Loan officers held about 316,200 jobs in 2018. The largest employers of loan officers were as follows:
| Credit intermediation and related activities | 81% |
| Management of companies and enterprises | 5 |
| Automobile dealers | 4 |
The depository credit intermediation industry includes commercial banks and savings institutions, and nondepository credit intermediation includes mortgage companies.
Loan officers who specialize in consumer loans usually work in offices. Mortgage and commercial loan officers often work outside the office and meet with clients at their homes or businesses.
Work Schedules
Most loan officers work full time and some work extensive hours.
Most loan officers need a bachelor’s degree and receive on-the-job training. Mortgage loan officers must be licensed.
Education
Loan officers typically need a bachelor’s degree, usually in a field such as business or finance. Because commercial loan officers analyze the finances of businesses applying for credit, they need to understand general business accounting, including how to read financial statements.
Some jobseekers may be able to enter the occupation without a bachelor’s degree if they have related work experience, such as experience in sales, customer service, or banking.
Training
Once hired, loan officers usually receive some on-the-job training. This may be a combination of formal, company-sponsored training and informal training during the first few months on the job.
Licenses, Certifications, and Registrations
Mortgage loan officers must have a Mortgage Loan Originator (MLO) license. To become licensed, they must complete at least 20 hours of coursework, pass an exam, and submit to background and credit checks. Licenses must be renewed annually, and individual states may have additional requirements.
Several banking associations, including the American Bankers Association and the Mortgage Bankers Association, as well as a number of schools, offer courses, training programs, or certifications for loan officers. Although not required, certification shows dedication and expertise and thus may enhance a candidate’s employment opportunities.
Loan officers typically have an interest in the Helping, Persuading and Organizing interest areas, according to the Holland Code framework. The Helping interest area indicates a focus on assisting, serving, counseling, or teaching other people. The Persuading interest area indicates a focus on influencing, motivating, and selling to other people. The Organizing interest area indicates a focus on working with information and processes to keep things arranged in orderly systems.
If you are not sure whether you have a Helping or Persuading or Organizing interest which might fit with a career as a loan officer, you can take a career test to measure your interests.
Loan officers should also possess the following specific qualities:
Decision-making skills. Decision-making skills are important for loan officers, who must assess an applicant’s financial information and decide whether to award a loan.
Initiative. Loan officers need to have initiative when seeking out clients. They often act as salespeople, promoting their lending institution and contacting firms to determine their loan needs.
Interpersonal skills. Because loan officers work with people, they must be able to guide customers through the application process and answer their questions.
The median annual wage for loan officers was $63,270 in May 2019. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $32,560, and the highest 10 percent earned more than $132,680.
In May 2019, the median annual wages for loan officers in the top industries in which they worked were as follows:
| Automobile dealers | $82,380 |
| Management of companies and enterprises | 65,910 |
| Credit intermediation and related activities | 62,210 |
The form of compensation varies widely by employer. Some loan officers are paid a flat salary; others are paid on commission. Those on commission usually are paid a base salary plus a commission for the loans they originate. Loan officers also may receive extra commission or bonuses based on the number of loans they originate or how well the loans perform.
Most loan officers work full time and some work extensive hours.
Employment of loan officers is projected to grow 8 percent from 2018 to 2028, faster than the average for all occupations. Although the demand for loan officers will increase as the overall economy grows, the decline of bank branches and the increasing application of technology in loan processing may moderate employment growth.
Economic growth will lead to more demand for loan officers, as both businesses and individuals seek credit to finance commercial investment and personal expenditure. Loan officers will be needed to evaluate the creditworthiness of applicants, and determine the likelihood that loans will be paid back in full and on time.
As bank customers increasingly use mobile and online banking services, the need for bank branches will decline. Banks have decreased the number of branches in operation in recent years, a trend that is expected to continue. Because the banking industry is the leading employer of loan officers, this trend will depress employment growth for these workers.
The increased use of technology in loan processing may moderate employment growth of loan officers over the decade. Loan officers are increasingly using computer software that can more efficiently process data and loan information, requiring reduced interactions with customers. This allows employment of fewer officers to process loan applications.
Job Prospects
Job opportunities should be good for people with lending, banking, or sales experience. In addition, some firms require loan officers to find their own clients, so candidates with established contacts and a referral network should have the best job opportunities.
For more information about certification and training for loan officers, visit
For more information about a career as a mortgage loan officer, visit
For more information about licensing for mortgage loan officers, visit
Nationwide Mortgage Licensing System & Registry Resource Center
State bankers associations have specific information about job opportunities in their state. Also, individual banks can supply information about job openings and the activities, responsibilities, and preferred qualifications of their loan officers.