Loan Officer: One of the Top 20 Business Jobs
Ranked as the #15 best business jobs is a Loan Officer by U.S. News and World Report.
What does a Loan Officer Do?
Does officer mean they act as security for loans? No. Loan officers, legally known as loan originators since 2008, advise, analyze and solicit loans to eligible borrowers and businesses.
Financing a home or vehicle is the most common task. Loan officers are often involved in helping a person finance big purchases in their lives.
Educational Requirements
The minimum level of education is high school graduation along with passing the licensing requirements from the NMLS. However, the loan originators who have obtained a four-year college degree, in business or finance may receive better compensation, benefits, and more responsible roles.
Loan originators may also need to have knowledge and expertise in analyzing the financial statements of a business seeking to acquire an investment property or refinance its debt.
Training Required
After coming on board with a mortgage company, loan officers have options to advance or specialize in certain types of loans such as reverse mortgages, commercial, or government backed loans. This may be accomplished through continuing education for NMLS renewal or a special course.
How Much Does a Loan Originator Earn Annually?
Loan Originators make a median salary of $63,040 in 2018. The top 25 percent earned an average of $92,240 in 2018, while the lower 25 percent made $44,500
The median salary is $71,000 while the average Loan Originator makes from $35,000 to $165,000 per year. Additional variables like the specialty and size of the company play a factor in determining an LO’s pay as mentioned by Career Builder.
What do Loan Officers do day to day?
You’ll commonly find Loan officers engaging in the following tasks:
• Marketing people to see if they may need a loan in the near future
• Meet or call the person to collect personal information and answer any questions
• Explain the various kinds of loans and the terms of each type to potential borrowers
• Review and analyze the person’s account statements, credit report, job, and income
• Structure the loan so it’s submitted properly in order for it to be approved by the underwriter.
• If the loan officer uses an automated underwriting system to approve the loan application, the loan officer will review the loan conditions with the applicant if they receive an approve accept, approve eligible, etc.
• If the loan originator is required to submit the application for manual approval by a human underwriter, they will similarly review the stipulations if its given a conditional approval.