Loan Officer
Program Summary
Loan officers typically help individuals and/or companies acquire the financial resources to buy, do, or invest in something – such as buying a car or a home, starting a new business, or investing in capital equipment.
Most specialize in either commercial, consumer, or mortgage loans where they facilitate lending by finding potential clients and assisting them in applying for loans. They also gather information about their clients to ensure the creditworthiness of the borrower and their likelihood of repaying the loan. Then, they advise prospective loan applicants to determine the most appropriate type of loan for the application and explain the specific requirements and restrictions associated with those loans.
In many instances, loan officers act as salespeople. Commercial loan officers, for example, contact firms to determine their needs for loans and persuade the company to obtain the loan from his or her own institution. Similarly, mortgage loan officers develop relationships with commercial and residential real estate agencies so that, when a property is sold, the real estate agent might recommend that loan officer for financing.
After a client completes a loan application, the loan officer analyzes and verifies the information. Often, loan officers can access an individual’s credit history online by obtaining a credit “score.” In the case of commercial loans, the loan officer may have to evaluate a company’s financial statements and/or conduct a risk assessment. Loan officers
As banks and other financial institutions begin to offer new types of loans and a growing variety of financial services, loan officers will have to keep abreast of these new product lines so that they can meet their customers’ needs.
Employment Trends
- Approximately nine of ten loan officers work for commercial banks, savings institutions, credit unions, and related financial institutions.
- Working as a loan officer usually involves considerable travel – sometimes to other cities or state. Commercial and mortgage loan officers, for example, frequently work away from their offices and rely on laptop computers, cellular telephones, and pagers to keep in contact with their employers and clients.
- The rising demand for loans is stimulating the development of new computer technologies to simplify the process and allow for faster processing and approval of loans.
- Both the demand and the earnings for loan officers may fluctuate with the number of loans generated, rising substantially when the economy is good and interest rates are low.
Program Objectives
- Successful completion of each course earns a Certificate of Completion
- Skills development and preparation leading to professional credentialing
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FREQUENTLY ASKED QUESTIONS
- What professional credentialing is there for loan officers?
The Bank Administration Institute, an affiliate of the American Banker’s 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.
- Information about a career as a mortgage loan officer can be obtained from:
Mortgage Bankers Association, 1919 Pennsylvania Ave. NW., Washington, DC 20006. Internet: www.mortgagebankers.org
- State bankers’ associations can furnish specific information about job opportunities in their State. Also, individual banks can supply information about job openings and the activities, responsibilities, and preferred qualifications of their loan officers.