Loan officers need higher-level courses, licensure, and training with a financial institution. A degree in a banking-related field is helpful, as is experience in a financial institution. Continuing education is necessary to maintain a license.
Loan officer training usually consists of at least a few higher-level courses, licensure, and more training time with a specific financial institution. In some cases, it may be possible to become a loan officer without having a college degree, but college offers the best chance of finding a job. Also, while it might not be necessary, it might be a good idea to get some experience working in a financial institution, even if it’s not directly related to loan work. Additionally, the loan officer will likely need some form of continuing education training to maintain the license, where applicable.
After high school, the first step towards loan officer training involves earning a degree in a banking-related field, such as economics, finance, business or a related field. Those wanting additional loan officer training while pursuing a degree should try taking advantage of internships in the finance department of a bank or credit union. This could provide valuable experience and provide students with contacts that could help later in the job search process.
After graduation, the next step in loan officer training involves obtaining a license if the individual wishes to work in mortgages. To become licensed, a loan officer must take at least 20 hours of coursework and pass a written exam. The license may not be a requirement in all jurisdictions, but changes in US federal law now make it mandatory for those working in the US. Even for a person who successfully completes a loan officer training program by passing the written exam, a license cannot be granted if the individual has a criminal conviction.
Once a loan officer is licensed or finds employment, the next step in loan officer training is to become familiar with the way that employer operates. Certainly, some of the government reporting requirements will be the same no matter where the individual goes, but there are always some differences. Knowing who to report to and what they expect, for example, will differ from one employer to another. An in-house training period may last just a few weeks or it may take place over a period of months, depending on company policies.
After this in-house training, once the licensed individual is free to work as a loan officer, he or she must still undergo training to maintain the license. This continuing education component can vary by jurisdiction and it is up to the loan officer to familiarize himself with the rules and regulations in his area. Those who wish to work in multiple states or jurisdictions must meet requirements in all areas. It is also possible for the loan officer to receive certifications from industry groups for additional credibility.
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