Loan officers helps people improve their lives by cutting through the red tape, but they also need to learn how to separate emotions from economics. Here’s what you need to break into this lucrative industry and make it.
A Bachelor’s Degree
Most employers will require you to have at least a bachelor’s degree. But, most places don’t specify from where. In fact, you could find an online college in Florida and do the whole thing online. What employers care about is that you have an education in the basics.
Of course, some employers do not require any degree at all as long as you have some experience or at least a high school diploma. It helps if you’re good with numbers and math in general. If you’re looking for supplemental education, it pays to be educated in finance, economics, business, and other related fields.
Licensure and Certification
As a loan officer, you need to be licensed if you want to sell mortgages. Some certifications are voluntary but recommended. The license for a mortgage lender is called a mortgage loan originator (MLO). This process involves completing 20 hours of required coursework and passing an exam.
You also need to pass a background and credit check.
Finally, you need to complete ongoing education, called “continuing education” (CE). Each year, you must attain a minimum number of credits, typically 8 credit hours of CE. Some other requirements for CE vary by state.
In some cases, you may be required to pay an annual fee and adhere to the Institute of Certified Bankers’ Professional Code of Ethics.
CMB designations that are offered by the MBA have to be renewed every 2 years and earning 5 CE credits is required to maintain certification.
Experience
Experience helps, but it’s not always possible to get into the industry with it. Sometimes, you have to start as an intern and work your way up. Other times, you have to start as an entry-level loan officer or an assistant and work your way into an executive-level position.
As far as experience goes, many banks will want between 2 and 6 years of prior experience in financial services.
Skills
You will probably need computer skills, like knowledge of mortgage and banking software, to be successful in this industry. You will also need to know how to use amortization software, how to manage and assess risk, and how to assess a borrower’s creditworthiness.
You will also need strong interpersonal communication skills, decision-making skills, and an ability to take initiative on projects. You’ll need extensive knowledge of the banking and loan industry, as well as knowledge of the regulations governing the industry.
Most banks are strictly regulated and the loan market is one of the most heavily-regulated markets in the U.S., especially for mortgage loans. If you don’t have a firm grasp on all of these regulations, it may cost you more than your job. You might end up in jail.
Other skills vary by the position and company you choose to work for.
Elizabeth Beasley occupies a senior role within the financial services sector. She is pleased to share her thoughts with an online audience. Her informative insights can be found across a number of different websites.
