Commercial Loan Underwriter’s job is to maintain a thorough knowledge of the financial institution’s lending policies and procedures, as well as relevant regulations and laws.

They are also responsible for staying up-to-date with changes in the economic landscape that could affect the creditworthiness of businesses applying for loans.

 

Commercial Loan Underwriter Qualifications and Skills

A proficient Commercial Loan Underwriter should have the skills and qualifications that align with the job role, such as:

• Strong analytical skills to assess the creditworthiness of clients by evaluating their financial data.
• Excellent decision-making skills to decide whether to approve or deny loan applications based on an assessment of the risks involved.
• Effective communication skills to liaise with loan officers, clients and other stakeholders, explaining the reasons for approval or rejection of loans.
• Highly detail-oriented to scrutinize financial documents and credit scores to accurately determine a client’s ability to repay a loan.
• Strong knowledge of commercial lending policies, procedures, practices, and regulatory requirements.
• Proficiency in using financial software and systems to manage loan applications and keep track of clients’ financial situations.
• Problem-solving skills to identify potential financial risks and devise strategies to mitigate them.
• Excellent customer service skills to maintain positive relationships with clients, even when their loan applications are denied.

 

Commercial Loan Underwriter Experience Requirements

Entry-level Commercial Loan Underwriters often have a bachelor’s degree in finance, business, or a related field, with some exposure to the banking or financial industry.

This experience can be gained through internships, part-time roles, or academic programs.

Candidates with 1 to 2 years of experience usually have hands-on experience with loan processing, underwriting, or credit analysis.

They may have begun their careers in roles such as Loan Processor, Credit Analyst, or Junior Underwriter.

Candidates with more than 3 years of experience have likely deepened their understanding of credit risk analysis, commercial lending policies, and regulatory compliance.

They are proficient in evaluating business financials, collateral valuation, and borrower creditworthiness.

Those with more than 5 years of experience in commercial loan underwriting are expected to have a solid track record of successful loan closings and risk management.

At this level, they may have leadership experience and could qualify for managerial or supervisory positions within the underwriting department.

Professional certifications such as the Certified Mortgage Underwriter (NAMU-CMU) or Chartered Financial Analyst (CFA) may also be desirable for advanced roles.

 

Commercial Loan Underwriter Education and Training Requirements

Commercial Loan Underwriters typically have a bachelor’s degree in finance, business, economics, or a related field.

Their education generally includes coursework in business law, economics, financial analysis, risk management, and accounting.

They also need a strong understanding of the commercial lending process, including underwriting principles, loan structuring, and risk assessment.

For more senior positions, some employers may prefer candidates with a Master’s in Business Administration (MBA) or a related field, with a focus on finance or lending.

Commercial Loan Underwriters also typically need several years of experience in banking or finance, particularly in commercial lending, credit analysis or a similar role.

While not mandatory, many commercial loan underwriters pursue professional certifications to enhance their skills and employability.

These may include the Certified Commercial Underwriter (CCU) or the Certified Mortgage Underwriter (CMU) credentials.

These certifications require passing exams and demonstrate the underwriter’s expertise and commitment to their field.

Continuing education is also important for commercial loan underwriters, as they need to stay updated on changes in financial regulations, market trends, and new underwriting software and tools.

 

Commercial Loan Underwriter Salary Expectations

A Commercial Loan Underwriter earns an average salary of $74,390 (USD) per year.

However, the actual earnings can vary significantly based on the experience level, location, and the size and type of the employing financial institution.

 

Commercial Loan Underwriter Job Description FAQs

What skills does a Commercial Loan Underwriter need?

Commercial Loan Underwriters require strong analytical skills to evaluate a borrower’s financial information and decide on the risk level of extending a loan.

They need excellent communication skills to articulate their decisions and provide feedback.

Attention to detail is crucial to thoroughly review financial documents and identify any discrepancies.

They also need to be knowledgeable about financial laws and regulations.

 

Do Commercial Loan Underwriters require a specific degree?

Commercial Loan Underwriters typically need a bachelor’s degree in finance, economics, business administration, or a related field.

Some positions may prefer candidates with a master’s degree in business administration (MBA).

Additional training or certification in underwriting can also be beneficial.

 

What should you look for in a Commercial Loan Underwriter’s resume?

Firstly, look for a relevant degree in fields like finance or business administration.

Experience in financial services or underwriting is also crucial.

Check for specific skills like financial analysis, risk assessment, and knowledge of lending regulations.

Certifications like the Mortgage Underwriter Certification can be a valuable addition.

 

What qualities make a good Commercial Loan Underwriter?

A good Commercial Loan Underwriter is detail-oriented, has strong analytical skills, and is able to make informed decisions based on the data provided.

They should have a solid understanding of credit and financial analysis and be familiar with lending regulations.

Good interpersonal skills are also essential as they often need to communicate their decisions to clients and other stakeholders.

 

Is it difficult to hire Commercial Loan Underwriters?

Hiring Commercial Loan Underwriters can be challenging due to the specific skill set required for the role.

The ideal candidate needs to be highly analytical, have a thorough understanding of financial analysis, and be familiar with lending regulations.

Therefore, finding candidates who tick all these boxes can be difficult.

Offering competitive compensation and opportunities for career advancement can help attract top talent.

 

Conclusion

So there you have it.

Today, we’ve unraveled the intricate world of being a commercial loan underwriter.

And guess what?

It’s not just about crunching numbers.

It’s about shaping the financial future, one loan application at a time.

Equipped with our in-depth commercial loan underwriter job description template and real-world examples, you’re ready to take the plunge.

But why stop there?

Immerse yourself further with our job description generator. It’s your springboard to creating precise job listings or honing your resume to perfection.

Remember:

Every loan decision is a part of the bigger financial picture.

Let’s shape that future. Together.

How to Become a Commercial Loan Underwriter (Complete Guide)

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