Loan officers decide whether or not banks and other financial institutions can qualify individuals and corporations for loans. They analyze loan applicants’ financial records and apply criteria and guidelines to assess their ability to repay a loan. Loan officers can look at the salary, job stability, debt-to-income ratio, and liquid assets of applicants to determine the risk of lending to them.
As more and more people today need to rely on loans, this position has become increasingly important. Along with this, loan officers need to be able to talk with a variety of people. As such, sales and customer service are a significant part of the job of a loan officer.
Many forms of loan officers need to pursue their own customers, such as mortgage originators. In addition, loan officers working with banks and credit unions are expected to create new businesses for their employers. Loan officers must meet with clients to assess their needs and answer any questions they may have.
Education And Training
Many loan officers have graduated from college, and many have at least a bachelor’s degree, often in a business-related field. Students typical focus on one area of specialization, such as accounting or finance.
Accounting-focused students learn about taxes, auditing, accounting, and accounting software. In a career as a loan officer, a familiarity with business accounting and auditing of financial records will help you greatly.
Many community colleges offer programs for developers of mortgage loans. Participants in these programs take courses on subjects such as real estate principles, real estate fraud, real estate economics, real estate finance, pricing, marketing, and assessment.
Responsibilities Of A Loan Officer
- Talk with applicants to determine their needs and gather information.
- Regularly review active loan files and propose approaches to improve the loan process.
- Fill out loan contracts and provide guidance on policies and regulations to clients.
- Ask candidates to determine financial eligibility and draw up plans for debt payment.
- Monitor and update account records.
- Submit loan applications in a timely manner.
- Prepare detailed loan proposals.
- Reject loan applications and explain deficiencies to applicants.
- Respond to applicants’ questions and resolve any loan-related issues.
- Operate in compliance with federal and local laws and regulations.
Certifications To Be A Loan Officer
Many states require a license from mortgage originators before they can provide consumers with their services. The requirements developers of mortgage loans must meet often vary by state. Still, typically you must complete several hours of pre-licensing education first. In most jurisdictions, mortgage loan originators have to complete 20 hours of schooling, but some states need more.
Prelicensing education is provided in each state by licensed providers, and many countries follow the standards set by the NMLS. Study topics include federal law, ethics, loan requirements, and details unique to the state. Then, prospective mortgage originators must pass the NMLS National Test upon completion of their pre-licensing education.
Where To Apply For A Job
This position can be accessed through typical online job boards and community resource networks. Most banks post job opening details on their websites so you can connect with your area’s banks, credit unions, and other financial institutions.
You can collaborate with the alumni network of your school to make connections in the industry if you attended a business school. A strong professional system can provide valuable job opening knowledge. The salaries are just under $75,000 on average as of 2019, according to Indeed.com.
A loan officer works for a bank, credit union, or another financial institution to find and assist borrowers in receiving loans. Loan officers will work with a wide range of consumer and business loan items.
For more jobs related to business, sales, and marketing, click here.