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Career profile Loan Officer

Also known as Commercial Banker, Commercial Loan Officer, Corporate Banking Officer, Financial Aid Advisor, Financial Aid Counselor, Financial Aid Officer, Financial Counselor, Loan Counselor, Loan Officer, Mortgage Loan Officer

Loan Officer

Also known as Commercial Banker, Commercial Loan Officer, Corporate Banking Officer

Interests Profile
  • Conventional
  • Enterprising
  • Social
Pay Range
$33,650 - $133,850 (annual)
Required Skills
  • Active Listening
  • Speaking
  • Reading Comprehension
Knowledge Areas
  • Customer and Personal Service
  • Economics and Accounting
  • Mathematics
Core tasks
  • Review billing for accuracy.
  • Review accounts to determine write-offs for collection agencies.
  • Match individuals' needs and eligibility with available financial aid programs to provide informed recommendations.
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What does a Loan Officer do?

Loan Officers evaluate, authorize, or recommend approval of commercial, real estate, or credit loans.

In addition, Loan Officers

  • 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.

What kind of tasks does a Loan Officer perform regularly?

Loan Officers are often responsible for overseeing or executing some or all of the following tasks:

  • 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.
  • Approve loans within specified limits, and refer loan applications outside those limits to management for approval.
  • Explain to customers the different types of loans and credit options that are available, as well as the terms of those services.
  • Submit applications to credit analysts for verification and recommendation.
  • Review loan agreements to ensure that they are complete and accurate according to policy.
  • Review and update credit and loan files.
  • Obtain and compile copies of loan applicants' credit histories, corporate financial statements, and other financial information.
  • Handle customer complaints and take appropriate action to resolve them.
  • Work with clients to identify their financial goals and to find ways of reaching those goals.
  • Stay abreast of new types of loans and other financial services and products to better meet customers' needs.
  • Market bank products to individuals and firms, promoting bank services that may meet customers' needs.
  • Analyze potential loan markets and develop referral networks to locate prospects for loans.
  • Compute payment schedules.

The above responsibilities are specific to Loan Officers. More generally, Loan Officers are involved in several broader types of activities:

Getting Information
Observing, receiving, and otherwise obtaining information from all relevant sources.
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.
Establishing and Maintaining Interpersonal Relationships
Developing constructive and cooperative working relationships with others, and maintaining them over time.
Processing Information
Compiling, coding, categorizing, calculating, tabulating, auditing, or verifying information or data.
Analyzing Data or Information
Identifying the underlying principles, reasons, or facts of information by breaking down information or data into separate parts.

What is a Loan Officer salary?

The median salary for a Loan Officer is $63,960, and the average salary is $76,930. Both the median and average roughly describe the middle of the Loan Officer salary range, but the average is more easily affected by extremely high or low salaries.

Many Loan Officers earn significantly more or less than the average, due to several factors. About 10% of Loan Officers earn less than $33,650 per year, 25% earn less than $45,540, 75% earn less than $93,490, and 90% earn less than $133,850.

Between the years of 2020 and 2030, the number of Loan Officers is expected to change by 1.3%, and there should be roughly 25,000 open positions for Loan Officers every year.

Median annual salary
$63,960
Typical salary range
$33,650 - $133,850
Projected growth (2020 - 2030)
1.3%

What personality traits are common among Loan Officers?

Interests

Career interests describe a person's preferences for different types of working environments and activities. When a person's interest match the demands of an occupation, people are usually more engaged and satisfied in that role.

Compared to most occupations, those who work as a Loan Officer are usually higher in their Conventional, Enterprising, and Social interests.

Loan Officers typically have very strong Conventional interests. Conventional occupations frequently involve following set procedures and routines. These occupations can include working with data and details more than with ideas. Usually there is a clear line of authority to follow.

Also, Loan Officers typically have very strong Enterprising interests. Enterprising occupations frequently involve starting up and carrying out projects. These occupations can involve leading people and making many decisions. Sometimes they require risk taking and often deal with business.

Lastly, Loan Officers typically have moderate Social interests. Social occupations frequently involve working with, communicating with, and teaching people. These occupations often involve helping or providing service to others.

Values

People differ in their values, or what is most important to them for building job satisfaction and fulfillment.

Compared to most people, those working as a Loan Officer tend to value Relationships, Independence, and Support.

Most importantly, Loan Officers very strongly value 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.

