Loan Officer

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.

On the job, you would:

Approve loans within specified limits, and refer loan applications outside those limits to management for approval.
Meet with applicants to obtain information for loan applications and to answer questions about the process.
Analyze applicants' financial status, credit, and property evaluations to determine feasibility of granting loans.

Important Qualities

Decision-making skills. Loan officers must assess an applicant’s financial information and decide whether to approve the loan.

Detail oriented. Information on an application affects the potential profitability of a loan, so loan officers must pay attention to details.

Initiative. Loan officers may act as salespeople in promoting their lending institution, so they must contact people and businesses to determine their need for a loan.

Interpersonal skills. Loan officers must be able to guide customers through the application process and answer their questions.

Personality

A3	Your Strengths	Importance	Characteristics of this Career
		92%	Integrity - Job requires being honest and ethical.
		84%	Dependability - Job requires being reliable, responsible, and dependable, and fulfilling obligations.
		79%	Cooperation - Job requires being pleasant with others on the job and displaying a good-natured, cooperative attitude.
		77%	Attention to Detail - Job requires being careful about detail and thorough in completing work tasks.
		75%	Adaptability/Flexibility - Job requires being open to change (positive or negative) and to considerable variety in the workplace.
		75%	Initiative - Job requires a willingness to take on responsibilities and challenges.
		75%	Stress Tolerance - Job requires accepting criticism and dealing calmly and effectively with high-stress situations.
		73%	Analytical Thinking - Job requires analyzing information and using logic to address work-related issues and problems.
		72%	Self-Control - Job requires maintaining composure, keeping emotions in check, controlling anger, and avoiding aggressive behavior, even in very difficult situations.
		71%	Persistence - Job requires persistence in the face of obstacles.
		70%	Independence - Job requires developing one's own ways of doing things, guiding oneself with little or no supervision, and depending on oneself to get things done.
		69%	Achievement/Effort - Job requires establishing and maintaining personally challenging achievement goals and exerting effort toward mastering tasks.
		67%	Concern for Others - Job requires being sensitive to others' needs and feelings and being understanding and helpful on the job.
		66%	Leadership - Job requires a willingness to lead, take charge, and offer opinions and direction.
		63%	Social Orientation - Job requires preferring to work with others rather than alone, and being personally connected with others on the job.

A3	Your Strengths	Importance	Strengths
		95%	Conventional - Work involves following procedures and regulations to organize information or data, typically in a business setting. Conventional occupations are often associated with office work, accounting, mathematics/statistics, information technology, finance, or human resources.
		83%	Enterprising - Work involves managing, negotiating, marketing, or selling, typically in a business setting, or leading or advising people in political and legal situations. Enterprising occupations are often associated with business initiatives, sales, marketing/advertising, finance, management/administration, professional advising, public speaking, politics, or law.

A3	Your Strengths	Importance	Values of the Work Environment
		83%	Relationships - Occupations that satisfy this work value allow employees to provide service to others and work with co-workers in a friendly non-competitive environment. Corresponding needs are Co-workers, Moral Values and Social Service.
		72%	Independence - Occupations that satisfy this work value allow employees to work on their own and make decisions. Corresponding needs are Creativity, Responsibility and Autonomy.
		67%	Support - Occupations that satisfy this work value offer supportive management that stands behind employees. Corresponding needs are Company Policies, Supervision: Human Relations and Supervision: Technical.
		61%	Achievement - Occupations that satisfy this work value are results oriented and allow employees to use their strongest abilities, giving them a feeling of accomplishment. Corresponding needs are Ability Utilization and Achievement.
		61%	Recognition - Occupations that satisfy this work value offer advancement, potential for leadership, and are often considered prestigious. Corresponding needs are Advancement, Authority, Recognition and Social Status.
		56%	Working Conditions - Occupations that satisfy this work value offer job security and good working conditions. Corresponding needs are Activity, Compensation, Independence, Security, Variety and Working Conditions.

