What Are the Duties and Responsibilities of Loan Officers?

Banks, credit unions, and financial institutions employ loan officers to assist customers applying for loans. They also assess the creditworthiness of borrowers through underwriting. Regardless of their employer, loan officers specialize in three major types of lending; consumer, mortgage, and commercial lending.

Commercial lending extends credit to businesses, personal loans, home equity, education, and auto loans, while mortgages are real estate loans taken by individuals or real estate developers. If you just qualified as a loan officer and intend to apply for Lakeview Loan Jobs, you should understand the scope of your work. Below are the key duties of loan officers in various financial institutions.

Duties of Loan Officers

As a loan officer, you should have an in-depth understanding of the types of loans offered by your employer to provide customers with valuable insights. You should review the loan applicants' details and complete the necessary paperwork. You should have comprehensive customer service skills and knowledge about the lending industry. Note that you should be licensed by state and federal authorities to practice as a loan officer.

Roles of Loan Officers in the Screening Process

The loan officer is the main point of contact between the customer and the lending institution, so you should represent both parties to the best of your ability. You should review the applicant's financial details to determine if they qualify for a mortgage, business loan, personal loan, or any other type of loan.

For instance, if you are processing a mortgage loan for a client, you should verify everything involved in the mortgage application process. This includes getting in touch with all parties involved in mortgage loans, such as real estate agents, appraisers, settlement attorneys, and underwriters.

Loan officers are also tasked with evaluating the borrower's credit worthiness. If the borrower has missed payments, employment gaps, or a drop in credit score, you should meet with the borrower to fill these gaps. You should evaluate the applicants' creditworthiness by reviewing their credit score, annual salary, debt-to-income ratio, and other factors.

Role of Loan Officers in the Loan Application Process

A loan application is a lengthy and tedious process that involves a lot of paperwork. For instance, if a borrower is applying for a mortgage, the application should go through the following steps:

1.      Pre-approval

2.      Searching for the home

3.      Mortgage application

4.      Loan processing

5.      Underwriting

6.      Closing

Loan officers play crucial roles in every step of the loan application. For instance, after screening and approving the application for a mortgage, they should verify with applicants any questions or details required during the loan processing stage. Loan officers then submit the client's application to an underwriter, who determines the individual's credit worthiness. If the applicant is approved for credit, the loan officer collects the approval documents and prepares the closing documents.

Note that your responsibilities during loan application vary depending on the type of loan. For instance, secured loans involve a lot of documentation than unsecured personal or business loans. As such, you should understand the various types of loans and application processes involved.

Endnote

Working as a loan officer is a rewarding yet challenging occupation. This explains why most loan officers require extensive on-job training after graduating college and receiving certification. You should have a good understanding of business accounting and financial statements.