Commercial Loan Officer Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a commercial loan officer. Feel free to use our commercial loan officer job description template to produce your own. We also provide you with information about the salary you can earn as a commercial loan officer.
Who is a Commercial Loan Officer?
Commercial loan officers work for credit unions, commercial banks, mortgage companies, and other financial institutions as decision-makers who exercise critical thinking during the application review process. They examine loan applications and verify all financial information provided by applicants to determine whether they will be able to make timely loan payments. They make a recommendation regarding the loan application’s approval or denial based on the applicant’s information and other pertinent information uncovered during the application process.
Commercial loan officers also manage loan administrators and double-check their paperwork for loan approval or denial. After accepting and disbursing funds, they ensure that repayments are received on time, which may require follow-up phone calls and outreach to borrowers to ensure they are repaying their line of credit in full. When a borrower’s payments are consistently late, the loan officer may refer the borrower to a collection agency. Commercial loan officers must possess a bachelor’s degree in finance and are trained on the job by their employers.
Commercial loan officers also find a loan arrangement that benefits both the applicant and the bank or financial institution that extended the loan.
This professional is well-versed in the various types of loans offered by financial institutions. Along with an understanding of the general terms associated with each loan type, the commercial loan officer should have a thorough working knowledge of the requirements or conditions that applicants must meet to qualify for each loan type. Additionally, a knowledgeable commercial loan officer will be up to date on any upcoming promotional specials on loans, including any special interest rates that are only available for a limited time.
Additionally, the commercial loan officer will be an expert at evaluating loan applicants’ financial standing. This is especially critical when applicants are overcoming adverse financial circumstances or are just beginning to establish a credit history. A knowledgeable commercial loan officer will be aware of loan opportunities that may be of interest to individuals seeking financing but who face a variety of extenuating circumstances. Typically, the commercial loan officer will be familiar with loans that will fit nearly any economic situation, assuming that it is possible to establish both the ability and willingness to repay the loan according to the terms of the loan.
Commercial loan officers are trained to work in a variety of different types of lending institutions. Banks typically employ multiple commercial loan officers in each local branch, with some officers specializing in specific loan types, such as personal or small business loans. Commercial loan officers or associates are also prevalent in commercial lending institutions that specialize in national and international business expansion financing, credit banking firms that specialize in consolidation loans, and organizations that specialize in educational loan underwriting.
With the advent of the Internet, commercial loan officers can now accept and evaluate online loan applications, allowing applicants to interact with commercial loan officers representing a diverse range of loan institutions, rather than relying exclusively on local banks and lending companies.
Commercial loan officers assist individuals and businesses in obtaining financing. Loan officers frequently assist individuals in obtaining financing for homes, automobiles, college tuition, and even start-up businesses. They establish the amount of money that the individual should receive and communicate any loan requirements or stipulations.
Commercial Loan Officers serve as a liaison between the lending institution and the consumers seeking loans. Commercial Loan Officers are responsible for managing loan portfolios that include commercial and agricultural loans and analyzing applicants’ credit histories to determine loan repayment capacity.
Commercial Loan Officer Job Description
Below are the commercial loan officer job description examples you can use to develop your resume or write a commercial loan officer job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of a commercial loan officer include the following:
- Consulting with customers to ascertain their needs and making loan product recommendations to meet those needs
- Keeping abreast of the organization’s loan products and the qualifications necessary
- Examining active loans to determine if any documents are missing and whether any modifications can be made to expedite the process for each customer
- Using expert opinion to determine whether a prospective borrower represents a good risk for the organization
- Consulting supervisors regarding credit policies, credit lines, standards, and procedures.
- Assisting clients in determining the most appropriate loan and credit options.
- Acquiring and evaluating financial data, such as financial statements and credit histories.
- Collaborating with other financial institutions to structure loan packages for large amounts of money.
- Conducting due diligence on the lending process from application to documentation of the closing.
- Coordinating communications between borrowers and underwriting departments.
- Giving arrangements for payment and preparation of delinquent loan reports.
- Maintaining current knowledge of changes to loan policies, lending procedures, and regulations.
- Evaluating the financial situation and credibility of loan applicants
- Selling business loans, mortgages, and other financial products to customers.
- Discussing various loan and credit options with borrowers
- Approving loans up to a predetermined limit and rejecting applications that fall short of the borrowing threshold
- Educating borrowers about loan repayment schedules
- Examining and maintaining loan and credit documentation
- Obtaining and compiling copies of applicants’ credit histories, financial statements, and other financial information Assuring clients’ compliance with loan agreements and timely repayment
- Contributing to credit underwriting and documentation.
- Managing and growing our commercial loan portfolio successfully.
- Managing a loan portfolio and may be responsible for coordinating collection efforts.
- Ascertaining that all loan documents are complete, accurate, and conform to policy.
- Maintaining strong relationships with customers and members while maintaining an active prospecting program.
- Serving as the client’s point of contact for routine daily administration.
- Assisting all bank lending divisions by administering all commercial loan transactions on behalf of clients.
- Administering the collection process internally or through bank counsel, while adhering to all applicable laws and regulations.
- Preparing and overseeing the processing of title work at the department of revenue.
- Initiating internal discussions with senior management about the assigned market’s areas of success or improvement.
