Median annual earnings of loan counselors were $32,010 in 2002. The middle 50 percent earned between $26,330 and $41,660. The lowest 10 percent earned less than $22,800, while the top 10 percent earned more than $57,400.
Median annual earnings of loan officers were $43,980 in 2002. The middle 50 percent earned between $32,360 and $62,160. The lowest 10 percent earned less than $25,790, while the top 10 percent earned more than $88,450. Median annual earnings in the industries employing the largest numbers of loan officers in 2002 were:
| Activities related to credit intermediation | $47,240 |
| Management of companies and enterprises | 46,420 |
| Nondepository credit intermediation | 44,770 |
| Depository credit intermediation | 41,450 |
The form of compensation for loan officers varies. Most loan officers are paid a commission that is based on the number of loans they originate. In this way, commissions are used to motivate loan officers to bring in more loans. Some institutions pay only salaries, while others pay their loan officers a salary plus a commission or bonus based on the number of loans originated. Banks and other lenders sometimes offer their loan officers free checking privileges and somewhat lower interest rates on personal loans.
According to a salary survey conducted by Robert Half International, a staffing services firm specializing in accounting and finance, mortgage loan officers earned between $36,000 and $45,750 in 2002; consumer loan officers with 1 to 3 years of experience earned between $42,250 and $56,750; and commercial loan officers with 1 to 3 years of experience made between $48,000 and $64,500. With over 3 years of experience, commercial loan officers made between $66,000 and $92,000, and consumer loan officers earned between $55,500 and $75,750. Earnings of loan officers with graduate degrees or professional certifications were approximately 10 to 15 percent higher than these figures. Loan officers who are paid on a commission basis usually earn more than those on salary only, and those who work for smaller banks generally earn less than those employed by larger institutions.
For many individuals, taking out a loan may be the only way to afford a house, car, or college education. For businesses, loans likewise are essential to start many companies, purchase inventory, or invest in capital equipment. Loan officers facilitate this lending by finding potential clients and assisting them in applying for loans. Loan officers also gather personal information about clients and businesses to ensure that an informed decision is made regarding the creditworthiness of the borrower and the probability of repayment. Loan counselors provide guidance to prospective loan applicants who have problems qualifying for traditional loans. The guidance they provide may include determining the most appropriate type of loan for a particular customer, and explaining specific requirements and restrictions associated with the loan. Some of the functions of a loan counselor also may be performed by a loan officer. Within some institutions, such as credit unions, loan counselor is an alternate title for loan officer.
Loan officers usually specialize in commercial, consumer, or mortgage loans. Commercial or business loans help companies pay for new equipment or expand operations; consumer loans include home equity, automobile, and personal loans; mortgage loans are made to purchase real estate or to refinance an existing mortgage. As banks and other financial institutions begin to offer new types of loans and a growing variety of financial services, loan officers will have to keep abreast of these new product lines so that they can meet their customers' needs.
In many instances, loan officers act as salespeople. Commercial loan officers, for example, contact firms to determine their needs for loans. If a firm is seeking new funds, the loan officer will try to persuade the company to obtain the loan from his or her institution. Similarly, mortgage loan officers develop relationships with commercial and residential real estate agencies so that, when an individual or firm buys a property, the real estate agent might recommend contacting a specific loan officer for financing.
Once this initial contact has been made, loan officers guide clients through the process of applying for a loan. This process begins with a formal meeting or telephone call with a prospective client, during which the loan officer obtains basic information about the purpose of the loan and explains the different types of loans and credit terms that are available to the applicant. Loan officers answer questions about the process and sometimes assist clients in filling out the application.
After a client completes the application, the loan officer begins the process of analyzing and verifying the information on the application to determine the client's creditworthiness. Often, loan officers can quickly access the client's credit history by computer and obtain a credit “score.” This score represents the creditworthiness of a person or business as assigned by a software program that makes the evaluation. In cases in which a credit history is not available or in which unusual financial circumstances are present, the loan officer may request additional financial information from the client or, in the case of commercial loans, copies of the company's financial statements. With this information, loan officers who specialize in evaluating a client's creditworthiness—often called loan underwriters—may conduct a financial analysis or other risk assessment. Loan officers include this information and their written comments in a loan file, which is used to analyze whether the prospective loan meets the lending institution's requirements. Loan officers then decide, in consultation with their managers, whether to grant the loan. If the loan is approved, a repayment schedule is arranged with the client.
