All about: Loan officer training

Loan officers help finance companies find potential clients with repaying capability, and then help these potential clients to apply for the loan that’s best suited for him. This article will talk on loan officer training.

Loan officer training and licensure

Roles of loan officers Loan officers specialise in many types of loans, personal, home, vehicle, re-mortgage, reverse mortgage, commercial, personal loans, etc. A loan officer has to understand finances to find customers with repayment capabilities and then, help them to choose the appropriate loan. Plus, he needs customer relations skills as he has to constantly interact with loan seekers and financial institutions. So, he needs specialised training. Sponsors and on-the-job training
People with a high school diploma can become loan officers and receive on-the-job training. Companies' sponsors provide loan officer training by conducting or sponsoring formal and informal training programs for new recruits and continuing education program for those already in employment. Duration of training
The training for new recruits lasts about four to five months. Freshmen typically start off as tellers or customer service representatives, and are later promoted to a higher role after obtaining training and experience.
Degree in finance or related areas Loan officers operating in the commercial loans sector must have a bachelor’s degree in finance or related areas. This is because commercial loan officers must understand a business finances and therefore, they must be up-to-date with accounting, cash flow analysis, and financial statement comprehension. Prior experience in banking, lending or sales is valued highly. Licensure Typically, loan officers do not need a license in UK. However, they must pass a competency exam, which is quite difficult. If the loan officer works at a mortgage company, then he must get a license as a mortgage broker and get adequate mortgage broker training. The FSA (Financial Services Authority) monitors all mortgage activity in the UK and administers the mortgage officer examination. Mortgage broker licensing involves coursework, a written exam, clearing a background check and not having any criminal/felony convictions. A loan officer's background is checked as well.

Continuing education and career advancement

Sociable people and communication skills Loan officers must grow to be be sociable people. They must always keep their motivation levels high. They are required to continuously interact with customers and colleagues and therefore, they must enhance their listening and presentation skills.
Qualities of the loan officer They must attend events and have networking and sales ability and great communication skills. A hunger to succeed coupled with a diligent attitude is always required. Loan officers must know how to work financial and underwriting software as well. Many banks and schools offer continuing courses that help loan officers to keep their current skills.