Aptitude

A3	Your Strengths	Importance	Abilities \| Cognitive, Physical, Personality
		75%	Oral Expression - The ability to communicate information and ideas in speaking so others will understand.
		75%	Oral Comprehension - The ability to listen to and understand information and ideas presented through spoken words and sentences.
		75%	Written Comprehension - The ability to read and understand information and ideas presented in writing.
		72%	Written Expression - The ability to communicate information and ideas in writing so others will understand.
		72%	Near Vision - The ability to see details at close range (within a few feet of the observer).
		69%	Speech Clarity - The ability to speak clearly so others can understand you.
		69%	Problem Sensitivity - The ability to tell when something is wrong or is likely to go wrong. It does not involve solving the problem, only recognizing that there is a problem.
		69%	Deductive Reasoning - The ability to apply general rules to specific problems to produce answers that make sense.
		69%	Inductive Reasoning - The ability to combine pieces of information to form general rules or conclusions (includes finding a relationship among seemingly unrelated events).
		69%	Speech Recognition - The ability to identify and understand the speech of another person.
		56%	Mathematical Reasoning - The ability to choose the right mathematical methods or formulas to solve a problem.
		56%	Number Facility - The ability to add, subtract, multiply, or divide quickly and correctly.
		53%	Information Ordering - The ability to arrange things or actions in a certain order or pattern according to a specific rule or set of rules (e.g., patterns of numbers, letters, words, pictures, mathematical operations).

A3	Your Strengths	Importance	Skills \| Cognitive, Physical, Personality
		57%	Reading Comprehension - Understanding written sentences and paragraphs in work-related documents.
		57%	Active Listening - Giving full attention to what other people are saying, taking time to understand the points being made, asking questions as appropriate, and not interrupting at inappropriate times.
		57%	Speaking - Talking to others to convey information effectively.
		57%	Critical Thinking - Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.
		55%	Writing - Communicating effectively in writing as appropriate for the needs of the audience.
		55%	Judgment and Decision Making - Considering the relative costs and benefits of potential actions to choose the most appropriate one.

Job Details

Responsibilities

Verify application data to determine program eligibility.

Authorize financial actions.

Compute debt repayment schedules.

Confer with others about financial matters.

Correspond with customers to answer questions or resolve complaints.

Inform individuals or organizations of status or findings.

Advise others on financial matters.

Develop financial plans for clients.

Educate clients on financial planning topics.

Maintain data in information systems or databases.

Assess financial status of clients.

Recommend products or services to customers.

Examine financial records.

Verify accuracy of records.

Authorize financial actions.

Interview clients to gather financial information.

Assess financial status of clients.

Interpret financial information for others.

Gather financial records.

Examine financial records.

Maintain data in information systems or databases.

Verify accuracy of financial information.

Compute debt repayment schedules.

Update professional knowledge.

Submit financial applications.

Correspond with customers to answer questions or resolve complaints.

Develop financial plans for clients.

Market products, services, or events.

Supervise employees.

Establish organizational guidelines or policies.

Analyze market conditions or trends.

Prepare financial documents, reports, or budgets.

