Loan officers advise, authorize and recommend loan approval for individuals and businesses.

Duties might include talking with loan applicants about loan terms and helping them find a product that may be a good fit, as well as verifying information such as an applicant’s income and credit score and making sure that loan agreements comply with state and federal regulations.

“They’re…charged with understanding laws and regulations and being knowledgeable about (the bank’s) products and services, which ensures that they’re doing what’s best for their customers,” Peter Boomer, Chicago-based head of mortgage distribution for PNC Bank, wrote in an email.

There are a few different types of loan officers. Commercial loan officers focus on business loans, while consumer loan officers specialize in loans to individuals, such as personal loans or auto loans. Mortgage loan officers focus on loans for real estate transactions. Some loan officers are further specialized. For example, loan underwriters collect and evaluate the information on loan applications to determine an applicant’s creditworthiness, while loan collection officers are tasked with contacting borrowers who miss loan payments and helping them find a way to continue making payments.
The Bureau of Labor Statistics projects 2.9% employment growth for loan officers between 2022 and 2032. In that period, an estimated 10,400 jobs should open up.

Loan officers typically have a bachelor’s degree in a related field like finance or business. However, some candidates who don’t have a bachelor’s degree might be able to get a job with relevant experience, such as a history of working at a bank.

Mortgage loan officers must also earn a mortgage loan originator license, which involves taking required courses and passing a background check and credit check. Each U.S. state and territory has specific licensing requirements, so make sure you understand what’s required in the state where you’re applying to work. Regardless of what state you work in, you also must pass a national exam, the SAFE MLO test, to become a mortgage loan originator. This test is a result of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, which established licensing and registration requirements for mortgage loan originators. MLO licenses must be renewed, which mandates meeting annual continuing education requirements. Some states also have specific education requirements.

Loan officers may be required to complete additional training and coursework on the job, using resources provided by their employer.

“At PNC, our loan officers attend our loan officers’ essentials training,” Boomer says. “In addition to this initial training, mortgage loan officers are provided online courses and training throughout the year that helps them understand changing regulations, products and marketing.”

Employers may also provide further training for loan officers who want to become experts in an area. For instance, Boomer says PNC offers its mortgage loan officers certification opportunities in topics like affordable lending and new construction loans.