A loan may be approved that would otherwise be denied if the customer can provide the lender with appropriate collateral—property pledged as security for the repayment of a loan. For example, when lending money for a college education, a bank may insist that borrowers offer their home as collateral. If the borrowers were ever unable to repay the loan, the home would be seized under court order and sold to raise the necessary money.
Some loan officers, referred to as loan collection officers, contact borrowers with delinquent loan accounts to help them find a method of repayment in order to avoid their defaulting on the loan. If a repayment plan cannot be developed, the loan collection officer initiates collateral liquidation, in which the lender seizes the collateral used to secure the loan—a home or car, for example—and sells it to repay the loan.
.Employment of loan counselors and officers is projected to grow about as fast as the average for all occupations through 2012. College graduates and those with banking, lending, or sales experience should have the best job prospects. Employment growth stemming from economic expansion and population increases—factors that generate demand for loans—will be partially offset by increased automation that speeds lending processes and by the spread of alternative methods of applying for and obtaining loans. Job opportunities for workers in these occupations are influenced by the volume of loan applications, which is determined largely by interest rates and by the overall level of economic activity. However, besides those resulting from growth, additional job openings will result from the need to replace workers who retire or otherwise leave the occupation permanently.
The use of credit scoring has made the loan evaluation process much simpler than in the past, and even unnecessary in some cases. Credit scoring allows loan officers, particularly loan underwriters, to evaluate many more loans in much less time, thus increasing loan officers' efficiency. In addition, the mortgage application process has become highly automated and standardized. This simplification has enabled online mortgage loan vendors to offer loan shopping services over the Internet. Online vendors accept loan applications from customers over the Internet and determine which lenders have the best interest rates for particular loans. With this knowledge, customers can go directly to the lending institution, thereby bypassing mortgage loan brokers. Shopping for loans on the Internet—though currently not a widespread practice—is expected to become more common over the next 10 years, particularly for mortgages, thus reducing demand for loan officers.
Although loans remain a major source of revenue for banks, demand for new loans fluctuates and affects the income and employment opportunities of loan officers. When the economy is on the upswing or when interest rates decline dramatically, there is a surge in real estate buying and mortgage refinancing that requires loan officers to work long hours processing applications and induces lenders to hire additional loan officers. Loan officers often are paid by commission on the value of the loans they place, and some have high earnings when demand for mortgages is high. When the real estate market slows, loan officers often suffer a decline in earnings and may even be subject to layoffs. The same applies to commercial loan officers, whose workloads increase during good economic times as companies seek to invest more in their businesses. In difficult economic conditions, loan collection officers are likely to see an increase in the number of delinquent loans.
.Loan officer positions generally require a bachelor's degree in finance, economics, or a related field. Most employers prefer applicants who are familiar with computers and their applications in banking. For commercial or mortgage loan officer jobs, training or experience in sales is highly valued by potential employers. Loan officers without college degrees usually advance to these positions from other jobs in an organization after acquiring several years of work experience in various other occupations, such as teller or customer service representative.
There are currently no specific licensing requirements for loan counselors and officers working in banks or credit unions. Training and licensing requirements for loan counselors and officers who work in mortgage banks or brokerages vary by State. These criteria also may vary depending on whether workers are employed by a mortgage bank or mortgage brokerage.
Various banking-related associations and private schools offer courses and programs for students interested in lending, as well as for experienced loan officers who want to keep their skills current. Completion of these courses and programs generally enhances one's employment and advancement opportunities.
Persons planning a career as a loan officer or counselor should be capable of developing effective working relationships with others, confident in their abilities, and highly motivated. For public relations purposes, loan officers must be willing to attend community events as representatives of their employer.
