What Loan Officers Do

Loan officers evaluate, authorize, or recommend approval of loan applications for people and businesses.

Work Environment

Most loan officers are employed by commercial banks, credit unions, mortgage companies, and related financial institutions. Most commercial and consumer loan officers work full time, and many mortgage loan officers work extensive hours. Except for consumer loan officers, traveling to visit clients is common.

How to Become a Loan Officer

Most loan officers need a bachelor’s degree and receive on-the-job training. Mortgage loan officers must be licensed.

Job Outlook

Employment of loan officers is projected to grow 8 percent from 2014 to 2024, about as fast as the average for all occupations. The need for loan officers fluctuates with the economy, generally increasing in times of economic growth, low interest rates, and population growth—all of which create demand for loans.

Growth & Trends

This occupation supported 296,900 jobs in 2012 and 303,200 jobs in 2014, reflecting an increase of 2.1%. In 2012, this occupation was projected to increase by 7.7% in 2022 to 319,800 jobs. As of 2014, to keep pace with prediction, the expected number of jobs was 301,400, compared with an observed value of 303,200, 0.6% higher than expected. This indicates current employment trends are about on track with the 2012 trend within this occupation. In 2014, this occupation was projected to increase by 8.3% in 2024 to 327,700 jobs. Linear extrapolation of the 2012 projection for 2022 results in an expected number of 324,300 jobs for 2024, 1.0% lower than the 2014 projection for 2024. This indicates expectations for future employment trends are about on track with the 2012 trend within this occupation.

Loan Officers Employment and Labor Information 2023

Loan Officers Employment Brief:

Evaluate, authorize, or recommend approval of commercial, real estate, or credit loans. Advise borrowers on financial status and payment methods. Includes mortgage loan officers and agents, collection analysts, loan servicing officers, loan underwriters, and payday loan officers.

Loan Officers Job Description

Here is a Job Description an employer might post for potential Loan Officers.

Loan Officers Responsibilities and Duties:

• Meet with applicants to obtain information for loan applications and to answer questions about the process.
• Obtain and compile copies of loan applicants' credit histories, corporate financial statements, and other financial information.
• Analyze potential loan markets and develop referral networks to locate prospects for loans.
• Explain to customers the different types of loans and credit options that are available, as well as the terms of those services.
• Handle customer complaints and take appropriate action to resolve them.
• Submit applications to credit analysts for verification and recommendation.
• Approve loans within specified limits, and refer loan applications outside those limits to management for approval.
• Prepare reports to send to customers whose accounts are delinquent, and forward irreconcilable accounts for collector action.
• Set credit policies, credit lines, procedures and standards in conjunction with senior managers.
• Stay abreast of new types of loans and other financial services and products to better meet customers' needs.

Typical Daily Tasks of Loan Officers:

• Getting Information: Gather financial records. Interview clients to gather financial information.
• Evaluating Information to Determine Compliance with Standards: Examine financial records.
• Establishing and Maintaining Interpersonal Relationships.
• Processing Information: Verify accuracy of financial information. Verify accuracy of records. Verify application data to determine program eligibility.
• Analyzing Data or Information: Analyze market conditions or trends.
• Working with Computers.
• Communicating with People Outside the Organization: Inform individuals or organizations of status or findings.
• Making Decisions and Solving Problems: Authorize financial actions.
• Communicating with Supervisors, Peers, or Subordinates: Confer with others about financial matters.
• Organizing, Planning, and Prioritizing Work.

Loan Officers Skills and Requirements:

• GraphicsWorking with pictures in graphics programs or other applications, including creating simple graphics, manipulating the appearance, and inserting graphics into other programs.
• Speaking Talking to others to convey information effectively.
• Management of Financial Resources Determining how money will be spent to get the work done, and accounting for these expenditures.
• Judgment and Decision Making Considering the relative costs and benefits of potential actions to choose the most appropriate one.
• Installation Installing equipment, machines, wiring, or programs to meet specifications.
• Systems Evaluation Identifying measures or indicators of system performance and the actions needed to improve or correct performance, relative to the goals of the system.
• DatabasesUsing a computer application to manage large amounts of information, including creating and editing simple databases, inputting data, retrieving specific records, and creating reports to communicate the information.
• PresentationsUsing a computer application to create, manipulate, edit, and show virtual slide presentations.
• Reading Comprehension Understanding written sentences and paragraphs in work-related documents.
• Science Using scientific rules and methods to solve problems.

Loan Officers Education and Training:

Typical education for include: Bachelor's degree.

Loan Officers Salary, Wages, and Salary and Job Outlook

Loan Officers average pay is: $65740 per year according to the U.S. Bureau of Labor Statistics. Employees who work in Securities, Commodity Contracts, and Other Financial Investments and Related Activities are the highest paid making $54.86, while Nondepository Credit Intermediation make the least at $38.39 per hour.Here are the top city/metro areas with the highest paying salaries for a Loan Officers: