Educational Requirements for Loan Officers

There are currently no widely accepted educational requirements for secured loan officers. Instead, the different institutions that employ these individuals have different requirements.

Most banks and finance companies do not require a college degree or level of education for this position. They often require loan officers to complete some sort of training course and earn a certification. Almost all of the companies that franchise mortgage brokerages require this kind of certification.

Most mortgage brokers will have to earn a state license. Officers handling secured loan such as home equity loan will also have to meet this requirement. The licensure regulations usually do not require a specific program of education, but most candidates for the license take or attend some sort of preparation course.

College for Loan Officers

Many banks and finance companies will require all of their management personnel and many of their back office staff to have at least a bachelor's degree. There is usually no specific degree requirement for these positions.

In some cases, secured loan officers will need to have a degree in a subject such as finance or accounting. Professionals called financial analysts or risk analysts are sometimes employed to examine loan proposals. These individuals usually have to a have a bachelor's degree or higher in a subject such as mathematics, mathematical finance, finance or accounting. It is common for the senior staff in charge of loan departments to have such degrees.

Almost all companies issuing secured loans now expect their upper level management staff to have earned at least an MBA or a master's degree in a subject such as finance. In some cases, individuals in these positions go back to school and complete certifications that show they have completed a certain number of finance or business courses.

Many loan companies and banks now expect some executives to have advanced education in information technology (IT) as well. IT directors will often have to have a master's or a bachelor's degree in a subject such as software design, systems analysis or information technology.

It is common for persons in high-level IT positions in the secured loans industry to have advanced degrees in both mathematics, and software or computer engineering. Many high-level IT personnel also go back to school to get MBAs or master's degrees in project management.

Preparing for a Career as a Loan Officer

Educational Requirements for Loans Officer

The best advice for a person preparing for a career as a secured loan officer would be to get as much as education in related subjects as possible. The best degree would probably be a bachelor's in finance.

In addition to finance, a loan officer should be familiar with these subjects:

  • Business law
  • Financial regulations relating to loans
  • The basic concepts of finance
  • The operation of the financial system
  • Contract law
  • Real estate law
  • Business administration
  • Financial mathematics
  • Accounting
  • Software, including common financial programs such as Oracle
  • Business ethics

Those interested in a secured loan officer career who did not study such topics in their education should definitely consider going back to school. Many excellent continuing education programs, online courses and distance-learning classes cover these subjects. Persons who want to advance in the field and increase their earning potential should take advantage of them.

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