| Educational Attainment Breakdown for Loan Officers |
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College or Higher |
50.5% |
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Some College |
32.0% |
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High School or Less |
17.6% |
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Most Significant Source of Postsecondary Education or Training
Bachelor's degree
Source: U.S. Department of Labor
Loan officers usually need a bachelor's degree in finance, economics, or a related field. Previous banking, lending, or sales experience is also highly valued by employers.
Education and training. Loan officer positions generally require a bachelor's degree in finance, economics, or a related field. Loan officers without a college degree often advance to their positions after gaining several years of work experience in various other related occupations, such as teller or customer service representative.
Licensure. There are currently no specific licensing requirements for loan officers working in banks or credit unions. Training and licensing requirements for loan officers who work in mortgage banks or brokerages vary by State and may include continuing education requirements. As the types of mortgages offered to prospective homebuyers increases, licensing requirements may become more stringent as regulators and lawmakers become more leery of possible predatory lending.
Other qualifications. People planning a career as a loan officer should be good at working with others, confident in their abilities, and highly motivated. Loan officers must be willing to attend community events as representatives of their employer. Sales ability, good interpersonal and communication skills, and a strong desire to succeed also are important qualities for loan officers. Most employers also prefer applicants who are familiar with computers and their applications in banking.
Certification and advancement. Capable loan officers may advance to larger branches of their firms or to managerial positions. Some loan officers advance to supervise other loan officers and clerical staff.
Various banking associations and private schools offer courses and programs for students interested in lending and for experienced loan officers who want to keep their skills current. For example, the Bank Administration Institute, an affiliate of the American Banker's Association, offers the Loan Review Certificate Program for people who review and approve loans. This program enhances the quality of reviews and improves the early detection of deteriorating loans, thereby contributing to the safety and soundness of the loan portfolio.
The Mortgage Bankers Association offers the Certified Mortgage Banker (CMB) designation to loan officers in real estate finance. The association offers three CMB designations: residential, commerce, and masters to candidates who have 3 years of experience, earn educational credits, and pass an exam. Completion of these courses and programs generally enhances employment and advancement opportunities.
Source: U.S. Department of Labor's Occupational Outlook Handbook
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