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Degrees and Schools
Commercial loan officers typically have a bachelor's degrees in finance, economics or a related field. Some private schools and banking associations provide programs and courses in the subject.
The Certified Mortgage Banker designation, provided by the Mortgage Bankers Association can help individuals get a job in the mortgage field. Candidates have to meet qualifications which includes passing an exam.
Classes
Commercial loan officers typically study subjects such as:
- Financial statements
- Business accounting
- Cash flow analysis
- Banking and financial software
Online Classes and Programs
For those interested in becoming commercial loan officers, many schools offer online programs in finance and economics. There are some loan officer certificate programs available online.
Employment Requirements
Loan officers typically need to have a high school diploma. They usually receive on-the-job training. Commercial loan officers often need a bachelor's degree in finance, economics or a related subject. Large financial institutions usually require loan officers to have a bachelor's degree.
Previous lending, banking or sales experience is typically valued by employers. Most employers prefer candidates who are competent with computers and have a solid foundation with banking and financial software.
Most loan officers work for savings institutions, commercial banks, credit unions and related financial institutions. In addition, federal legislation requires that all mortgage loan officers have a license. There are no specific licensing requirements for other types of loan officers.
How to Evaluate Schools and Programs
While evaluating schools, prospective students should consider getting answers to the following questions:
- Class Size - How many students are in the average class? Do teachers offer individualized attention?
- Job Placement - Does the school offer job placement services?
- School's Reputation - Does the school have a good reputation with local employers?
- Financial Aid - What types of financial aid are available? Is the school qualified to provide federal financial aid?
- Accreditation - Is the school accredited by an organization which has a good reputation?
Loan Officers Job Description
What do loan officers do? They help their clients apply for loans including people who are having difficulties qualifying for traditional loans. They also evaluate information to determine the likelihood that businesses and individuals will repay the loan. Some loan officers work for a broker and some work for a bank or a lender.
Many loan officers are also salespersons and spend a lot of time searching for customers. Sales opportunities significantly increase during an active real estate market. Most loan officers only receive commissions. They typically specialize in consumer, commercial or mortgage loans. Some of their responsibilities are shown below:
- Assist clients with the process of applying for a loan
- Determine the credit worthiness of the client
- Assess applicants' financial, property and credit status to determine if they qualify for a loan
- Use underwriting software to determine if individuals are eligible for a loan
- Approve loans within specific limits
- Evaluate and update loan and credit files
- Obtain pertinent financial information
- Market bank products to individuals and companies
- Negotiate payment arrangements with clients who have delinquent loans
Resources
- Mortgage Bankers Association
- National Association of Ethical Loan Officers
- Mortgage Bankers Association
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