Other important tasks include the following:
- Evaluating Loan Requests
Commercial loan officers must thoroughly examine loan applications and verify the financial information provided to determine whether the business applying for the loan is capable of making monthly loan payments on time.
- Examine Credit Reports
Along with reviewing loan applications, commercial loan officers must assess the applicant’s credit history. This entails identifying all possible financial assets owned by the business and determining their value with the loan amount requested.
- Accept Loans
After assessing a loan candidate, the commercial loan officer will recommend approval or rejection of the loan application based on the information provided by the business and data uncovered during the application process.
- Supervisory Oversight of Loan Administrators
A commercial loan officer is frequently a supervisory position that entails supervising loan administrators and double-checking their loan documentation for approval or disapproval of requested loans.
- Approving loans and making payments
After approving a loan and transferring funds to a commercial client, the commercial loan officer is responsible for ensuring that loan payments are made on time. This may entail following up with borrowers via phone calls and checking in to ensure they are repaying their line of credit. If loan payments are not made on a timely basis, commercial loan officers may be required to take action by reporting defaulting borrowers to collection agencies.
Qualifications
While some employers will accept candidates with a high school diploma or GED and completion of a mortgage finance certificate program, the majority of employers prefer candidates with a bachelor’s degree in finance, economics, business, or a closely related field. Having said that, students who excel in mathematics are excellent candidates for loan offer training programs.
Aspiring loan officers who earn a bachelor’s degree in finance develop the skills necessary to negotiate and present deals in the best interests of a consumer or business. This degree — or any other formal education experience — will also ensure that candidates are computer literate and possess the necessary business writing skills for this industry.
Training
To qualify for a commercial loan officer position, candidates typically complete a combination of on-the-job training and formal, company-sponsored education. Numerous businesses offer formal onboarding programs for new hires and then provide informal on-the-job training during the first few months after hire.
Certifications
Certification or licensing may be required for the work you intend to perform. Among the most frequently obtained certifications and licenses are the following:
- Mortgage Lender
All mortgage loan offers must be made by a mortgage loan originator who is licensed (MLO). The exam consists of a national and a state component that varies by state. Candidates must complete a minimum of twenty hours of pre-licensure education. They must pass a written examination, as well as a background and credit check.
- Certified Mortgage Banker (CMB) Certification
Candidates for the CMB certification have two options: Residential CMB or Executive CMB. Candidates for the Residential CMB must have at least five years of experience in real estate finance. They must then pass a six-hour written examination and a one-hour oral examination. Candidates for the Executive CMB must have at least ten years of experience in real estate finance. Additionally, they must have completed the MBA’s CMB prep course. Once qualified, candidates must pass a six-hour written exam and a one-hour oral exam.
Essential Skills
A commercial loan officer’s position requires a variety of skills. They include the following:
- Detail-oriented
Candidates must possess an uncanny ability to pay attention to detail, as each piece of information included in a customer’s application has the potential to affect the profitability of a loan.
- Decision-making skills
The ability to choose between two or more courses of action is referred to as decision-making abilities. Commercial loan officers must evaluate an applicant’s financial information and then determine whether the applicant is a qualified borrower.
- Personality traits
Often referred to as “people skills,” these refer to the capacity for effective communication, active listening, and teamwork. Commercial loan officers must be able to communicate effectively with customers to guide them through the application process and ensure that all required information is completed completely and accurately. Additionally, they must be able to answer questions and reassure clients throughout the process.
- Technical skills
These are the math and finance skills that candidates must possess to process loans successfully.
- Initiative
Selling is the primary objective of this role. If the commercial loan officer works for a large company, they may spend the majority of their day taking calls and selling loan products to potential customers. Additionally, they may work to generate leads on their own. In either case, the loan officer will spend the majority of the day selling, and thus must be able to independently assess and initiate sales or lead generation.
How to Become s a Commercial Loan Officer
The following are the typical steps necessary to pursue a career as a loan officer:
- Continue your education.
While some employers will accept candidates with a high school diploma or GED who have completed a certification program, the majority of employers prefer loan officer candidates to have a bachelor’s degree in finance or a related field. Search for available commercial loan officer positions in your geographic area and ascertain the required level of education in your immediate area.
- Obtain a driver’s license.
If you wish to pursue a career as a commercial loan officer, you must obtain a license. Though not required, you may want to consider obtaining a CMB certification to demonstrate your commitment and increase your marketability.
- Maintain an updated resume.
If you intend to work as a commercial loan officer and have the necessary education or certifications and a license, you should update your resume. Include your highest level of education, relevant work experience, and transferrable skills in your resume. Highlight the skills you used in previous roles that qualify you for a commercial loan officer position.
- Submit job applications.
Search for available loan officer positions in your geographic area and identify the positions for which you are the most qualified based on your education and experience. If you require additional experience, seek commercial loan officer assistant positions before applying for loan officer positions. Apply for the positions using your newly updated resume and a customized cover letter for each position.
Where to Work as a Commercial Loan Officer
Commercial loan officers work in places like Commercial Banks, Mortgage Banks, Cooperatives, and other Financial Institutions. In some cases, they work outside of the office, meeting with customers at their homes or places of business.
Commercial Loan Officer Salary Scale
In the United States, the average salary for a Commercial Loan Officer is $161,477 per year.