Loan Officer Job Description Information

In any economy, people have to take out loans to invest in certain things, such as a new business, a college education or a house. Banks typically hire individuals to regulate the distribution of these loans, and these employees are known as loan officers. A loan officer essentially helps customers apply for and obtain loans.

 

Duties

• A loan officer acts as the middleman between the loan seeker and the bank. The officer's goal is to give the consumer the credit he needs while making sure that the loan is a good deal for the bank.
  Loan officers also can work as salespeople, contacting businesses to ask if they are in need of new sources of funding. They also can act as collection agents for delinquent loans and assist in the approval of loans as underwriters.

Work Life

• The loan officer may not spend much time in the office. Rather, she is usually visiting prospective clients. Loan officers should have their own cars, and they must have laptops and cell phones. A loan officer usually works a 40-hour workweek, but it can be longer, depending on the number of clients he manages.

Education

• Most loan officer positions require a bachelor's degree. While any type of degree is acceptable, the degree typically is in finance, economics, statistics or a related major. There are no additional certifications or training sessions, however, companies usually train new employees about such issues as company policy, products and services offered and any software programs or hardware that's exclusive to the company. Becoming a notary public can be helpful in assisting clients with completing paperwork.

Experience

• A loan officer position is typically considered an entry-level job, so minimal previous experience is needed. However, you can bolster your chances by working in any other position that involves finances. Collegiate activities can include being the treasurer of a club or organization and taking classes in personal finance. A good loan officer is also a good communicator and is highly organized.

Job Availability

• When banks have money to invest, or loan, more loan officers are needed. The Bureau of Labor Statistics states that there were 373,000 loan officers in 2006, with nine out of every 10 jobs representing a major bank. During a recession, the amount of positions is likely to be much lower. However, the number of jobs is predicted to increase by 11 percent between 2006 and 2016, but the Bureau of Labor Statistics warns that the increase of Internet shopping for mortgages and other loans could alter that prediction.

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Loan Officer Salary Information

Loan officers help individuals and businesses obtain financing for major purchases or emergency expenses. The average salary for loan officers depends upon a variety of factors, including work experience and education level, according to January 2010 reporting on Payscale.com.

 

Work Experience

• With less than one year of experience in the field, loan officers average annual salaries of $27,732 to $39,494. After 20 years of experience or more, officer earned an average of $39,394 to $69,519.

Industry

• Loan officers employed by banks averaged annual salaries of $31,497 to $47,802, while those who worked for credit unions earned an average of $29,042 to $38,534. Those who worked for mortgage brokers averaged $36,427 to $96,978.

Education

• Loan officers with bachelor of science in business management degrees averaged $35,985 to $50,773. Those with only high school diplomas earned an average of $25,621 to $40,951.

Geography

• Loan officers working in California averaged the highest annual salaries at $39,756 to $80,827. Other high-paying states for loan officers were Illinois, New York and Florida.

Bonuses and Commission

• In addition to their regular compensation, loan officers reported earning average annual bonuses of $1,179 to $3,100 and average annual commission payments of $6,700 to $40,968.

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How to Become a Loan Officer

A loan officer is the person who directly originates the loan from the loan company. If working at a bank or other financial institution, the loan officer will help you obtain a loan from her place of business. If working in a real estate group, the loan officer will look at different institutions for the best loan that you qualify for.

Take courses at the local colleges or universities for degrees in finance, economics or a related field. To work in banks and move up the career ladder, institutions look for degreed applicants first. If not able to get a degree, start working in the field and educate yourself on the lingo and processes. This will take much longer, and you will eventually hit a ceiling where you will need a degree.

Market yourself. Go to dinners, parties and gatherings with your business cards. Your child's school activities and extracurricular sports all have parents who may be looking for a loan now or in the near future. Don't be pushy, and don't get offended when you find your cards in the couch cushions; they may have a loan officer in the family.

Take technology-based courses to keep up with the growing need to be computer literate. This will be a huge plus on your resume since the field needs fewer loan officers due to the growing ease of finding loans on the Internet.

Be open, friendly and honest with all the potential customers and real estate contacts you make, even if you don't like the person. Word of mouth and day-to-day contacts can bring you business.

Join a team or office that consists of real estate agents, a mortgage broker and loan processors. This group of people will all be interdependent on each other to make sales and money. You may have to share your fees, but it will get your name in business circles and educate you on the processes that each person does.

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