Loan officers meet with applicants who wish to borrow money and evaluate, approve, or reject 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.
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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. Most work in office buildings such as at banks, financial institutions, and mortgage companies.
Loan Officer Career Video Transcript
Many people dream of buying a house or going to college. But these plans and many others, cost more money than most people have. That’s where credit and loan counselors and officers come in, they help people find the best ways to borrow the money they need. Loan officers meet with people applying for loans. They examine applicants’ financial records and determine just how much money they may be able to borrow.
Some people have financial problems that can make it difficult for them to borrow using traditional options. Loan counselors search for alternatives. Once they’ve found an appropriate loan, counselors explain what financial regulations are involved. Credit counselors help customers resolve financial issues, from creating a plan to pay off debt, to finding a financial aid program for college. Financial matters can be tedious and frustrating to handle, so a steady demeanor is helpful.
This work requires the ability to listen carefully and explain complicated issues simply. Credit and loan officers and counselors work in banks, higher education, and in mortgage firms. In addition to math skills, they must be detail-oriented to accurately complete loan documents. These professionals usually have a degree in finance or economics. If you like helping people and you’re good with numbers, your skills could lend themselves to a career as a credit professional.
Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Loan Officers.
National Center for O*NET Development. 13-2072.00. O*NET OnLine.
The career video is in the public domain from the U. S. Department of Labor, Employment and Training Administration.