17 Lending Manager Interview Questions and Answers

As a lending manager, you’re responsible for the entire loan process, from origination to disbursement to collection. You work with a variety of people, from borrowers and loan officers to underwriters and accountants. A lending manager is the key to a smooth and successful loan process, and interviewers will want to make sure you have the skills and personality to handle the job.

To help you get ready for your interview, we’ve compiled a list of the most common lending manager interview questions and answers. You’ll find questions about your experience in the lending industry, your knowledge of the loan process, and your ability to handle difficult situations. We’ve also included questions about your personality and your ability to work with others. Review these questions and answers so you’ll be prepared to ace your interview and get the job you want.

Are you familiar with the lending laws and regulations in this state?

The interviewer may ask this question to see if you are familiar with the lending laws and regulations in your state. This is because they want to make sure that you will be able to follow all of these rules when working for their company. To answer this question, you can let them know which state you live in and what you know about the laws and regulations there.

Example: “I am currently living in California, where I have been a licensed mortgage lender for five years now. In my experience, I’ve learned that there are many different types of loans available, each with its own set of requirements. For example, FHA loans require a down payment of at least 3.5% while VA loans only require a 1% down payment. I also understand that lenders must abide by certain guidelines when it comes to interest rates.”

What are some of the most important qualities for a successful lending manager?

This question can help the interviewer determine if you have the skills and abilities to be successful in this role. When answering, it can be helpful to mention a few of your strongest qualities that will help you succeed as a lending manager.

Example: “I believe some of the most important qualities for a successful lending manager are communication skills, problem-solving skills and attention to detail. As a lending manager, I would need to communicate with many different people, including clients, other employees and my team. Having strong communication skills is essential for making sure everyone understands what they need to do. In addition, having good problem-solving skills is important because there may be times when something goes wrong or an issue arises. Finally, attention to detail is important because it ensures all loan applications are processed accurately.”

How would you rate your people skills?

Hiring managers may ask this question to see how you would interact with your team members. They want to know that you can communicate effectively and work well with others. When answering, consider what skills you have that help you interact with people. Consider mentioning a time when you had to interact with someone or a group of people.

Example: “I think my people skills are quite strong. I enjoy working with others and helping them solve problems. In fact, I find it rewarding to be able to help someone get the loan they need to buy their first home. I feel like I am good at communicating clearly and listening to others. For example, I recently helped a client who was having trouble finding a lender willing to give her a mortgage. She was very upset, but I listened to her concerns and offered some advice on where she could look for more information.”

What is your experience with risk assessment?

Lending managers are responsible for assessing the risk of a loan and determining whether to approve it. This question helps employers determine your experience with this process and how you apply it in your work. In your answer, describe what steps you take when performing a risk assessment and highlight any specific skills or tools that help you complete this task effectively.

Example: “I use several factors to assess the risk of a loan. First, I look at the borrower’s credit score and history. Then, I consider their debt-to-income ratio and other financial obligations. Finally, I examine the property they’re applying for a loan on to ensure there aren’t any issues that could affect the borrower’s ability to repay the loan.”

Provide an example of a time when you had to deal with a difficult customer or client.

Interviewers ask this question to see how you handle conflict. They want to know that you can remain calm and professional in challenging situations. In your answer, try to focus on the steps you took to resolve the situation.

Example: “In my previous role as a lending manager, I had a client who was very upset with our company’s service. The customer called me multiple times about their loan status, which made it difficult for me to get other work done. I remained polite but firm when talking to them. Eventually, I scheduled a meeting with them so we could discuss the issue face-to-face. During the meeting, I explained why there were delays in processing their application. We also discussed ways they could improve their credit score to make future loans easier.”

If hired, what area of lending would you like to focus on?

This question helps employers understand your career goals and how you plan to achieve them. When answering this question, it can be helpful to mention a specific type of lending that interests you or an area where you have experience.

Example: “I would like to focus on commercial real estate lending if hired for this position. I’ve worked in the residential mortgage industry for five years now, but I’m ready to take my skills to the next level by working with larger loans. In my previous role, I helped clients secure $50 million in loans, so I think I am ready to work with even bigger loans.”

What would you do if you noticed a pattern of failed payments among some of your clients?

This question can help the interviewer determine how you handle challenging situations and make decisions. Use your answer to highlight your problem-solving skills, ability to analyze data and willingness to take action when necessary.

Example: “If I noticed a pattern of failed payments among some of my clients, I would first try to understand why this was happening. If it seemed like there were multiple reasons for these failures, such as late payments or missed payments, I would contact each client individually to discuss their situation. I would also look at the overall numbers to see if there are any patterns that could help me identify what is causing these issues. If I notice that certain loans have higher default rates than others, I would work with my team to develop strategies to address these problems.”

How well do you know our company’s lending policies and procedures?

The interviewer may ask this question to assess your knowledge of the company’s policies and procedures. This can be an important part of lending because you must follow these guidelines when working with clients. In your answer, try to show that you understand how the company operates and are willing to adhere to its standards.

Example: “I have been a client at this bank for many years, so I am very familiar with all of the company’s lending policies and procedures. For example, I know that we always need two forms of identification from our customers before issuing loans. I also know that we cannot lend money to anyone who has more than $10,000 in credit card debt. These are just some of the policies that I am committed to following as a lending manager.”

