Loan officer
Encyclopedia
A loan officer is a person who serves as an intermediary between lending institutions and borrowers. They solicit loans, represent creditors to borrowers, and represent borrowers to creditors.
Loan officers work for bank
s and other financial institutions. They help individuals and business
es obtain funds from these lenders. Loan officers specialize in commercial, consumer and mortgage
loans. Loan counselors assist loan applicants who have difficulty qualifying for traditional loans.
Loan officer positions generally require a bachelor's degree
in finance
, economics
, or a related field. Banking, lending, or sales experience is highly valued by employers. Most employers also prefer applicants who are familiar with computer
s and their applications in banking. Loan officers without college
degrees usually advance to their positions from other jobs in an organization after acquiring several years of work experience in various other occupations, such as teller
or customer service representative. Personal qualities such as sales ability, good interpersonal and communication skills, and a strong desire to succeed also are important qualities for loan officers.
In the United States
, Loan officers that originate residential loans must obtain NMLS credentials. This includes: a background check, prelicense education, a credit check, and a national exam. A national exam known as the SAFE MLO test must be passed and in many cases individual states require testing. A "unique identifier" is obtained through this process and must be present on all FNMA 1003 / FHLMC 65 Uniform Residential Loan Application forms.
Various banking-related associations and private schools offer courses and programs for students interested in lending, as well as for experienced loan officers who want to keep their skills current. For example, the Bank Administration Institute, an affiliate of the American Bankers Association
, offers the Loan Review Certificate Program for persons who review and approve loans. This program enhances the quality of reviews and improves the early detection of deteriorating loans, thereby contributing to the safety and soundness of the loan portfolio. The Certified Mortgage Banker (CMB) designation demonstrates the holder's superior knowledge, understanding, and competency in real estate finance. The Mortgage Bankers Association offers three CMB designations: residential, commerce, and master's. To obtain the CMB, the candidate must have 3 years of experience, earn educational credits, and pass an exam. Completion of these courses and programs generally enhances one’s employment and advancement opportunities.
Persons planning a career as a loan officer should be capable of developing effective working relationships with others, confident in their abilities, and highly motivated. For public relations
purposes, loan officers must be willing to attend community events as representatives of their employer.
Capable loan officers may advance to larger branches of the firm or to managerial positions, while less capable workers—and those having weak academic preparation—could be assigned to smaller branches and might find promotion difficult without obtaining training to upgrade their skills. Advancement beyond a loan officer position usually includes supervising other loan officers and clerical staff.
Loan officers work for bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s and other financial institutions. They help individuals and business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
es obtain funds from these lenders. Loan officers specialize in commercial, consumer and mortgage
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
loans. Loan counselors assist loan applicants who have difficulty qualifying for traditional loans.
Loan officer positions generally require a bachelor's degree
Bachelor's degree
A bachelor's degree is usually an academic degree awarded for an undergraduate course or major that generally lasts for three or four years, but can range anywhere from two to six years depending on the region of the world...
in finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
, economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, or a related field. Banking, lending, or sales experience is highly valued by employers. Most employers also prefer applicants who are familiar with computer
Computer
A computer is a programmable machine designed to sequentially and automatically carry out a sequence of arithmetic or logical operations. The particular sequence of operations can be changed readily, allowing the computer to solve more than one kind of problem...
s and their applications in banking. Loan officers without college
College
A college is an educational institution or a constituent part of an educational institution. Usage varies in English-speaking nations...
degrees usually advance to their positions from other jobs in an organization after acquiring several years of work experience in various other occupations, such as teller
Teller
Teller may refer to:* Teller * Teller , of Penn & Teller* Bank teller** Automated teller machine* Teller * Teller, Alaska* Teller County, Colorado* Teller Amendment* Teller mine...
or customer service representative. Personal qualities such as sales ability, good interpersonal and communication skills, and a strong desire to succeed also are important qualities for loan officers.
In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, Loan officers that originate residential loans must obtain NMLS credentials. This includes: a background check, prelicense education, a credit check, and a national exam. A national exam known as the SAFE MLO test must be passed and in many cases individual states require testing. A "unique identifier" is obtained through this process and must be present on all FNMA 1003 / FHLMC 65 Uniform Residential Loan Application forms.
Various banking-related associations and private schools offer courses and programs for students interested in lending, as well as for experienced loan officers who want to keep their skills current. For example, the Bank Administration Institute, an affiliate of the American Bankers Association
American Bankers Association
The American Bankers Association is an industry trade group and professional association representing the United States' banking industry...
, offers the Loan Review Certificate Program for persons who review and approve loans. This program enhances the quality of reviews and improves the early detection of deteriorating loans, thereby contributing to the safety and soundness of the loan portfolio. The Certified Mortgage Banker (CMB) designation demonstrates the holder's superior knowledge, understanding, and competency in real estate finance. The Mortgage Bankers Association offers three CMB designations: residential, commerce, and master's. To obtain the CMB, the candidate must have 3 years of experience, earn educational credits, and pass an exam. Completion of these courses and programs generally enhances one’s employment and advancement opportunities.
Persons planning a career as a loan officer should be capable of developing effective working relationships with others, confident in their abilities, and highly motivated. For public relations
Public relations
Public relations is the actions of a corporation, store, government, individual, etc., in promoting goodwill between itself and the public, the community, employees, customers, etc....
purposes, loan officers must be willing to attend community events as representatives of their employer.
Capable loan officers may advance to larger branches of the firm or to managerial positions, while less capable workers—and those having weak academic preparation—could be assigned to smaller branches and might find promotion difficult without obtaining training to upgrade their skills. Advancement beyond a loan officer position usually includes supervising other loan officers and clerical staff.