What does a Loan Officer do?
|Citation||Retrieved in 2017 from BLS.org|
Loan officers meet with applicants who wish to borrow money and evaluate, approve, or rejectt the loan applications. They answer questions and help guide customers through the applications process as well. They may also market the service and products of their lending institution and contact people or companies to solicit new business. Most work in office buildings such as at banks, financial institutions, and mortgage companies.
How to Become a Loan Officer
In most instances, a loan officer requires a bachelor’s degree in finance or business. They need to understand general business accounting and be able to read financial statements in order to properly analyze the finances of those applying for credit.
In some cases, it may be possible to enter this job without a bachelor’s degree if you have related work experience such as banking, sales, or customer service. On-the-job training is usually given once you have been employed and usually includes a combination of informal training and formal company-sponsored training.
A mortgage loan officer requires a Mortgage Loan Originator (MLO) license. To acquire this license you must complete 20 hours of coursework, pass the exam, and pass a credit and background check. Many banking associations offer courses (including the American Bankers Association and The Mortgage Bankers Association) for certification which may give you an advantage for a job.
Job Description of a Loan Officer
Loan officers meet with loan applicants and collect and verify all required financial documents. They determine if the person or business is qualified for a loan and review loan agreements to ensure they are in compliance with state and federal regulations. They also help the customer through the application process and enter information into a software program to determine the recommendation for a loan.
There are a few types of loan officers that specialize in certain areas such as commercial loan officers, consumer loan officers, mortgage loan officers, loan collection officers, and loan underwriters.