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Loan Officers
Loan officers act as an intermediary between borrowers and lending institutions. They help businesses and individuals obtain funds from lenders. A loan officer solicits loans and represents creditors to borrowers and vice versa. Loan officers often specialize in consumer, commercial and mortgage loans.
They're typically employed by banks and other types of financial institutions. They often act like salespersons. They study potential markets and develop referral networks to find potential customers for loans.
Some loan officers called loan underwriters, specialize in assessing the credit worthiness of a client and sometimes perform a financial analysis or other risk assessments. Loan officers called loan collection officers, assist borrowers with delinquent loans and help them from defaulting on their loan. Loan counselors help people applying for loans that have difficulty qualifying for traditional loans.
Loan Officers Responsibilities
Qualities such as good interpersonal skills, sales ability, communication skills and a desire to succeed are important for the occupation. A loan officer also needs to be able to develop effective working relationships. Sometimes they go to community events as a representative of their employer.
The occupation typically involves a lot of travel. Mortgage and commercial loan officers frequently visit the homes or offices of their clients. Commercial loan officers sometimes need to travel to other cities in order to prepare complex loans. Consumer loan officers usually spend most of their time in an office. Most loan officers work 40 hours per week but some work more hours when they have a large number of clients and loans to work on.
Employment Outlook
Employment of loan officers is projected by the Bureau of Labor Statistics to increase by 11 percent from 2006 to 2016 which is about as fast as the average for all jobs. Those with college degrees and those with lending, banking or sales experience have the best job prospects.
The median annual earnings for loan officers in 2006 was $51,760. The top 10 percent earned over $107,040. Most loan officers receive a commission based on the number of loans they originate. Some companies only pay salaries and other companies provide a combination of a salary and commissions.
Loan officers have opportunities to advance to larger branches of the company or move up to managerial positions. Approximately 9 out of 10 loan officers work for commercial banks, credit unions, savings institutions and related financial institutions.
Loan Officers Education, Certification, and Licensing
Loan officers are often required to have a bachelor's degree in finance or economics or a related subject. Employers often seek those with experience in banking, sales or lending. Computer skills are also valued by employers.
Employees without college degrees sometimes advance into the position of loan officer after several years of experience in the company in occupations such as customer service representative or teller.
Banking-related associations and private schools provide classes and programs for people interested in lending occupations and also for experienced loan officers who want to update their skills.
The Bank Administration Institute provides the Loan Review Certificate program which is designed for those that review and approve loans. The Certified Mortgage Banker designation indicates the holder's comprehensive knowledge and competency in real estate finance.
In the United States there are no specific licensing requirements for loan officers employed by banks and credit unions. The training and licensing requirements for loan officers employed in mortgage banks and brokerages vary by state.
Resources for Loan Officers
Major Employers of Loan Officers
The major employers for loan officers are commercial banks, credit unions and savings institutions.
Schools for Loan Officers are listed in the column to the left.
The Top Cities tab shows employment statistics for Loan Officers by major metro area.
The Top Industries tab shows which industries have the most jobs for Loan Officers, along with salary data by industry.
The Find Schools tab lets you search for schools by field of study, degree level, and location.
These schools offer particularly quick info upon request, and we have written detailed profiles for each (click school names to see the profiles).
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We have some additional detailed pages at the state level for Loan Officers. These pages include maps focused on the particular state, among other details.
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