Capable loan officers and counselors may advance to larger branches of the firm or to managerial positions, while less capable workers—and those having weak academic preparation—could be assigned to smaller branches and might find promotion difficult without obtaining training to upgrade their skills. Advancement beyond a loan officer position usually includes supervising other loan officers and clerical staff.
.Loan officers help the public manage financial assets and secure loans. Occupations that involve similar functions include those of securities and financial services sales representatives, personal financial advisors, real estate brokers and sales agents, and insurance sales agents.
Information about a career as a mortgage loan officer can be obtained from:
State bankers' associations can furnish specific information about job opportunities in their State. Also, individual banks can supply information about job openings and the activities, responsibilities, and preferred qualifications of their loan officers.
Includes mortgage loan officers and agents, collection analysts, loan servicing officers, and loan underwriters. It does not involve solving the problem, only recognizing there is a problem. For example, an electrician must have completed three or four years of apprenticeship or several years of vocational training, and often must have passed a licensing exam, in order to perform the job. Job Training Employees in these occupations usually need one or two years of training involving both on-the-job experience and informal training with experienced workers. Job Zone Examples These occupations usually involve using communication and organizational skills to coordinate, supervise, manage, or train others to accomplish goals.
Summary of: http://online.onetcenter.org/link/summary/13-2072.00
When they find information is missing, they ask applicants about it. Loan officers also review applications after the interview to make sure they are complete. Finally, loan officers fill out the final paperwork with applicants. They use computers to process data, track loans, and organize their work. They like to be treated fairly and have supervisors who will back them up.
Summary of: http://www.iseek.org/sv/13000.jsp?id=100362
The number of loan applications is increasing, but because of technological advancements that have made the process smoother there aren't necessarily going to be a dramatic increase lending jobs. Because income is based on loan generation, when the market is weak, income will be weak, and when the market is strong, income will be strong. Loan officers help individuals and businesses in the loan application process. They collect client information, and assess their credit and ability to repay the loan. They help clients select appropriate loans and clarify loan details.
Summary of: http://www.careeroverview.com/loan-officer-careers.html
Mortgage Brokers Tools for Loan Professionals, Originators, Processors, Underwriters and Appraisers. Pick and choose the time savers you want to use, no requirement to use any certain service.
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Are you in danger of debt problems.
Summary of: http://careerplanning.about.com/od/occupations/p/loan_officer.htm
1232 Loan Officers Loan officers examine, evaluate and process credit and loan applications. They are employed by banks, trust companies, credit unions and similar financial institutions. Employment requirements Completion of secondary school and extensive general banking experience or A bachelor's degree or college diploma related to commerce or economics is required. Completion of a loan or credit training program, ranging from six to twelve months, is usually required. Additional information Progression to credit and loan management positions is possible with experience.
Summary of: http://www23.hrdc-drhc.gc.ca/2001/e/groups/1232.shtml
Use each field to narrow down your job search resultsor click "Search Loan Officer Jobs" to show all matching jobs. positions nationwide. LO's work with customers to help them make their financial goals a reality. for an excellent opportunity in Mississippi. Salary and other information will be discussed during the interview.
Summary of: http://loan.officer.jobs.topusajobs.com/
Back to Top Loan officers help people apply for loans. Loan counselors help people who want a loan but have problems that could keep them from getting it. Commercial loan officers work with businesses. This can be necessary for more complicated loans. It helps to know a lot about computers and how they are used in banking.
Summary of: http://www.bls.gov/k12/money03.htm
Average employment growth is expected for loan officers despite rising demand for loans, because technology is making loan processing and approval simpler and faster. Commercial loan officers, for example, contact firms to determine their needs for loans. Mortgage loan officers often work out of their home or car, visiting offices or homes of clients while completing loan applications. Approximately 40 percent of loan officers and counselors were employed by commercial banks, savings institutions, and credit unions. The use of credit scoring has made the loan evaluation process much simpler than in the past, and even unnecessary in some cases.
Summary of: http://www.bls.gov/oco/ocos018.htm