Loan Officer Careers Information
Without the availability of loans, most people would be unable to buy homes or afford an education and many businesses simply could not operate. A Loan officer is the person in charge processing the loans that have become the bedrock of our economy.
Loan Officer Careers & Degrees
- Post University: Online
- Bachelor Degree: B.S. in Business Administration - Finance
- Bachelor Degree: B.S. in Finance
- Bachelors: Business Administration / Finance
- Bachelors: Finance
American Intercontinental University: Online
Colorado Technical University - Undergraduate: Undergraduate - Online
For a person seeking a loan, let’s say to purchase a car, the loan officer will go over his financial records, both as self-reported and as reported by various credit agencies. Using this data, the loan officer will determine the client’s credit worthiness, what type of loan would be best, how much money to give, and the loan’s interest rate. For a business, the loan officer will look over the company’s books or, if it is a new company, its business plan to determine whether or not it is likely to pay back the loan before making any offers.
Within the field, there are a few different types of loan officer careers:
Loan underwriters are responsible for accessing the credit worthiness of a potential client; their sole job may be to work as a type of financial detective, doing the background work that keeps the bank from making bad loans.
Student loan officers specialize in the ever-expanding student loan industry and help students secure and understand the terms of their student loans.
Loan collection officers are charged with collecting money from delinquent accounts. Should a client be unable to repay a loan, loan collection officers will first try work out a new repayment schedule; if this proves unsuccessful, they will being the process of seizing collateral assets, which they will then sell to make money to repay the loan.
Loan Officer Careers Path
Most loan officers have a Bachelor’s degree in finance, economics, or business, though some may have only a high school diploma and work their way up after gaining experience in the industry. Because clients ask for loans for all kinds of things, loan officers need to be current on all types of industries and products so they can most accurately assess the relative risk of any loan.
Loan Officer Careers: Compatible Personality Traits
Excellent analytical skills, excellent oral and written communication skills, good with people, interested in a variety of industries, decisive, willing to work long hours, willing to travel for research purposes.
Loan Officer Careers: Salary Expectations
The average salary for a loan officer is $54,700 a year, with the middle fifty percent earning between $39,710 and $76,860. Experience and specialization, however, can make a difference.
Some loan officers earn commissions based on the number of loans they process while others are paid a straight salary. As a perk, some loan officers are given better rates on the loans they take out at their home institution.
Loan Officer Careers: Job Outlook
The number of positions for loan officers is expected to grow about as fast as average for all industries in the coming years.The Bureau of Labor Statistics projects that the field will grow by 10% by 2018.
While increasing populations and businesses will demand more loans, computers have begun automating many processes that used to be done by persons. New loan officers will be needed to replace those who are retiring. Those with college degrees and/or more industry related experience stand the best chance of finding a job.
Those seeking to enter the field, however, should be aware that it is strongly tied to the economy. During times of recession, when loans are down, fewer loan officers are needed than in boom times. Nonetheless, those loan officers who can work as loan collection officers may sustain themselves in these times by working with delinquent accounts.
Slightly off the Footpath
- Financial Analyst
- Personal Financial Advisor
- Financial Lawyer
- Accountant
Source: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2010-11 Edition, Psychologists, on the Internet at http://www.bls.gov/oco/ocos018.htm (visited November 8, 2011).
