Loan Officer Job Description, Qualifications, and Outlook
The loan officer job description implies working in commercial banks, mortgage companies, credit unions, and other similar financial institutions. Most consumer and commercial loan officers tend to work full time. While many mortgage loan officers tend to work long, tiring hours. Plus, it’s quite common to have to travel and visit clients.
The loan officer term is quite vague. When talking about one’s duties and responsibilities, a loan officer can also be a mortgage loan officer or a commercial loan officer, it can vary widely from one place of employment to another. However, most of the main requirements and basic duties are the same.
Job Overview: What Does a Loan Officer Professional Do?
Generally responsible for the evaluation, authorization, and recommended approval of loan applications, most loan officers require at least a bachelor’s degree and tend to receive moderate amounts of training on the job. Some of them, such as mortgage loan officers, have to be licensed or certified.
Loan Officer Job Duties
- Analyzing the financial status, credits, and property evaluations of applicants and meeting with them.
- Obtaining and compiling copies of corporate financial statements, credit histories, and other such financial information of clients.
- Answering the clients’ questions about the loan process, taking care of customer complaints and fixing them.
- Explaining the types of loans, different types of credit options, and the terms of the offered services.
- Reviewing loan agreements and determining how feasible offering a loan is.
- Approving or denying loans within certain limits and referring higher loans to the responsible parties.
- Setting credit policies, lines, standards, and procedures in collaboration with the senior management
- Submitting applications to credit analysts and making sure that said applications get verified and recommended.
- Computing and designing payment schedules, as well as updating and reviewing loan and credit files.
- Helping resolve mortgage application problems.
- Helping clients identify realistic financial goals and coming up with ways to reach those goals.
- Negotiating payment arrangements with delinquent loan customers.
- Analyzing potential loan markets and locating prospects for different loans.
- Developing referral networks and sending reports to customers.
- Forwarding irreconcilable accounts for collector action and arranging for the maintenance and liquidation of properties owned by delinquent accounts.
- Petitioning courts to transfer deeds and titles of collateral to the bank.
Loan Officer Job Essential Skills
Interpersonal skills. A loan officer works with people mostly, therefore he should possess exceptional interpersonal and communication skills. He should also present an inclination toward customer satisfaction. This professional must be able to guide customers through the application process and answer their questions properly. As well as analyze the applicant’s financial information and make the decision whether to award the loan or not.
Detail-oriented. Loan officers must pay attention to details since the profitability of a loan depends on each piece of information from an application to be correct and properly assessed.
Computer skills. These professionals must have a good knowledge of computers. Also, previous experience is useful for them to fulfill their duties successfully. Just as important is the knowledge of banking apps and software.
Sales skills. A perfect understanding of direct and indirect lending practices and services is also mandatory. Loan officers also need to seek out new clients, therefore they need to show great persuasion and sales skills. They promote their lending institution so they need to act as salespeople and contact individuals or firms to determine their need for a loan.
Becoming a Loan Officer Professional
Other than the educational mandates for the loan officer job description, one must possess a number of personal qualities to fit the position. Without these qualities, easily recognizable by any trained HR representative, it is borderline impossible to get a job as a loan officer. Some employers may not care about some of these requirements, while others may ask for more than these. It all depends on the type of loan officer job in question and each employer.
Qualifications and Training
Of course, the regular duties and responsibilities of your average loan officer can differ significantly from industry to industry, as well as with the level of experience of each employee. The employer also reserves the right to attribute more or to reduce some of the responsibilities of each employee.
So, a bank loan officer job description will be slightly different than the consumer loan officer job description. Also, a senior loan officer job description may include a higher salary and fewer responsibilities than that of someone who just recently got the job.
To get a job as a loan officer, aspiring employees need a bachelor’s degree in finance or in a related subject. Additionally, most new employees will have to go through training while on the job, so they can be taught the inner workings of their future occupation.
According to the Bureau of Labor Statistics, mortgage loan officers also have to be licensed and certified nationwide before they get hired.
According to the Bureau of Labor Statistics, the median yearly salary for loan officers in 2015 was $63,430. The estimation is that their employment rate will grow by eight percent by 2024, at the same rate as the average for all occupations. However, the long working hours, stressful environment, and extensive education required for the position may seem daunting when compared to the salary.
Having perhaps one of the most stressful and poorly paid jobs in the finance industry, loan officers tend to be severely overworked. The loan officer job description is very different from one place of employment to another and from industry to industry. So much so that many report a need for help with determining for which job they should apply.
The typical work week for anyone with the loan officer job description is around 50 hours long. With the usual schedule being 10 am to 8 pm. Of course, these always vary from employer to employer and from industry to industry.
There usually are no shifts and no working nights or weekends. However, they can expect a need for overtime, working holidays and traveling.
Job Outlook & Advancement Opportunities
According to the Bureau of Labor Statistics, the rate of employment will rise by 8% by 2024. That is about the same rate as the average for all occupations in the United States. The level of growth is attributed to the fluctuating economy, to low-interest rates, and to population growth. The recent increase in the number of small businesses and the success seen by some of these are also a definite contributing factor to the average increase in the number of open positions.
When talking about advancement possibilities, the loan officer might become a Senior loan officer, that usually happens when they are a bit more experienced and have been doing the job for a little while longer. However, they can advance externally if they are recruited by other companies that pay higher commissions, or even a base salary. Some of these professionals can also apply for a broker’s license or as a means for advancement, eventually employing their own loan officers.
The loan officer job description and salary make the job not as appealing as it once was. However, if you are interested in following this career path, either temporary or for a longer period, you can follow this link for an example of a loan officer job resume. You can also find there some more information about the loan officer job description.