The Bank is a cooperative, wholesale bank that helps meet community credit needs by providing readily available, competitively priced credit products and services to member financial institutions through all phases of the economic cycle. The Bank’s members include commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions headquartered in Arizona, California, and Nevada. The primary responsibility of the Vice President, Member & Counterparty Credit is to provide strategic direction to and execution of the planning, development, implementation, administration, and oversight of the Bank’s Credit Risk Framework. The Credit Risk Framework comprises of policies, underwriting standards, and credit practices for the provision of credit lines to the Bank’s members and counterparties.
This role leads a team of professionals to manage and monitor member credit risk; oversee functions that support the Bank’s secured credit to members; and manage the unsecured credit risk associated with liquidity investments and derivatives; assist in managing the mitigation of risks associated with the Mortgage Partnership Finance (MPF) program; and comply with Management and Board policies, Federal Housing Finance Agency (FHFA) regulations and advisory bulletins, and other regulatory guidelines. This role works closely and collaboratively with many stakeholders including the Credit & Collateral department peers, the Vice President of Sales, Members Solutions and Strategic Planning, Relationship Managers, Assistant General Counsel for Credit, Vice President Member Financial Services, second line Enterprise Risk and Credit Risk Management, Chief Banking Officer, the members of the Credit Committee, and the Chief Risk Officer.
The Vice President, Member & Counterparty Credit must be an experienced credit professional with strong credit fundamentals, can deliver, individually and through a team, a high-quality credit underwriting end-product, plus guide and deliver enhancements to the credit risk framework brought about by new member, product, service, and collateral types. The use of data, providing technical expertise for structuring / mitigating exposure of credit deals, pursuing leading credit practices, and the ability to communicate the merits and risk mitigation of a credit recommended for approval are key for this role.
Member and Nonmember Credit
Implement and oversee the Credit Risk Framework for secured credit to members and nonmembers.
Anticipate and lead any needed enhancements to the Credit Risk Framework due to a new member, product, service, or collateral type.
Contribute to the development and standardization and reporting of key performance indicators for different membership type cohorts.
Review quarterly Credit Quality Ratings (CQR) and subjective adjustments prepared by financial analysts. Ensure the final CQR ratings are consistent with CQR definitions.
Update, maintain, and benchmark the CQR System.
Update the quarterly CQR and recommend final ratings to the Credit Committee.
Monitor the financial condition of members and nonmembers by reference to regulatory financial statements, public financial statements, and other disclosures, regulatory examination reports and actions, data services, credit models, and other.
Update and change the Financing Availabilities, credit and collateral terms, and collateral status, as appropriate.
Recommend initial credit terms for new members as part of the membership application approval process.
Collaborate with Portfolio Managers in determining an appropriate credit plan for large and/or troubled members.
Recommend asset classifications in accordance with the Asset Classification policy.
Support credit product development.
Respond to examinations and regulatory requirements.
Counterparty Credit and Capital Markets
Implement and provide strategic direction to the Credit Risk Framework for liquidity portfolio investments and derivatives as market conditions change.
Ensure compliance with the FHFA unsecured credit regulation, Bank Risk Management Policy, Credit Committee guidelines, and counterparty eligibility requirements.
Design and maintain the Credit Control System to ensure accurate implementation and monitoring of policy/regulatory requirements. Review and approve recommendations for new counterparties and assign limits.
Review and ensure timely monitoring market based credit indicators such as agency ratings, default probabilities, credit spreads, stock prices, and other sources of credit information.
Review and ensure timely monitoring of industry sector and foreign country concentrations.
Monitor portfolio risk in aggregate and counterparty risk concentrations.
Recommend risk mitigating actions regarding exposure to individual counterparties, counterparty sectors, countries, or the portfolio as a whole based on risk profile of the portfolio and risk contribution of counterparties.
Oversee the Credit support process during the negotiation of counterparty related legal agreements.
MPF Credit and Governance
Ensure policies and guidelines to manage the risks associated with the Bank’s MPF program are designed effectively and adhered to. The Vice President, Credit and Collateral shares a dual reporting line with the Vice President, Member Financial Services for the Assistant Vice President, Mortgage Partnership Finance who is responsible for the Participating Financial Institution (PFI) application process, MPF Quality Control framework, PFI annual eligibility review process, Bank’s exception process for MPF modifications, MPF servicers and Mortgage Insurer credit monitoing, the annual assessment of the MPF Credit Risk program and new MPF products and guidelines.
Share in the Bank wide review of the MPF Provider to ensure controls that the Bank needs in order to address any internal control and/or operational weaknesses of the MPF Provider, which includes the monitor and review of the annual System and Organization Controls report (SOC1).
Develop staff through performance management, goal setting, coaching, training and effective employee relations. Can attract and retain top talent.
Participate in the establishment of department goals and implement procedures and performance standards to achieve these goals.
Minimum of ten years’ progressively responsible positions managing credit risk.
Demonstrated people and project management expertise.
Experience in a regulated financial institution or regulatory agency.
Solid understanding of credit rating methodologies and models, including expert knowledge, score card, and statistical based models.
Understanding of credit risk (traditional lending and capital market products, institutional credit of the Bank’s current and future member types, and counterparty credit).
Experience with or understanding of non-regulated mortgage lenders/investors entities, including market place lenders, mortgage Real Estate Investment Trusts (REITs) is not mandatory but desirable.
Understanding of bank and thrift regulatory and credit union financial reporting (Call reports) and corrective/enforcement actions required.
Ability to prepare, edit and review written financial analysis memorandums for completeness and accuracy required. With this, also have an ability to use data to aid decision making by possessing strong analytical and problem-solving skills while being able to tell the story behind the numbers and analysis.
Advanced knowledge of Microsoft Office is preferred.
Masters degree in Business Administration, Finance, Economics, or a related field, or an equivalent combination of education and experience from which comparable knowledge and skills may be acquired.
Experience with senior level presentations and strong communication skills, both written and verbal.
Excellent interpersonal skills to work in a team environment and to influence and interface with a broad range of stakeholders at all levels, both internal and external.
Self-motivated; possess an innovative, open, and strategic mindset; deliver on results through leading others and providing technical support; and contribute to the leadership of the Credit and Collateral Department as a member of the Credit and Collateral Extended Leadership Team.
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