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Certificate in Loan Review Certification: Details on Examination and Certification for Loan Review Certification

Written by AnonymousSeptember 17, 2011

If you’re looking to improve your career in accounting, obtaining an accounting certificate is an excellent first step. Accounting certifications can expand your accounting knowledge and increase your proficiency in a specific area of the accounting field.

Introduction to Certificate in Loan Review Certification

Loan officers are banking professionals who help individuals and organizations secure the financial resources needed to achieve a specific goal, such as buying a house, starting a business, or making an investment. Loan officers  are responsible for analyzing their clients’ credit reports in order to determine what kind of loan is best for them  and how likely the client is to pay back the borrowed sum.

The Certificate in Loan Review program, offered by the Bank Administration Institute (BAI), is the only recognized loan review certification program in the United States. The program consists of two courses (one of which can be bypassed if you pass a proficiency test) and a final examination. The Certificate in Loan Review program is designed to give loan officers and lending personnel an advanced level of proficiency in the loan industry’s standard practices. Both courses emphasize the use of case studies — detailed, well-researched reports that analyze the development of a loan review situation. Case studies ensure that students are prepared for the real-life challenges typically encountered in the profession.

Participating in the program has the potential to:

  • Assure lending institutions that you have advanced training as a loan officer and are able to support the needs of their clients  
  • Improve your loan review skills, which enables  you to detect deteriorating or high-risk loans more quickly 
  • Develop enhanced credit assessment and portfolio management skills
  • Lead to increased career opportunities

Key Steps to Certificate in Loan Review Certification

In order to be eligible to participate in the Certificate in Loan Review program, you must:

  • Have a minimum of two years of loan review work experience
  • Have regulatory experience
  • Successfully complete a credit analysis class

Applying to the program requires paying a fee of $200 for BAI members and $245 for non-members as of 2011.

Once your application is approved,  you’re eligible to participate in Certificate Course I, also called Loan Review Course I, which is a three-day introductory course.  Certificate Course I covers the following topics:

  • The purpose and importance of the loan review process
  • Characteristics of a sound loan portfolio
  • Loan review procedures
  • Identifying and evaluating sources of repayment
  • Evaluating collateral
  • Loan classification systems
  • Report writing and interpersonal skills
  • Current topics in loan review

Enrollment in Certificate Course I costs $1,245 for BAI members and $1,445 for non-members as of 2011.

Advanced students have the option of taking a 150-question proficiency test. If they can demonstrate mastery of the material covered in Certificate Course I by scoring 70 percent or higher on the test, they can bypass the introductory course and enroll directly into Certificate Course II (or Loan Review Course II). Taking the proficiency test requires paying a fee of $225 for BAI members and $260 for non-members as of 2011.

Certificate Course II is an advanced four-day course that covers Uniform Credit Analysis (UCA) Cash Flow concepts, such as:

  • Credit risk management
  • The role of loan reviews
  • Assessing loan quality
  • Reporting procedures
  • Loan loss reserve
  • Evaluating the credit process
  • Regulatory viewpoint
  • Current topics in loan review
  • Enrollment in Certificate Course II costs $1,495 for BAI members and $1,745 for non-members as of 2011.

After you’re enrolled in the program, you have up to 30 days before the program begins to receive a full refund if you decide to cancel. If you cancel within 30 days of the start of the program, you can apply your payment to another BAI program or get a partial refund. After the program begins, all fees are non-refundable. 

For information about when these courses are being offered, check for updates on the BAI website.

Details of the Certificate in Loan Review Exam

After you complete Certificate Course II, you’re required to take the Certificate Final Exam — the last step toward earning the certificate. The exam is designed to test your knowledge of the concepts covered in both courses, using the following format:

  • Individual loan evaluations, including risk assessment and loan grading and classifications
  • Loan portfolio analysis, including risk assessment, administration, and loan loss reserve allocation
  • Credit process review
  • Written communication skills
  • Documentation review

Taking the exam costs $225 for BAI members and $260 for non-members.

Preparing for the Certificate in Loan Review Exam

Because the exam is designed to test how well you absorbed the information covered in both courses, full participation in the program should prepare you well for the exam. If you still feel that you need help preparing, non-BAI sanctioned study guides are available for purchase on the Internet.

Maintaining the Certificate in Loan Review Designation

After you finish Certificate Course I (or pass the proficiency test), BAI recommends that you earn 20 hours of continued professional education (CPE) credits before completing the entire program.

After you complete Certificate Course II, BAI recommends that you continue your professional development by earning an additional 24 hours of CPE credits.

Qualifying CPE activities include group educational programs designed to maintain or improve your professional competence. Your local branch of the National Association of State Boards of Accountancy (NASBA) has the final authority on what activities qualify.

Governing Board Information

The Certificate in Loan Review is issued by:

The Bank Administration Institute (BAI) <
115 S. LaSalle, Suite 3300
Chicago, IL 60603