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Education

What Degree Do You Need To Be A Loan Officer

By David Krug 3 minute read

Mortgage Loan Originators (MLOs) and Mortgage Loan Officers (MLOs) are the first two groups. Are there any differences? No. According to the LoanOfficerLicense website, the position is known as an MLO, even though the job duties are the same.

Customer loans for vehicles, college tuition, and houses are handled by these officials. For consumers, they assist assess what kind of loan they should get, as well as explaining the different conditions which they must meet to get it.

There are a variety of loan specialists that work in commercial banks, mortgage businesses, and credit unions. There are loan officers that go to meet with customers at their companies or residences.

The mortgage loan officer performs a wide range of duties, including but not limited to:

  • Sales and marketing. Marketing and creating connections with commercial and residential real estate companies are two ways mortgage loan officers seek clients. Prospective homebuyers are then sent to a mortgage lending officer.
  • Financial analysis. In order to determine an applicant’s creditworthiness, a thorough examination of financial data and risk is necessary. Loan officers can assist in the analysis and reorganization of payments for borrowers who are in danger of default.
  • Communication. Buyers need to be aware of the conditions of the loan and their responsibilities before signing on the dotted line. When a buyer applies for a loan, the loan officer goes over the terms, obligations, and approval procedure with them. Lending conditions affect monthly interest and principal payments, and these payments might change over time. Buyers should know this.
  • Administration. In order to pay the costs of a single transaction, loan officers may manage many loans.

Certification and Education

In order to work as a commercial loan officer in the financial sector, you will need a bachelor’s degree in economics, finance, or a business-related discipline.

One of these majors can help commercial loan officers better analyze a company’s finances, evaluate financial documents, and grasp the fundamentals of accounting.

Accounting, mathematics, finance, economics, and business statistics are some of the common subjects included in these programs.

According to reports, many companies demand that MLOs have previous experience before hiring them. In a field where experience is required, how can you get a job if you have no previous experience?

Get a degree in business administration or finance, which is the most effective course of action in this situation. Entry into this area is more likely for those with a bachelor’s degree or above.

Even if a potential MLO has a financial degree, he or she will still require great interpersonal and communication skills. Students who lack proficiency in these areas should take additional classes and join speaking clubs.

Loan originators must be licensed or registered under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act), which was signed into law in 2008. (MLOs.)

The National Mortgage Licensing System and Registry (NMLR) serves as a clearinghouse for all state licensing requirements and examinations (NMLS).

Professional credentials are required, as they are for the majority of employment in the finance sector. There are three certifications offered by the American Bankers Association (ABA), Certified financial marketing professional (CFMP), Certified lender business banker (CLBB, and Certified trust and financial adviser) (CFTA).

As a member of the Mortgage Bankers Association (MBA), mortgage bankers can choose from a wide range of certification choices, including commercial and residential.

Minimum job experience, examination achievement, and continued education are all prerequisites for the ABA and MBA certificates.

Employment

There was an 8 percent increase in employment between 2013 and 2022, according to the Bureau of Labor Statistics (BLS). The median annual wage was $71,800 in May of 2013.

In the United States, there were 301,860 loan officers employed in 2013. According to the Bureau of Labor Statistics (BLS), there will be a shortage of 22,900 loan officers by the year 2022.

Bottom Line

The employment growth is mediocre, however for individuals who prefer interacting with people in a professional atmosphere, this may be a rewarding and financially rewarding career. In addition, this is a vocation that is in high demand across the United States’ geographic areas.

David Krug

Author