Loan Officers Career Description
For most persons and companies approaching a bank seeking a loan, the Loan Officer will be their first point of contact. Many Loan Officers assist prospective buyers with the sometimes complex process of loan applications. They are often responsible for explaining various types of loans and credit terms to the potential borrower. Loan Officers perform a dual service for banking institutions as they may approach companies and corporations and assess their loan needs and bringing in new business.
Loan Officer Career Specializations
Because banking is complex, and loans are just as complex a Loan Officer will normally specialize within a certain types of loans. Some Loan Officers specialize in commercial loans, others in consumer loan and still others in mortgage loans. Loan underwriter is a Loan Officer specialization where they specialize in determining if the client's credit qualifies for a loan and assess the potential loan risk.
Loan Officers who specialize in collection are known as loan collection officers and they are generally charged with contacting the client and assisting them in finding ways to repay delinquent loans.
Job Duties and Responsibilities
The Loan Officer is often responsible for analyzing and verifying credit applications by prospective borrowers. These days that involves using banking software that can automate much of the process and bring back a credit score nearly instantly. Sometimes the Loan Officer will require additional information and will request that from the client as well.
The Loan Officer's work environment will vary according to their department or specialization. Loan Officers who specializations require a lot of traveling may often work from their laptops with infrequent visits to the home office. Commercial Loan Officers often have complex loans to negotiate and which require travel to the client office which is not always local. Mortgage Loan Officers can take on as large a client load as they can handle, so they may work exceptionally long hours. When mortgage rates are lower than the Loan Officer will be busier. Commercial Loan Officers will frequently travel to meet with clients and assess their needs.
Though over all most Loan Officers work a 40 hour work week this can depend upon their area of specialization and how much workload they want to take on.
Employment Outlook and Opportunities
According to recent statistics 9/10 Loan Officers were employed by banking institutions. A few Loan Officers were employed by mortgage companies.
Job growth for the Loan Officer through the year 2016 is predicted to be about average according to a US Department of Labor 2006 national employment status report. That translates to about 11% job growth for the year 2016. The new software programs that have resulted in automating much of the loan application process are expected to balance out the population grows and consequently so does the demand for new loans, leaving the Loan Officer's employment outlook stable. The new software available has particularly impacted the Loan Officer who specializes as a loan underwriter in that credit scores and credit history are almost instantly available.
How much does a Loan Officer make - Loan Officer Salaries and Wages
Earnings for Loan Officers with 1 to 4 years experience are reported to be within the $29,214 and $47,552 range per year.
Earnings for Loan Officers with 5 to 9 years experience are reported to be within the third $2261-$59,238 range per year per year.
Earnings for Loan Officers with 10 to 19 years experience are reported to be within $36,366-$67,551 range per year.
Salary ranges for the Loan Officer are impacted by the banking institution or mortgage institution by which their employed as well as the region they live and work in.
How to Become a Loan Officer
Education for Loan Officers
A bachelor degree is preferred by most banking institutions hiring new Loan Officers. Majoring in the areas of finance, economics, or business administration is preferable. On-the-job experience is sometimes (though rarely) accepted in place of education. That would include several years of working as a bank teller or perhaps a customer service representative within a banking firm. Loan Officers who plan to advance within their career choice are advised to obtain a degree.
There are certain certifications available to the Loan Officer desiring continuing education. Often larger banking i associations offer certification within specialized areas. The mortgage bankers Association offers a certification of CMB (Certified Mortgage Banker) with designation of residential commercial and even a master certificate.
For the Loan Officer who specializes in reviewing loan applications, then The Bank Administration Institute offers the loan review certificate program.
The Loan Officer functions not only as a reviewer of loan applications, but also as a salesperson for the bank at times. This person should have strong communications deals and the ease in public and social situations. For more information for schools offering Loan Officer degree programs and courses you can use the links provided on this site.
Loan Officers who demonstrate competence within their field can be promoted to larger offices or into supervisory capacities.