Training Loan Officers

Quality loan officer training is one of the best investments one can make. For many people, taking out a loan is the only way they can afford a car, a house, their own business, or a college education. It is the loan officer who finds these individuals and helps them through the loan process. Loan officers are an important force in the lending industry, and they provide a valuable service to their community.

One should keep in mind that "training" is different from "education." In training, trainees are given skill sets that involve specific behaviors required to perform a job. Education, on the other hand, conveys knowledge and information that may or may not directly relate to the job. Therefore, when pursuing loan officer training, find courses that teach observable, measurable, and attainable skills essential to lending.

Many loan officer positions require bachelor's degrees in economics, finance, or a related area. Loan officers who do not have college degrees may advance to their current positions after several years of experience in other banking jobs, such as customer service representative or teller. In addition, people who demonstrate lending, banking, and/or sales experience are ideal loan officers. Loan officers should also exhibit adequate computer skills, written and interpersonal communication skills, the ability to establish and maintain professional relationships, and in many cases, bilingual proficiencies.

As far as licensing is concerned, loan officers should be familiar with the lending regulations depending on where they live. Loan officers working for mortgage brokerages and banks may be required by their state to obtain training and licensing. Loan officers employed by credit unions or banks do not have any specific requirements at this time.

Courses and Resources for Training Loan Officers

Many schools and banking associations offer training for people interested in becoming loan officers. Beginners should make sure their certification training fulfills state and federal requirements. These and other such courses are not only open to new students, but also to experienced loan officers wishing to improve their skills.

Certain skills are included in loan officer training. These skills include writing letters and related correspondence, making house and phone calls, and establishing interpersonal relationships. Industry-specific skills include explaining loan-related terms to customers, reading and calculating tax returns, taking a loan application, researching a potential borrower, and processing a loan.

A quality loan officer training program should train the individual in information-gathering and decision-making. Part of the job of the loan officer is to obtain information from clients and businesses to determine whether they are worthy of credit. The job also requires the loan officer to use information to find the best loans for each individual customer or firm.

Preparation for a loan officer position should also include sales training. A good salesperson knows how to seek people and companies in need of loans. If an individual or company is seeking a loan, the loan officer should have the sales skills necessary to persuade someone to pursue a loan from his or her financial institution.