A3	Your Strengths	Importance	Attributes & Percentage of Time Spent
		100%	Telephone - How often do you have telephone conversations in this job?
		100%	Electronic Mail - How often do you use electronic mail in this job?
		100%	Indoors, Environmentally Controlled - How often does this job require working indoors in environmentally controlled conditions?
		97%	Face-to-Face Discussions - How often do you have to have face-to-face discussions with individuals or teams in this job?
		96%	Contact With Others - How much does this job require the worker to be in contact with others (face-to-face, by telephone, or otherwise) in order to perform it?
		95%	Frequency of Decision Making - How frequently is the worker required to make decisions that affect other people, the financial resources, and/or the image and reputation of the organization?
		90%	Spend Time Sitting - How much does this job require sitting?
		89%	Deal With External Customers - How important is it to work with external customers or the public in this job?
		88%	Work With Work Group or Team - How important is it to work with others in a group or team in this job?
		88%	Importance of Being Exact or Accurate - How important is being very exact or highly accurate in performing this job?
		87%	Impact of Decisions on Co-workers or Company Results - What results do your decisions usually have on other people or the image or reputation or financial resources of your employer?
		86%	Freedom to Make Decisions - How much decision making freedom, without supervision, does the job offer?
		85%	Structured versus Unstructured Work - To what extent is this job structured for the worker, rather than allowing the worker to determine tasks, priorities, and goals?
		81%	Letters and Memos - How often does the job require written letters and memos?
		78%	Time Pressure - How often does this job require the worker to meet strict deadlines?
		76%	Level of Competition - To what extent does this job require the worker to compete or to be aware of competitive pressures?
		73%	Coordinate or Lead Others - How important is it to coordinate or lead others in accomplishing work activities in this job?
		65%	Responsibility for Outcomes and Results - How responsible is the worker for work outcomes and results of other workers?
		61%	Importance of Repeating Same Tasks - How important is repeating the same physical activities (e.g., key entry) or mental activities (e.g., checking entries in a ledger) over and over, without stopping, to performing this job?
		60%	Spend Time Using Your Hands to Handle, Control, or Feel Objects, Tools, or Controls - How much does this job require using your hands to handle, control, or feel objects, tools or controls?
		58%	Deal With Unpleasant or Angry People - How frequently does the worker have to deal with unpleasant, angry, or discourteous individuals as part of the job requirements?
		55%	Degree of Automation - How automated is the job?
		55%	Frequency of Conflict Situations - How often are there conflict situations the employee has to face in this job?
		54%	Physical Proximity - To what extent does this job require the worker to perform job tasks in close physical proximity to other people?
		71%	Duration of Typical Work Week - Number of hours typically worked in one week.

A3	Your Strengths	Importance	Tasks & Values
		88%	Getting Information - Observing, receiving, and otherwise obtaining information from all relevant sources.
		87%	Evaluating Information to Determine Compliance with Standards - Using relevant information and individual judgment to determine whether events or processes comply with laws, regulations, or standards.
		84%	Establishing and Maintaining Interpersonal Relationships - Developing constructive and cooperative working relationships with others, and maintaining them over time.
		82%	Processing Information - Compiling, coding, categorizing, calculating, tabulating, auditing, or verifying information or data.
		82%	Analyzing Data or Information - Identifying the underlying principles, reasons, or facts of information by breaking down information or data into separate parts.
		81%	Working with Computers - Using computers and computer systems (including hardware and software) to program, write software, set up functions, enter data, or process information.
		78%	Communicating with People Outside the Organization - Communicating with people outside the organization, representing the organization to customers, the public, government, and other external sources. This information can be exchanged in person, in writing, or by telephone or e-mail.
		77%	Making Decisions and Solving Problems - Analyzing information and evaluating results to choose the best solution and solve problems.
		76%	Communicating with Supervisors, Peers, or Subordinates - Providing information to supervisors, co-workers, and subordinates by telephone, in written form, e-mail, or in person.
		74%	Updating and Using Relevant Knowledge - Keeping up-to-date technically and applying new knowledge to your job.
		74%	Organizing, Planning, and Prioritizing Work - Developing specific goals and plans to prioritize, organize, and accomplish your work.
		70%	Documenting/Recording Information - Entering, transcribing, recording, storing, or maintaining information in written or electronic/magnetic form.
		67%	Judging the Qualities of Objects, Services, or People - Assessing the value, importance, or quality of things or people.
		67%	Identifying Objects, Actions, and Events - Identifying information by categorizing, estimating, recognizing differences or similarities, and detecting changes in circumstances or events.
		66%	Performing for or Working Directly with the Public - Performing for people or dealing directly with the public. This includes serving customers in restaurants and stores, and receiving clients or guests.
		65%	Interpreting the Meaning of Information for Others - Translating or explaining what information means and how it can be used.
		60%	Developing and Building Teams - Encouraging and building mutual trust, respect, and cooperation among team members.
		59%	Selling or Influencing Others - Convincing others to buy merchandise/goods or to otherwise change their minds or actions.
		59%	Performing Administrative Activities - Performing day-to-day administrative tasks such as maintaining information files and processing paperwork.
		57%	Resolving Conflicts and Negotiating with Others - Handling complaints, settling disputes, and resolving grievances and conflicts, or otherwise negotiating with others.
		56%	Thinking Creatively - Developing, designing, or creating new applications, ideas, relationships, systems, or products, including artistic contributions.
		54%	Monitoring Processes, Materials, or Surroundings - Monitoring and reviewing information from materials, events, or the environment, to detect or assess problems.
		52%	Coordinating the Work and Activities of Others - Getting members of a group to work together to accomplish tasks.

