Loan officers essential career information:
- 2011 median pay: $58,030
- 2011, number of jobs: 284,530
- Employment growth forecast, 2010-2020: 14 percent
- Entry level education requirements: High school diploma or equivalent
Loan officers; what they do:
Loan officers have a major responsibility which can greatly affect long-term finances for individuals, families, and businesses. Loan officer careers include conducting a great deal of research and meeting with applicants personally before determining if the applicant meets the qualifications for a loan and is capable of repayment.
Loan officers don’t always wait for clients to come to them; they also seek out businesses or individuals, inquire if a loan is needed, and offer their services. Loan officers walk individuals through the loan process.
Underwriting is the process a loan officer uses when determining who qualifies for a loan and who does not. Depending on the loan officer, they may conduct the underwriting manually, using specific formulas, or use underwriting software. Some firms use a mixture of underwriting software and loan officers who can include any necessary additional information into the final decision.
Loan officers job titles:
- Branch Manager
- Mortgage Loan Officer
- Commercial Loan Officer
- Consumer Loan Officer
- Loan Collection Officer
- Loan Underwriter
- Mortgage Loan Originator
- Business Banking Officer
- Corporate Banking Officer
Loan Officers Education, Certification and License Requirements
People seeking a loan officer career typically need a high school diploma. Some colleges and community colleges offer degrees in mortgage banking. Loan officers traditionally receive on-the-job training for a few months. If the employer uses underwriting software, a new loan officer may be required to take classes to learn the software.
Loan officers programs cover subjects such as:
- Bank teller education
- Mortgage banking
- Business statistics
People seeking a commercial loan officer career generally need a Bachelor of Finance, Bachelor of Business, Bachelor of Economics, or a bachelor’s degree in a related field. A mortgage loan officer must obtain a Mortgage Loan Originator (MLO) license.
Certifications are not required for loan officers but they certainly help demonstrate expertise and provide a hand up in job competition. Loan officers can become certified through The American Bankers Association and the Mortgage Bankers Association.
Loan Officers Job Outlook
Forecast: 14 percent employment growth from 2010 to 2020 for loan officer jobs, which is on par with the average for all occupations.
The economy greatly influences job demand for loan officers; when the economy is slow, loan officers are in much less demand. The increasing use of underwriting software slows down the demand for loan officers, as the software expedites the process.
Loan Officers Salary
- 2011 median annual wage: $58,030
- 2011, workers at the 75th percentile annual wage: $81,850
- 2011, workers at the 25% percentile annual wage: $41,890
- Credit intermediation and related activities industry
- Individual clients or businesses