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Mortgage loan officers help borrowers arrange financing for homes, land and commercial real property. They use their training to help borrowers choose the right mortgage product and apply for the loan. Loan officers analyze and assemble the needed documentation, such as tax returns, bank statements, credit reports and appraisals. Most mortgage loan officers are also trained to use an automated underwriting software program to issue quick underwriting decisions.
Overview of Mortgage Loan Officer Training
Required education for mortgage loan officers can be as little as a high school diploma and some in-house or on-the-job training. However, better opportunities go to those with more training. Many entry-level loan agents start out as assistants in mortgage or real estate offices, as loan processors, or selling other things such as cars.
Mortgage Loan Officer Training: Degrees and Coursework
Training can range from certificate programs offered by community colleges and vocational schools to bachelor's degrees in business-related subjects to MBA degrees. The MBA is particularly useful for those who want to move into management or executive positions.
Mortgage loan officers often earn a bachelor's degree in finance, economics, marketing, or a related field. This added education is almost always required of commercial mortgage loan officers—those who arrange financing for office buildings and apartment complexes. Because all mortgage loan officers analyze the finances of people buying or refinancing homes, they need to understand income, tax returns, assets, mortgage program guidelines and investments. Helpful classes include:
Some states require mortgage brokers to have bachelor's degrees. Licensing requirements for mortgage brokers are more rigorous because they oversee the loan officers working under them.
Training for Licensure
Federal law requires all mortgage loan officers be licensed in their states. This means at least 20 hours of coursework and passing a written exam and background check (no felony convictions are allowed). Continuing education is mandatory to maintain licensed status. Wherever they do business, mortgage loan officers must meet the education and licensing requirements, which can differ from state to state.
Responsible for all lending activity in their offices, mortgage brokers must have real estate licenses in many states. They need to post surety bonds and/or have a minimum net worth. A bachelor's degree may be required. Mortgage brokers often need several years of lending experience and a physical office in the state where they work.
Advanced Mortgage Loan Officer Training
Many colleges and schools offer mortgage loan officer training, either on-campus or online. In addition, most employers require their mortgage loan officers to complete in-house training and continuing education.
Advanced certification for loan officers is available from several sources, giving those who hold such credentials extra marketability. The Mortgage Bankers Association offers several levels of Certified Loan Officer (CLO) training -- achievement certificate, professional certificate and specialist designation -- to those who meet its criteria. It also offers the Certified Mortgage Banker (CMB) designation. The association offers three CMB designations: residential, commerce and master to applicants with at least 3 years of experience and who earn educational credits and pass an exam.
Completion of these courses and programs generally enhances employment and advancement opportunities.
Related Careers
Related careers include mortgage underwriters, mortgage brokers, branch managers, sales managers and operations managers.
Loan Officer Career Outlook
The Bureau of Labor Statistics reports the mortgage loan officer profession should experience average growth, but opportunities for job candidates will be good, with the number of job openings roughly equal to the number of applicants. College graduates and candidates with lending, banking or sales experience can expect to find the most opportunities and the best jobs. Commercial loan officers should be well-positioned as there are not enough qualified candidates to fill vacancies.
Mortgage loan officers are paid by commission, salary or a combination of both. Loan officers paid on commission usually earn more than those earning only a salary. The earnings of those who work on commission fluctuate with mortgage interest rates, increasing when rates are low and dropping off when mortgage rates increase. Loan officers who work for smaller banks generally earn less than those employed by larger loan originators, with mean earnings at $63,210 in 2009, according to the Bureau of Labor Statistics.
Resources for Mortgage Loan Officers
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