What Loan Officers Do

Consumer loan officers specialize in loans to people, such as loans for buying cars or paying for college tuition.

Loan officers evaluate, authorize, or recommend approval of applications for personal and business loans.

Duties

Loan officers typically do the following:

Contact businesses or people to ask if they need a loan
Talk with loan applicants to gather information and answer questions
Explain to applicants the different types of loans and the terms of each type
Obtain, verify, and analyze applicants’ financial information, such as credit rating and income
Review loan agreements to ensure that they comply with federal and state regulations
Approve loan applications or refer them to management for a decision

Loan officers use a process called underwriting to assess whether applicants qualify for loans. After collecting and verifying all the required financial documents, loan officers evaluate the information to determine an applicant’s need for a loan and ability to repay it. Most firms use underwriting software, which produces a loan recommendation based on the applicant’s financial status. Loan officers review the software output together with the evaluation of an applicant’s financial information to make a final decision.

The work of loan officers has customer-service and sales components. For example, loan officers often answer questions and guide customers through the application process. In addition, many loan officers market the products and services of their lending institution and actively solicit new business.

The following are common types of loan officers:

Commercial loan officers specialize in loans to businesses, which often use the loans to buy supplies and to upgrade or expand operations. Commercial loans frequently are larger and more complicated than other types of loans. Some commercial loans are so large and complex that no single bank will provide the entire amount requested. In such cases, loan officers may have to work with multiple banks to put together a package of loans.

Consumer loan officers specialize in loans to people for a variety of uses, such as buying a car or paying college tuition. For simple consumer loans, the underwriting process may be fully automated. However, the loan officer still guides applicants through the process. Some institutions—usually small banks and credit unions—rely on loan officers to complete the underwriting process instead of using underwriting software.

Mortgage loan officers specialize in loans that are used to buy real estate (property and buildings). Mortgage loan officers work on loans for both business and residential purchases. Often, these officers seek out clients, which requires them to develop relationships with real estate companies and other sources that can refer prospective borrowers.

Within these three fields, some loan officers specialize in a particular part of the loan process:

Loan collection officers contact borrowers who fail to make payments. They work with borrowers to help them find a way to keep paying off the loan. If the borrower continues to miss payments on secured loans—those involving collateral, such as a home or a car, that the borrower uses to secure the loan—these officers start the process of taking away the asset and selling it to repay the loan.

Loan underwriters specialize in evaluating whether a client is creditworthy. Underwriters collect, verify, and evaluate the financial information that clients provide on their loan applications and then use loan underwriting software to produce recommendations.

Work Environment

Loan officers held about 354,800 jobs in 2022. The largest employers of loan officers were as follows:

Credit intermediation and related activities	82%
Management of companies and enterprises	4
Automobile dealers	3

The credit intermediation industry includes commercial banks, savings institutions, and mortgage companies.

