Loan Officer

A A A

DEFINITION

Representatives of banks, credit unions and other financial institutions that find and assist borrowers in acquiring loans. Some specialized loan officers, called loan underwriters, analyze and assess the creditworthiness of potential borrowers to see if they qualify for a loan. Loan officers usually work on either consumer or mortgage loans.

INVESTOPEDIA EXPLAINS

According to the U.S. Department of Labor's Bureau of Labor Statistics, nine out of 10 loan officers work for financial institutions.

Some loan officers are compensated through commission for the role that they play in the mortgage process. This commission, which is called origination points, is often negotiable.


RELATED TERMS
  1. Mortgage

    A debt instrument, secured by the collateral of specified real estate property, ...
  2. Loan Register

    A journal that chronicles the recording of time loans. The loan register lists ...
  3. Consumer Credit Delinquencies Bulletin

    A quarterly newsletter targeted to CEOs, senior bank executives and loan officers ...
  4. Loan

    The act of giving money, property or other material goods to a another party ...
  5. Mortgage Broker

    An intermediary who brings mortgage borrowers and mortgage lenders together, ...
  6. Points

    1. A 1% change in the face value of a bond or a debenture. 2. In futures contracts, ...
  7. Underwriter

    A company or other entity that administers the public issuance and distribution ...
  8. Origination Points

    A type of fee borrowers pay to lenders or loan officers in order to compensate ...
  9. Forbearance

    A temporary postponement of mortgage payments.
  10. Mortgage Modification

    A permanent change in a homeowner's home loan terms that makes the monthly loan ...
Related Articles
  1. Online Banks: Lower Costs And Little ...
    Savings

    Online Banks: Lower Costs And Little ...

  2. Banker Or Broker: Which Career Is Right ...
    Professionals

    Banker Or Broker: Which Career Is Right ...

  3. A Tax Primer For Homeowners
    Taxes

    A Tax Primer For Homeowners

  4. Mortgage Points: What's The Point?
    Credit & Loans

    Mortgage Points: What's The Point?

  5. The Benefits Of Mortgage Repayment
    Home & Auto

    The Benefits Of Mortgage Repayment

  6. Lending From A Loan Officer's Perspective ...
    Home & Auto

    Lending From A Loan Officer's Perspective ...

  7. Burdening Your Retirement With A Mortgage
    Retirement

    Burdening Your Retirement With A Mortgage

  8. 5 Tips For Recession House Hunters
    Home & Auto

    5 Tips For Recession House Hunters

  9. Why It’s So Hard to Get Small Mortgage ...
    Credit & Loans

    Why It’s So Hard to Get Small Mortgage ...

  10. Top Reasons To Apply For An FHA Loan
    Credit & Loans

    Top Reasons To Apply For An FHA Loan

comments powered by Disqus
Hot Definitions
  1. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  2. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  3. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
Trading Center