How to Become a Commercial Loan Officer

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Finding loans for businesses can be rewarding for the business and the commercial loan officer. This banking career involves selling knowledge, expertise, and loans to potential business clients. Most loan officers work for financial institutions within the banking industry. Learn how to become a commercial loan officer for a rewarding banking career.

Steps

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    • Unlike other banking careers, the commercial loan officer often works outside of the office, calling on potential businesses.
    • Loan officers help commercial clients through the loan application process.
    • In addition to gathering information, this process may include addressing potential lending problems.
    • Commercial loan officers who work for mortgage brokers may also process the loan.
    • A commercial loan officer is often paid on commission, usually 1/2 of 1 percent of the amount of the loan.
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    [1]
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    • Useful skills include doing financial statements, business accounting and cash flow analysis.
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    [2]
    • Federal licensing requires 20 hours of education in lending, passing an examination and successfully undergoing a background check. [3]
    • Individual states may have additional licensing requirements for loan officers.
    • Loan officers must meet continuing education requirements to continue licensure.
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    • For example, the Bank Administration Institute of the American Bankers Association offers a Loan Review Certificate program.
    • Private business schools are another resource.
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    [4]
    • Loan officers often have to attend social functions as a representative of the bank. This is a good way to make contacts with future clients.
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    • As loan officers often work in the field, they need to rely on laptops and cell phones to obtain current information and to maintain contact with their employer and potential clients.
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    • Commercial real estate agencies are also a good resource for the commercial loan officer.
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    • Be available to answer questions and help with the loan application.
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    [5]
    • Verify application information.
    • Check a borrower's credit history with underwriting software, but understand that most commercial loans require additional financial information.
    • Consult with bank managers to determine whether a loan should be granted.
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Community Q&A

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  • Question
    If I do not have a bachelor's degree, Is it still possible to become a commercial loan originator? I live in San Antonio TX and am looking for commercial classes that may be held to obtain my license.
    Community Answer
    Since having a degree isn't a specific requirement of obtaining any licensing that may be associated with becoming a commercial loan originator, it would come down to the specific requirements of individual firms and brokers whether a degree would be a requirement for hiring.
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      • In the case of very large loans, you may need to work with multiple lenders to put together a loan package.
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      • If you are a one-person brokerage firm, you may have to function as a commercial loan officer and a broker.
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      References

      1. ↑ https://www.bls.gov/ooh/business-and-financial/loan-officers.htm
      2. ↑ https://nationwidelicensingsystem.org/slr/resources/Pages/GettingStartedStateMLO.aspx
      3. ↑ https://capeschool.com/mlo/
      4. ↑ https://www.nutcache.com/blog/the-importance-of-collaboration-in-the-workplace/
      5. ↑ https://collegegrad.com/careers/loan-officers
      6. https://www.mtgprofessor.com/a%20-%20type%20of%20loan%20provider/lenders,_brokers_and_loan_officers.htm
      7. https://www1.salary.com/Commercial-Loan-Officer-I-Salary.html

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        May 25, 2017

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