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What is the function of a loan officer?
Loan officers and mortgage brokers are the sales
force of the mortgage lending industry. A loan officer is an individual who finds potential
clients and assists them in applying for loans with a Mortgage Bank or
Mortgage Broker. Loan officers gather personal information about clients
and businesses to ensure that an informed decision is made regarding the
creditworthiness of the borrower and the probability of repayment.
What is the function of a mortgage
broker?
A mortgage
broker is a company that charges a fee to bring borrowers and lenders
together for the purpose of providing a loan to the borrower. The broker’s
job is to help loan applicants obtain a loan product that benefits the
borrower and represents a good investment for the lender. There are
approximately 40,000 mortgage brokers in the United States
What is the function of a Mortgage Banker?
A mortgage
banker is a company that funds loans with its own money and either sells
the loan on the secondary market or retains the loan for its own
portfolio.
There are approximately 2500 Mortgage Banks in the United States.
Do
I need to be licensed to be a loan officer?
It depends. The
mortgage business is regulated by numerous federal and state agencies. The
following is a short list of states where Property Crossing is licensed
and a description of whether an individual loan officer license is
required in each state.
|
State
|
Loan
Officer License Required
|
Education
|
Test
|
Approximate
Cost*
|
|
Alaska
|
No
|
No
|
No
|
No licensing
cost.
|
|
California
|
Yes
|
Real Estate
Principals, Real Estate Practices, and one other course (8 choices)
|
Yes
|
$200 for 1
year real estate agent/loan officer license + cost of classes.
|
|
Colorado
|
No
|
No
|
No
|
No licensing
cost.
|
|
Florida
|
Yes
|
24 Hours
(online or classroom)
|
Yes
|
$223 for 2
year license + cost of class.
|
|
Hawaii
**
|
No
|
No
|
No
|
No licensing
cost.
|
|
Louisiana
|
Yes
|
10 Hours
(online or classroom)
|
Yes
|
$100 for 1
year license + cost of class.
|
|
Michigan
|
No
|
No
|
No
|
No licensing
cost.
|
|
South
Carolina
|
Yes
|
8 Hours
within 90 days after license is issued (online or classroom).
|
No
|
$75 for 1
year license + cost of class.
|
|
Texas
|
Yes
|
30 Hour
(online or classroom) plus 2 Hour Ethics (classroom only)
|
Yes
|
$234 for 2
year license + cost of classes.
|
|
Wyoming
|
No
|
No
|
No
|
No licensing
cost.
|
*Each
loan officer will have $200 per year deducted from their commissions to
cover Errors and Omission insurance. **
Hawaii loans may only be originated to non-residents of Hawaii.
What
skills do I need?
Property
Crossing generally hires loan officers with:
- Sales experience
- Bachelor’s degree or equivalent
- Computer skills
- Ability to work flexible hours
How
much can I make?
The Department of Labor reports that top 10 percent
earned more than $88,450, the middle 50 percent earned between $62,260 and
$33,360, and the median annual earnings of loan officers were $43,980 in
2002 (Source: Department of Labor, Occupational Outlook Handbook)
How
do I get started?
Please
fill out this information form or contact Scott Bialek at 1-888-AWARD-50
extension 5.
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