Do you have experience using loan origination software?

Loan origination software is a computer program that helps lending managers create loan applications, track client information and manage the overall lending process. An interviewer may ask this question to learn about your experience using specific programs or if you have any experience with them at all. In your answer, try to describe what type of software you use and how it has helped you in your previous roles.

Example: “I’ve used several different types of loan origination software throughout my career. I started out working for a small bank where we only had one system to work with. It was helpful because it allowed me to enter data quickly and keep track of clients’ financials. When I moved to my current company, we implemented a new system that streamlined our processes even more. The system allows us to customize our workflow based on each individual client’s needs.”

When assessing a loan application, what are the first things you look at?

This question is an opportunity to show your interviewer that you have a process for reviewing loan applications and making decisions. Your answer should include the steps you take when assessing loans, including how you prioritize which ones to approve first.

Example: “When I assess a loan application, my first step is to look at the applicant’s credit score. If their score is below 600, I’ll usually reject the application because it means they’re more likely to default on the loan. Next, I’ll check the applicant’s debt-to-income ratio to make sure it’s within industry standards. Finally, I’ll review the applicant’s income history to ensure there aren’t any discrepancies.”

We want to improve our customer service. Give me an example of a strategy you would use to do this.

Interviewers may ask this question to see how you would implement a company’s values and goals. Use your answer to show that you can work with others to create strategies for success.

Example: “I think it’s important to have open communication between departments, so I would start by having monthly meetings with the customer service department. During these meetings, we could discuss any issues customers are experiencing and brainstorm ways to improve our response time or other aspects of our customer service. We could also use these meetings to celebrate employees who go above and beyond to help customers.”

Describe your process for managing the risk of default when approving a loan.

The interviewer may ask you a question like this to assess your risk management skills. This is an important skill for lending managers because they must ensure that the loans they approve are likely to be repaid by their customers. In your answer, describe how you analyze and evaluate information about potential borrowers to determine whether or not you should approve their loan application.

Example: “I use several different methods to assess the risk of default when approving a loan. First, I review the borrower’s credit history to see if they have any past due payments or late payments on their record. If so, I will consider rejecting their loan application unless they can provide evidence that they have resolved these issues. Next, I check the applicant’s income and employment history to make sure it meets our requirements. Finally, I verify that the applicant has enough money in their bank account to cover the monthly payment.”

What makes you stand out from other candidates for this position?

Employers ask this question to learn more about your qualifications and how you can contribute to their company. Before your interview, make a list of the skills and experiences that qualify you for this role. Focus on what makes you unique from other candidates and highlight any transferable skills or knowledge you have that will help you succeed in this position.

Example: “I am an experienced lending manager with five years of experience. I also hold my MBA in finance, which means I have the education necessary to excel in this role. In addition, I have extensive customer service experience, so I know how to work well with others. These skills make me the best candidate for this position.”

Which industries do you have the most experience working in?

Hiring managers may ask this question to learn more about your background and experience. They want to know if you have the skills necessary for their company, so they might look at what industries you’ve worked in before. When answering this question, it can be helpful to mention a few of the industries you’ve worked in and why you’re interested in working in that industry again.

Example: “I’ve mostly worked in construction and real estate, but I’m also very familiar with the financial services industry. My last job was as a lending manager for a bank, where I helped people get loans for homes and businesses. I really enjoyed helping customers find solutions to their problems, and I think my previous experience would make me a great fit for this position.”

What do you think is the most important thing a lending manager can do to maintain a positive work environment?

A hiring manager may ask this question to learn more about your leadership skills and how you can help the team function well together. In your answer, try to emphasize collaboration and teamwork. You can also mention specific strategies that you use to encourage a positive work environment.

Example: “I think it’s important for lending managers to create an open-door policy where employees feel comfortable coming to them with questions or concerns. I always make sure to have regular one-on-one meetings with my team members so they know I’m available to talk if they need anything. Another thing I do is hold monthly training sessions on different aspects of our business so everyone feels confident in their job.”

How often do you recommend renewing loans?

This question can help the interviewer understand your lending philosophy and how you apply it to customer service. Your answer should show that you consider renewing loans when appropriate, but also that you do not renew them too often or for unnecessary reasons.

Example: “I recommend renewing loans only when necessary because I believe this is a good way to ensure customers are satisfied with their experience at our bank. However, I always make sure to communicate clearly with my clients about why we need to renew their loan before doing so. This helps me avoid any misunderstandings and ensures they know I am looking out for their best interests.”

There is a new law that impacts the loans you can offer. How do you update your procedures to reflect this change?

This question is a great way to assess your ability to adapt to changing regulations. It also shows the interviewer that you are willing to learn new information and apply it to your work. In your answer, explain how you would research the law and update your procedures accordingly.

Example: “I recently learned about a new regulation regarding loans for people with poor credit. I immediately researched this change in the law and updated my lending procedures to reflect these changes. Now, we only offer loans to customers who have a FICO score of at least 500. This has helped us avoid any legal issues while still offering our customers quality service.”