Find out the types of training programs available for aspiring loan processors, including those that can lead to a certificate or a degree in financial services, mortgage banking or real estate. Read on for more information about formal education options, potential employers and salary.
Overview of Loan Officer Training Programs and Requirements
Loan processors, also known as loan officers, assess the credit worthiness of applicants and authorize the release of funds. They may also provide information to businesses and individuals about loan types and terms. A high school diploma is typically the minimum educational requirement for obtaining this position. On-campus certificate and degree programs in loan processing and mortgage banking can also be found at some community colleges.
If you're interested in commercial lending, you'll most likely need a bachelor's degree in business, economics or finance. To work as a mortgage loan officer, you'll also need a state-mandated, mortgage loan originator license (MLO), and requirements include a minimum of 20 hours of relevant coursework, a background check and a passing score on an exam.
<table border="1"><tr><td><b>Degree and Certificate Fields</b></td><td>Business, economics, finance</td></tr>
<tr><td><b>Certificate Courses</b></td><td>Accounting, loan origination, ethics, mortgage lending</td></tr>
<tr><td><b>Degree Courses</b></td><td>Investing, insurance, communication, decision making</td></tr>
<tr><td><b>Job Outlook</b></td><td>3% growth for 2019-2029 for loan officers</td></tr>
</table><p><i>Source: U.S. Bureau of Labor Statistics</i>
</p><h3 id="section---CertificatePrograms">Certificate Programs</h3><p>In general, certificate programs in financial services or loan processing require 9-23 credits to complete and can help you prepare for a career in banking, mortgage financing, retail credit or real estate. Learning outcomes include the ability to analyze and verify applications, follow residential loan guidelines and underwrite documents. Depending on the course of study, you may take courses in ethics, finance, loan origination and mortgage lending. Some programs also require students to participate in a cooperative education experience. In addition to your local college, you may also find courses and certification programs in loan processing through the American Bankers Association or the Mortgage Bankers Association.
</p><h3 id="section---DegreePrograms">Degree Programs</h3><p>Two-year degree programs that include training in loan processing can lead to an Associate of Science in Finance and Credit, Mortgage Banking or Real Estate. Along with instruction in loan underwriting and servicing, the programs may include topics in accounting, business, communication and decision making. Finance programs in particular may provide training in cash management, investing and insurance. Additional program features might include a cooperative education experience or the chance to take electives in collection procedures or credit law.
</p><h3 id="section---JobOutlookAndSalary">Job Outlook and Salary</h3><p>Loan officers can specialize in commercial, consumer or mortgage lending, or be employed as collection officers or loan underwriters. According to the U.S. Bureau of Labor Statistics (BLS), opportunities for loan officers are expected to increase by 3% from 2019 to 2029, which is about as fast as average when compared to all other occupations (<i>www.bls.gov</i>). In addition to interest rates and the state of the economy, the use of loan underwriting software will most likely effect job growth. College graduates, especially those with relevant work experience, should enjoy the best prospects.
</p><p>In May 2020, loan officers nationwide earned median annual wages of $63,960 as reported by the BLS. Compensation packages vary according to the company and include commission-based or salary-based payments .</p>