Second, Loan Officers strongly value Independence. Occupations that satisfy this work value allow employees to work on their own and make decisions.

Lastly, Loan Officers strongly value Support. Occupations that satisfy this work value offer supportive management that stands behind employees.

Psychological Demands

Each occupation brings its own set of psychological demands, which describe the characteristics necessary to perform the job well.

In order to perform their job successfully, people who work as Loan Officers must consistently demonstrate qualities such as integrity, dependability, and cooperation.

Below, you'll find a list of qualities typically required of Loan Officers, ranked by importance:

Integrity
Job requires being honest and ethical.
Dependability
Job requires being reliable, responsible, and dependable, and fulfilling obligations.
Cooperation
Job requires being pleasant with others on the job and displaying a good-natured, cooperative attitude.
Attention to Detail
Job requires being careful about detail and thorough in completing work tasks.
Adaptability/Flexibility
Job requires being open to change (positive or negative) and to considerable variety in the workplace.

What education and training do Loan Officers need?

Many Loan Officers will have a four-year bachelor's degree, but some do not.

Loan Officers usually need several years of work-related experience, on-the-job training, and/or vocational training.

Educational degrees among Loan Officers

  • 0.9% did not complete high school or secondary school
  • 13.1% completed high school or secondary school
  • 21.7% completed some college coursework
  • 10.4% earned a Associate's degree
  • 42.3% earned a Bachelor's degree
  • 10.5% earned a Master's degree
  • 1.0% earned a doctorate or professional degree

Knowledge and expertise required by Loan Officers

Loan Officers may benefit from understanding of specialized subject areas, such as customer and personal service, economics and accounting, or mathematics knowledge.

The list below shows several areas in which most Loan Officers might want to build proficiency, ranked by importance.

Customer and Personal Service
Knowledge of principles and processes for providing customer and personal services. This includes customer needs assessment, meeting quality standards for services, and evaluation of customer satisfaction.
Economics and Accounting
Knowledge of economic and accounting principles and practices, the financial markets, banking, and the analysis and reporting of financial data.
Mathematics
Knowledge of arithmetic, algebra, geometry, calculus, statistics, and their applications.
Sales and Marketing
Knowledge of principles and methods for showing, promoting, and selling products or services. This includes marketing strategy and tactics, product demonstration, sales techniques, and sales control systems.
Law and Government
Knowledge of laws, legal codes, court procedures, precedents, government regulations, executive orders, agency rules, and the democratic political process.

Important Abilities needed by Loan Officers

Loan Officers must develop a particular set of abilities to perform their job well. Abilities are individual capacities that influence a person's information processing, sensory perception, motor coordination, and physical strength or endurance. Individuals may naturally have certain abilities without explicit training, but most abilities can be sharpened somewhat through practice.

For example, Loan Officers need abilities such as oral comprehension, written comprehension, and oral expression in order to perform their job at a high level. The list below shows several important abilities for Loan Officers, ranked by their relative importance.

Oral Comprehension
The ability to listen to and understand information and ideas presented through spoken words and sentences.
Written Comprehension
The ability to read and understand information and ideas presented in writing.
Oral Expression
The ability to communicate information and ideas in speaking so others will understand.
Near Vision
The ability to see details at close range (within a few feet of the observer).
Written Expression
The ability to communicate information and ideas in writing so others will understand.

Critical Skills needed by Loan Officers

Skills are developed capacities that enable people to function effectively in real-world settings. Unlike abilities, skills are typically easier to build through practice and experience. Skills influence effectiveness in areas such as learning, working with others, design, troubleshooting, and more.

Loan Officers frequently use skills like active listening, speaking, and reading comprehension to perform their job effectively. The list below shows several critical skills for Loan Officers, ranked by their relative importance.

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.
Speaking
Talking to others to convey information effectively.
Reading Comprehension
Understanding written sentences and paragraphs in work-related documents.
Judgment and Decision Making
Considering the relative costs and benefits of potential actions to choose the most appropriate one.
Critical Thinking
Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.

What is the source of this information?

The information provided on this page is adapted from data and descriptions published by the U.S. Department of Labor, Employment and Training Administration under the CC BY 4.0 license. TraitLab has modified some information for ease of use and reading, and the U.S. Department of Labor, Employment, and Training Administration has not approved, endorsed, or tested these modifications.

If you have any questions or suggestions about this information, please send a message.