Description
Assess and resolve distressed or delinquent loans through restructuring, forbearance, repayment plans, or orderly liquidation. Analyze borrower capacity and collateral, negotiate terms, secure approvals, document modifications, and monitor post-workout performance while ensuring compliance with policy, investor rules, and regulations.
- • Evaluate delinquent and at-risk loans to determine workout strategies.
- • Meet with borrowers and guarantors to assess financial condition and hardship.
- • Analyze cash flow, global debt service, collateral values, and guarantor support.
- • Explain options such as modifications, forbearance, repayment plans, extensions, and settlements.
- • Collect and verify financial statements, tax returns, rent rolls, borrowing bases, and hardship documentation.
- • Prepare workout analyses and credit memos with recommended terms and risk ratings.
- • Compute modified payment schedules, amortization, and covenant changes.
- • Draft and review modification, forbearance, and settlement agreements for compliance.
- • Approve workouts within authority; escalate to credit committee when limits are exceeded.
- • Maintain and update workout files and servicing system records.
- • Monitor borrower reporting and covenant compliance under workout terms.
- • Coordinate with underwriting, credit risk, legal, servicing, and collections to execute resolutions.
- • Negotiate terms with borrowers, attorneys, and co-lenders or participants.
- • Contact delinquent borrowers to obtain payments or negotiate repayment plans.
- • Handle borrower complaints and resolve servicing or escrow issues.
- • Order and review appraisals, broker opinions, and collateral inspections.
- • Perform impairment analyses and recommend accrual status, reserves, or charge-offs.
- • Prepare and present watchlist and problem loan reports to management.
- • Ensure accurate setup of modified terms, billing, and escrow after consummation.
- • Track post-modification performance and address re-defaults promptly.
- • Stay current on investor, guarantor, and regulatory workout guidelines and programs.
- • Determine eligibility for government, investor, or insurer loss-mitigation programs.
- • Draft and issue default, demand, and reservation-of-rights letters as authorized.
- • Coordinate bankruptcy, foreclosure, receivership, or deed-in-lieu processes when required.
- • Structure payments and collateral support to reduce loss severity and improve recoveries.
- • Run net present value and recovery scenarios to compare resolution alternatives.
- • Review fees, advances, and escrow balances for accuracy and proper application.
- • Recommend risk rating and accounting designations for modifications to borrowers experiencing financial difficulty, and nonaccrual status per policy.
- • Maintain audit-ready documentation and ensure data integrity for regulatory and investor reporting.
- • Develop referral pipelines with branches, relationship managers, and servicing to identify emerging risks.
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Last reviewed: Jan 2026
