What Does a Collateral Manager Do?

The collateral mainly refers to real estate, including assets with large physical value, such as houses, land, automobiles, and machinery; the collateral mainly refers to the owner's certificate of rights. Mortgages are also pledged after being mortgaged to creditors and after completing the mortgage procedures.

Collateral

Right!

The collateral mainly refers to real estate, including assets with large physical value, such as houses, land, automobiles, and machinery; the collateral mainly refers to the owner's certificate of rights. Mortgages are also pledged after being mortgaged to creditors and after completing the mortgage procedures.

Collateral collateral includes all collateral against public, private, and foreign exchange businesses, including deposit slips, land certificates, house ownership certificates, automobile title certificates, bills of exchange, checks, promissory notes, bonds, warehouse receipts, bills of lading, according to law Transferable shares and other rights certificates.

Chinese name

Collateral

Category

Professional term

Related field

Mortgage

Related disciplines

economics

The characteristics of collateral are: (1) cash can be directly cashed. If the land is sold, the house is sold. Selling a car becomes cash; (2) It can be turned into cash indirectly. If the certificate of rights is lent to another person and then pledged for financing, then the pledged property is actually turned into cash again. Since the value of the collateral is large and can be directly or indirectly turned into cash, the risk is very large. ^[1]

When customers borrow loans, in order to prevent borrowers from repaying loans on time, banks often require customers to provide collateral and sign a collateral agreement. The valuation of collateral is not necessarily the same as the loan amount, and is usually higher than the loan amount. Although the borrower has designated all of its fixed assets or valuable documents as collateral, as long as the borrower does not default, the ownership of these collateral remains with the borrower, not the bank. Therefore, for collateral, the bank should perform accounting off-balance sheet. ^[2]

Generally speaking, when a bank approves and issues loans, it has strict control over the conditions of loan disbursement. There is a set of review procedures, which usually require land, houses, etc. to be mortgaged, and stocks, deposit certificates, etc. to be pledged. The value of the collateral is generally greater than the funds of the loan, so that when the loan is in trouble, the sale of the collateral is sufficient to repay the loan. Rethinking a large number of loans written off by banks in China, many of which have land, houses, etc. as collateral when they are issued, but when problems occur with the loan, no collateral can be found, or only a small part of the value is available In repayment of loans. Where is the problem? ^[1]

First, fraud. Illegal elements have lied to bank funds by faking land and houses. In particular, housing developers, when applying for a mortgage loan, make up fictitious floors and the number of houses. Obviously there are four households on one floor, and five households are fictitious. The bank's credit management staff did not visit the site. The criminals used the fictitious house and the fake buyer's name to borrow money from the bank to defraud the bank's funds. Some borrowers use land with no commercial value to illegally assess the value of the company's land to obtain a mortgage loan from the bank. Some borrow a piece of land by the sea. The land disappears or disappears as the tide rises and falls. In the case of land certificates and transfer formalities, the land is still there after the loan problem, but it cannot be used and transferred for realization. Some criminals buy a house worth 300,000 yuan, let the assessment company evaluate it to 1 million yuan, and then use the 1 million yuan house to go to the bank to apply for a mortgage loan of 3 million yuan, in turn, revolve the loan and collect bank cash. Finally, he took the cash away and left the house of little value to the bank. Social criminals defraud various forms of bank funds and change with the development of the economy, but one thing in common is that bank credit officers do not follow procedures, do not check on the ground, and do not strictly perform their duties are the main reasons for fraud. One.

Second, make loans without fulfilling the loan conditions. Some loan projects from the original loan files to the approval documents of the loan approval departments at all levels clearly record that the loan requires land, houses, etc. as collateral, and the loan can only be released after completing the mortgage procedures. Some loan contracts provide for a security deposit as a percentage. However, there is often a situation where the credit officer intentionally or unintentionally issues the loan before completing the collateral formalities or receiving the security deposit, and the lending department does not carefully review and implement the lending conditions. Some regulations require a few percent of the security deposit to open a letter of credit for an enterprise and a bank acceptance bill for an enterprise, but they are often processed without fulfilling the conditions. In the operation of these businesses, "intentional" means that the credit officer and the debtor conspired to defraud the bank. It did not intend to use its own assets for collateral, nor did it want to pay a certain amount of security deposit. Intentional falsification, fish in muddy water. "Unintentional" refers to a loophole in the bank's internal management, and all functional departments are irresponsible. When this happens, they push each other and leave it alone.

Third, the person in charge of individual outlets or the account manager exceeded the authority to apply for collateral, and one person covered the entire process of handling the collateral formalities. Collateral collateral is a condition for the approval and loan of loan applications. The handling and storage of collateral formalities should be completed by different departments and different personnel, and the process of handling them should have written records. If all the procedures are covered by one person, the authenticity, integrity and security of the collateral cannot be guaranteed.

Fourthly, it can be rented out after misappropriating the collateral. The collateral is a certificate of rights of the bank with important value, and should be recorded in the off-balance sheet account as an important contingent asset of the bank. In fact, things should be stored in a warehouse to avoid loss. Poor accounting often occurs in poorly managed banks: (1) The collaterals are kept by their credit officers in their own office cabinets, and some weak-minded people are tempted to use the stored collaterals for their own financing business. . (2) Some people, because of face-to-face relationship, have a sense of morale, can't stand the temptation of friends of wine and meat, lend the collateral they keep to their friends for financing. After a friend raises funds, he may return the loaned collateral, but if there is a problem with the use of the funds raised by the friend, or if he does not pay back maliciously, the credit officer may be in danger. (3) The pledged collateral is not recorded, which causes the accounts to be inconsistent. (4) The collaterals are not stored as required. No litter, no things.

Fifth, privately distributed collateral. Many collaterals suffer physical loss during storage. If the car is not used, the engine will be damaged and the bicycle will not rust. Therefore, some people use it in disguise to privately distribute collateral.

There are various forms of collateral problems. Due to their high value and high risks, they must be used as one of the important contents of audit at any time.

First, the audit work is mainly to ensure the implementation of various bank management regulations. All risks occur as a result of improper operation. In the case of not operating according to regulations, some people will touch the fish in muddy water. Therefore, it is one of the loan risk controls whether the conditions for granting credit are strictly implemented in the issuance of loans. The implementation of such regulations should be regarded as an important part of compliance operation assessment and one of the important contents of accountability. Why does the credit approval requirement require a 10% deposit to be released, but is not charged in practice or is only charged at 1%? Why is the credit approval requirement required to complete the mortgage registration after completing the mortgage registration Can you lend money, but lend money before the mortgage right certificate of the real estate management department is completed? Lending money without paying land use fees, obtaining land use rights, and not even having a land certificate? Who is responsible and where is the problem? Whether it is artificial, deliberate or managerial, etc. must be figured out. In terms of bank management, collateral and collateral are often thought of when there is a problem with the loan, but prior to the problem, the management of the implementation of credit conditions during the lending is often not paid much attention to.

Second, check the credit officers' performance of their responsibilities. Before submitting the loan application to the borrower, the credit officer went to the site to check and check whether the borrower's assets were verified and the house developer had to verify the number of saleable houses.

Third, check the accounting and management of collateral. Check whether there are loopholes in the operation of the operation to ensure the integrity and security of the collateral, and if necessary, check with the physical object.