Manager Member Credit Risk Job Details

Position Summary

The Manager Member Credit Risk manages the member credit analysis function (including advances underwriting and approval); the vendor and service provider credit analysis function; credit risk management aspects of the Bank’s asset purchase programs; credit and collateral policies and risk analysis processes for collateral (including collateral discounts and valuation processes); and coordinates the cataloguing and resolution of Internal Audit findings and FHFA examination findings.  The incumbent also is the Department’s primary liaison with the ERM Department for the purpose of cataloguing, documenting, and validating models used in the Credit Department, including DebtX, LEVELS, CRSS and CUCRSS; and for ensuring that the Bank’s member credit risk management processes are consistent with best practices and incorporate quantitative risk management techniques wherever possible. 

The Manager Member Credit Risk is also responsible for the development and maintenance of the Bank’s asset classification rating system and methodology for determining the adequacy of loan loss reserves.  The incumbent is responsible for developing and maintaining adequate policies and procedures to support the above functions, including coordination of Sarbanes-Oxley narratives for managed functions.  The Manager Member Credit Risk acts in the capacity of the FVP/Director of Credit when the FVP/Director of Credit is away from the Bank. 

The incumbent is also responsible for: preparing the monthly Credit Committee minutes; preparing updates and amendments to the Products Policy and credit-related sections of the Risk Management Policy for management review; monitoring and reporting on market conditions in the world, national and regional economies that may affect the credit risk profile of the Bank’s assets, including member advances; development and maintenance of the Bank’s Member Failure Plan; and the credit-related portion of the determination of the credit risk-based capital requirement for reporting to the FHFA on a monthly basis.

The incumbent works closely with the FVP/Director of Credit and other staff to continuously improve the practices, controls, and efficiency of the department.  The incumbent is the Department’s primary manager of projects and new initiatives related to credit risk management.  The incumbent works closely with the other staff in the Credit Department and the Bank to complete assigned research projects.

Specific Responsibilities

• Develop and maintain policies and procedures that ensure that credit risk is managed and mitigated in a manner appropriate to the Bank’s credit risk appetite in accordance with industry best practices for credit risk management.
• Supervise the credit analysis staff and ensure that credit reviews of members, vendors, and service providers are completed in a timely and comprehensive manner according to Department procedures ands schedules;
• Elevate credit issues and credit status changes to FVP/Director of Credit and Credit Committee for review and approval.
• Develop and maintain methodology for collateral risk management policies, in particular collateral valuation discounts.  Provide assessments regarding the eligibility and appropriate discounting methodology of new forms of collateral when necessary.
• Develop and maintain policies and processes to manage the credit risk associated with the Bank’s asset purchase programs, including supervision of the Credit Products Manager and oversight of the Supplemental Quality Control function.  Develop and maintain appropriate methodologies for determining the adequacy of loan loss reserves.
• Maintain the inventory of models used by the Credit Department, and serve as primary liaison with ERM to ensure all models are validated in a timely manner as required by FHFA and Bank guidelines.
• Plan and execute the timely completion of research and other special projects on topics related to the credit risk of the Bank, as assigned by the FVP/Director of Credit and senior management.
• Prepare the minutes of the meetings of the FHLB’s Credit Committee, and the President’s executive summary, for the FVP/Director of Credit and the Credit Committee.
• In concert with the FVP/Director of Credit, prepare analyses and updates as necessary to the Bank’s Products Policy, and to the credit section of the Bank’s Risk Management Policy and Risk Management Internal Policy, for review and approval by Credit Committee, senior management, and the board of directors.
• Manage documentation and resolution of Internal Audit and FHFA examination findings.  Marshal resources from within and outside the Department to resolve findings.
• Analyze information from a variety of sources, including NRSROs, business news media, government agencies, and private research organizations on topics that may affect the credit risk profile of the FHLB’s assets.  Prepare white papers on topics with potentially significant impact on the FHLB’s credit risk profile for the use of the Department, senior management, and/or the board of directors.
• Calculate the FHLB’s Credit Risk-based Capital requirement on a monthly basis for reporting to the Federal Housing Finance Board, in accordance with FHFB regulation 12 CFR §932.4.  Work with other Departments of the Bank, as necessary, to ensure that the calculation is accurate and efficient.
• Supervise and administer all personnel issues relating to credit analysis.

Qualifications

Knowledge/Skills

• Attention to detail – Must have a commitment to accuracy, striving for an error-free environment.
• High level of professionalism, discretion, judgment, and initiative.
• Working knowledge of Generally Accepted Accounting Principles (GAAP) with respect to bank financial statements, loan loss reserves, and investments (including FAS 5, FAS 114, FAS 115, FAS 140).
• Working knowledge of secondary mortgage market, including GSEs and private label issuers.
• Ability to understand and critically evaluate the financial condition of financial institutions (both domestic and foreign), securities firms, and insurance companies.
• Ability to develop policies and procedures that ensure efficient credit risk management processes while allowing the Bank to take advantage of appropriate business opportunities.
• Excellent management and organization skills.
• Excellent research skills, including information gathering and business writing.  Strong ability to quickly absorb and articulate new and/or complex business and economic concepts.
• Excellent oral and written communication skills.
• Ability to work effectively under pressure with minimal supervision.

Education

• A masters’ degree in finance or equivalent. 

Experience

• 5-10 years experience with credit risk management, with an emphasis on written analysis and trend monitoring, preferably in a bank environment.  At least two years in a management capacity strongly preferred.
• Experience with the monitoring and analysis of bank financial statements, call reports, and SEC financial reports (including Form 8, Form 10).
• Strong familiarity with the regulation and financial analysis of banks and insurance companies in the United States.
• Familiarity with “best practices” credit risk management techniques.
• Familiarity with secondary market valuation techniques for commercial or residential mortgage loans.
• Good working knowledge of business computing, Microsoft Word and Excel, and Business Objects Report Writing preferred.