What does a Loan Officer do?
A Loan Officer manages the loan pipeline and process to ensure customers receive loans in a timely manner. They also explore loan opportunities, handle loan applications and prepare credit reports. Other than selling or originating mortgages, the Loan Officer advises customers on their financial status and repayment methods.
The Loan Officer develops and maintains client relationships as they pursue new customer opportunities. They do so by calling customers and monitoring their efforts. From time to time, they liaise with the borrower, lenders, credit agencies and external parties. When borrowers delay with repayments or default, they advise debt collection agencies on irreconcilable accounts for further action.
Loan Officer skills and qualifications
Loan Officers are integral to the success of any financial or lending institution. To perform their job effectively a successful Loan Officer candidate will have various prerequisite skills and qualifications that typically include:
- Working knowledge of loan operations with banks or lenders with agency exposure
- Ability to use various IT tools such as financial and administrative, word processing, spreadsheet and database software
- Excellent interpersonal and communication skills, both verbal and written
- Impeccable customer service and customer handling skills
- Working knowledge of credit unions and how they deliver financial services
- Firm grasp of financial, documentation and administration procedures
- Ability to analyse loan applications and supporting documents for issuance of loans
- Strong numerical skills to handle loan calculations and repayments for the customers
Loan Officer experience requirements
A Loan Officer needs to have least three years of experience working in various financial institutions. Experience in banking or financial services is desirable. Applicants need to have experience making loan decisions through various means including credit history review, credit scoring and affordability analysis.
Loan Officer education and training requirements
Entry-level Loan Officer positions require a Level 3 Diploma in personal and business finance. For a senior role, a degree in business, finance and accounting is necessary. On-the-job training is essential for new hires. Some employers provide a combination of company sponsored training and other informal training. For senior roles, it’s best to hire a Loan Officer with CeMAP Level 3 qualification and understanding of FCA and MCOB regulation.
Loan Officer salary expectations
According to Indeed Salaries, the average salary of a Loan Officer in the UK, is £24,747 per year. This figure varies depending on job experience, location and company size.
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