What is a Loan Officer? A Look into the Career

To answer the question “what is a mortgage loan officer?” and find out more about what they do, let’s take a look at the big picture.

As licensed representatives of mortgage companies or financial institutions, mortgage loan officers help consumers apply for loans they need to purchase a home. Banking regulators sometimes refer to them as mortgage loan originators because they’re the ones who initiate the mortgage lending process, helping first-time home buyers get the financing they need to make what is often the single largest purchase of their lifetimes.

Mortgage loan officers are different from mortgage brokers. A mortgage broker is a licensed professional who works with multiple lenders to find loan programs for customers and acts as an intermediary between the borrower and lender. A mortgage loan officer typically works for one lender, such as a bank, credit union or other financial institution, which means the loan products they can offer are limited only to what that particular lender offers.

The regular duties of a mortgage loan officer may include:

Now that we’ve looked at the career in broad strokes, what are some of the daily duties of a loan officer? Working in an office environment, loan officers will typically meet with clients, make calls to reach out to new clients and scheduling appointments to meet with them. When meeting with clients, loan officers will ask about the customers’ needs and begin collecting their financial information needed to complete their clients’ loan applications. Throughout this process, the loan officer is considering which loan might make the best fit with the borrower’s needs but is also assessing the financial institution’s risk involved with lending to them.

When everything has been decided, they will then: 

If you’re thinking about pursuing a career as a loan officer, there are some important things to know about the education, experience and skills the job requires.

A loan officer is essentially a finance job. According to the Bureau of Labor Statistics (BLS), loan officers typically need a bachelor’s degree in business or finance, along with some on-the-job training. An understanding of general business accounting helps them to read and understand financial statements.

Regarding the experience required for the job, the BLS notes that mortgage companies may prefer to hire candidates with some residential mortgage or real estate industry experience, and typically need to have a Mortgage Loan Originator’s license, or MLO. The licensing process consists of pre-licensing courses, a national exam and background and credit checks. Other requirements may be needed depending on the state you live in.

The BLS also details that these important soft skills may also come in handy for mortgage loan officers:

While the overall job growth for loan officers across all sectors is expected to hold steady at 4% on a national level between 2021 to 2031, the BLS projects this will result in roughly 29,400 job openings for loan officers each year during this period.¹ This growth is projected on a national level and local growth will vary by location. This projection is not specific to DeVry graduates and may include earners at all stages of their careers.

At DeVry, you can enroll in our Bachelor’s Degree with a Specialization in Finance, our MBA with a Specialization in Finance or our Master’s Degree in Accounting and Financial Management from our Keller Graduate School of Management to help you get started on the path toward a new and exciting career.

In these programs you’ll learn essentials about money and banking, what technology is being used in the industry, data analysis and so much more. Plus, online learning with DeVry helps you to balance your commitment to education with work, family and other aspects of your busy life.

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