What Is A Loan Officer?

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What Is A Loan Officer?

You’ve seen one somewhere, for sure. A loan officer who turns coffee into contracts – as the coffee mug says. Yup, a loan officer goes by many names – a loan officer who does not know what the word ‘lazy’ means, a straight shooter guy brimming with confidence, an over-the-top rule miracle worker. You’ve probably heard how they work hard, how they make things happen, and how formidable they are. 

But do you know exactly what a loan officer is and what he or she actually does? By definition, a loan officer is someone who represents a financial institution such as banks (or credit unions), and who assists loan applicants during the application process.  The Loan officers are more often tagged as mortgage loan officers as that is the most complex and costly type of loan most consumers encounter.

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Table of Contents

To put things simply, a loan officer links up and meets with borrowers or loan applicants who desire to loan money. The loan officers evaluate, approve and/or reject loan requests or applications. They reply to queries and assist the applicants through the procedure of the loan application. Sometimes, they promote the services and products of their firms and connect with people or companies to seek new business pursuits. 

The loan officer’s job description is not only limited to loans or bank loans. There are mortgage loan officers, loan benefactors, and collection analysts.  It also encompasses other fields, especially in real estate. A loan officer also evaluates, authorizes, or recommends approval of commercial, real estate, or credit loans. So their job also includes advising the applicants on their payment methods, financial standings. 

What are the tasks of these loan officers? 

Their primary task, as mentioned earlier is to meet with the borrowers, get their information for their applications, and help answer the queries of the applicants. The second and most important task of a loan officer is to “approve” loans within a designated boundary and in case these loans go outside those limits, they refer these to the management for approval. Hence, the nickname, miracle worker.

Other tasks and job duties of loan officers are — explaining to the customers the varied kinds of loans as well as choices for credit including their terms of services. They get and put together the borrowers’ credit histories, their financial statements, and other pertinent financial information. Their duty does not stop there, once the loan is approved, the loan officer reviews and updates the credit files and the loan portfolio. So, it isn’t exactly as simple as closing a loan — it goes beyond that. 

Loan Analyst.
They review the agreements and make sure that everything is thoroughly answered, accurate, and in line with the policies of the financial institutions. They also calculate schedules for payment, analyze possible loan markets and expand their networks in locating loan probabilities. 

Aside from taking care of the customers’ needs, they also make sure that they stay updated and knowledgeable about new kinds of loans, financial, services, and products out there. Therefore loan officers can’t just rest on their laurels, they need to keep learning and upgrading their knowledge in their field. 

Customer Service Agent.
A loan officer also works like customer service agents after they submit the applications to analysts for confirmation and guidance, they also tackle grievances and complaints from the customers and find ways to resolve these issues. 

Counselor slash Legal Adviser slash Property Custodian.
A loan officer also works as a counselor – as he or she closely works with the clients, helps them identify their financial goals, and finds ways and strategies to achieve these goals. More often, they also act as a go-between the clients and loan underwriters to assist in resolving issues concerning mortgage applications. 

They petition the courts to facilitate the transfer of deeds and titles to the banks. They also negotiate arrangements of payments with delinquent customers. They lay down policies on credit lines, procedures, and standards in relation to the other managers. They arrange and put together reports to send to delinquent clients and forward some accounts that need action from the collection department. 

They prepare the maintenance of delinquent properties as well as its liquidation process. A loan officer also provides investment banking for customers with more specific and specialized necessities.

Marketing Officer.
As previously mentioned, loan officers promote the products and services of their financial institutions to companies and individual customers, with the goal of meeting the needs of these companies and people. 

Human Resources Manager.
Okay, they don’t just deal with numbers and legal issues, they also supervise other personnel in the loan department. So people skills come into play here. They also interview new applicants for loan officers, they hire these candidates and then train them. 

So given all that, we can conclude that a loan officer must possess certain special skills cut out for the job. Just like any other professional, a loan officer must possess some hard skills that are teachable and measurable, like financial skills and knowledge with financial software.

But more than anything – since it’s a daunting job, a loan officer must also possess soft skills – like time management, customer service and people skills, quality focus and quick decision-making. 

Finally, they must have the professionalism and must possess honesty and integrity on top of all that.

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