Today’s loan officer, or loan originator as they are often called, provides an important service in many financial institutions each and every day. What exactly is it that these professionals do? Read on as we cover the basics of this money-related, deal-making profession.
What is a Loan Officer?
In the world of big purchases lies the world of finance and loans. Here, banks, also called lenders in most cases, provide consumers with the funds they need and otherwise don’t have on hand in order to make certain big purchases. Homes, cars, business expenses, personal needs, medical necessities, and more – these are all examples of such purchases in which lenders will often step in and provide a loan in order to cover the otherwise out-of-reach price tag.
Here enters the loan officer. This professional essentially acts as the lender’s representative in facilitating the loan process with the consumer. If you’ve ever sat at a desk, signed on the line, and received a loan for some purpose, chances are that you were dealing directly with a loan officer at that moment.
So, what else do these professionals do on a regular basis? The primary purpose of this position is typically to provide loan service and related services to customers. This means consulting with customers in-person, over, the phone, and via many other types of communique. All of this activity will be related directly with finances, funding, loans, customer needs, and so on.
In some institutions, the loan originator also performs a number of varying administrative and financial tasks behind the scenes when not directly dealing with loan customers. Here, the officer may work with financial analyses, record management, company correspondence facilitation, and more. These are, however, secondary functions to the vocation’s primary purpose which is to connect lending resources with the consumers looking for them.
Job Outlook
For those considering working within this kind of career, rest assured that there will be plenty of work in the coming year. According to the Bureau of Labor Statistics, loan officers will be demanded at a comfortable, average job growth rate of 8%. The median pay for a loan officer is approximately $63,650 per year.
How to Become A Loan Officer
In order to become a loan officer, one must typically yield a bachelor’s degree in a highly relevant area of major. Business majors, along with finance majors, are usually the most effective, and subsequently the most desirable at the hiring stage. Additional certifications are also sometimes required. For example, home mortgage-dealing loan originators must first become licensed to handle these particular types of loans. In the end, the additional accolades needed beyond college vary depending on what type of financial loan servicing the officer plans to do.
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Loans truly do make the world go around. It is therefore the job of today’s institutional loan officers to act as the face of the lending bank and facilitate the deal. Other duties may arise in this position, but primarily, sealing the lending deal is what it’s all about. These are the basics of the loan officer today.
