A mortgage loan officer helps people buy property by determining appropriate loans and assessing creditworthiness. They work for financial institutions and may handle other types of loans. A bachelor’s degree in finance or business is common, and pay is based on fees. They work closely with real estate agents and must have excellent people skills and financial assessment abilities.
A mortgage loan officer is an employee of a financial institution who specializes in mortgage management. She works with people looking to buy property to determine what types of loans are appropriate and how many people can afford to borrow. The loan officer also acts as an intermediary between borrowers and the financial institution, often establishing a long-term relationship with the customer.
Banks, lenders, credit unions and mortgage brokers all have mortgage loan agents on their staff. In some cases, a loan officer handles other types of loans in addition to mortgages, such as auto loans and small business loans. This is particularly common in small banks, where it would not be possible to maintain separate staff for different types of loans.
As a general rule, a mortgage loan officer has a bachelor’s degree in finance, business, or a related field. He can be trained by the financial institution or by a vocational school that offers training to people working in the financial sector. Pay is often based on fees, so the more loans a mortgage officer secures, the more take-home pay.
When people initially approach a financial institution for a loan, they are assigned a mortgage loan officer who reviews their case. During an interview, the mortgage loan officer will learn about the life of the applicants and collect financial data that will be used to determine creditworthiness. Many financial institutions rely heavily on credit scoring systems to determine who to lend money to, but even mortgage loan officers will consider special circumstances when evaluating applicants.
A qualified mortgage loan officer will work with clients to reach a loan agreement that will work. If customers are not eligible for the type of mortgage they are applying for, the loan officer may offer alternatives or suggestions, or indicate that customers should seek a smaller mortgage on a more affordable property. The loan officer must be able to balance the desire to sell a mortgage with concerns about the likelihood of repayment, as many banks learned to their disappointment in the US subprime lending crisis of 2008, when thousands of people they failed with mortgages they could not afford.
Mortgage loan officers usually work closely with real estate agents, and some real estate professionals have a preferred mortgage or bank officer, with an existing relationship that helps transactions run more smoothly. Working in this field usually requires excellent people skills along with the ability to assess financial situations quickly and accurately. Income can also fluctuate dramatically, especially when interest rates are high and the economy is at a low point, when fewer people are interested in buying homes, so the services of a mortgage loan officer aren’t needed.
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