Loan officers who specialize in consumer loans usually work in offices. Mortgage and commercial loan officers may work outside the office and meet with clients at their homes or businesses.

Work Schedules

Most loan officers work full time, and some work more than 40 hours per week.

Getting Started

Education:

69%

Bachelor's Degree

13%

Some College Courses

How to Become a Loan Officer

Loan officers must pay attention to detail, as each piece of information on an application can have a major effect on the profitability of a loan.

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

Education

Loan officers typically need a bachelor’s degree, usually in a field such as business or finance. Because commercial loan officers analyze the finances of businesses applying for credit, they need to understand general business accounting, including how to read financial statements.

Some jobseekers may be able to enter the occupation without a bachelor’s degree if they have related work experience, such as in banking, customer service, or sales. Organizations that specialize in certain fields typically prefer to hire candidates who have some experience in those areas. For example, mortgage companies may prefer to hire candidates with residential mortgage or real estate experience.

Training

Once hired, loan officers typically receive some on-the-job training. This may be a combination of formal, company-sponsored training and informal training during the first few months on the job.

Licenses, Certifications, and Registrations

Mortgage loan officers must have a Mortgage Loan Originator (MLO) license. To become licensed, they must complete prelicensing courses, pass a national exam, and submit to background and credit checks. Licenses must be renewed annually, and individual states may have additional requirements. Check your state licensing agency website for more information.

Several banking associations, including the American Bankers Association and the Mortgage Bankers Association, as well as a number of schools, offer courses, training programs, or certifications for loan officers. Although not required, certification shows dedication and expertise and thus may enhance a candidate’s employment opportunities.

Job Outlook

Employment of loan officers is projected to grow 3 percent from 2022 to 2032, about as fast as the average for all occupations.

About 25,300 openings for loan officers are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.

Employment

Increased demand for loan officers is expected as both businesses and individuals seek credit to finance commercial investments and personal spending. Loan officers will be needed to evaluate the creditworthiness of applicants and determine the likelihood that loans will be paid back in full and on time.

However, the decline of bank branches and the increased use of productivity-enhancing technology in loan processing are expected to slow employment growth.

Contacts for More Information

For more information about certification and training for loan officers, visit

American Bankers Association (ABA)

For more information about a career as a mortgage loan officer, visit

Mortgage Bankers Association (MBA)

For more information about licensing for mortgage loan officers, visit

Nationwide Multistate Licensing System (NMLS)

State bankers associations have 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.

Similar Occupations

This table shows a list of occupations with job duties that are similar to those of loan officers.

Occupation	Job Duties	Entry-Level Education	Median Annual Pay, May 2022
Financial Analysts	Financial analysts guide businesses and individuals in decisions about expending money to attain profit.	Bachelor's degree	$96,220
Financial Examiners	Financial examiners ensure compliance with laws that govern institutions handling monetary transactions.	Bachelor's degree	$82,210
Personal Financial Advisors	Personal financial advisors provide advice to help individuals manage their money and plan for their financial future.	Bachelor's degree	$95,390
Tax Examiners and Collectors, and Revenue Agents	Tax examiners and collectors, and revenue agents determine how much is owed in taxes and collect tax from individuals and businesses on behalf of the government.	Bachelor's degree	$57,950
Insurance Sales Agents	Insurance sales agents contact potential customers and sell one or more types of insurance.	High school diploma or equivalent	$57,860
Securities, Commodities, and Financial Services Sales Agents	Securities, commodities, and financial services sales agents connect buyers and sellers in financial markets.	Bachelor's degree	$67,480
Real Estate Brokers and Sales Agents	Real estate brokers and sales agents help clients buy, sell, and rent properties.	High school diploma or equivalent	$52,030
Financial Managers	Financial managers create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.	Bachelor's degree	$139,790
Tellers	Tellers are responsible for accurately processing routine transactions at a bank.	High school diploma or equivalent	$36,380