PATHWAY: Financial & Investment Planning

CLUSTER: Finance (Planning, services for financial and investment planning, banking, insurance, and business financial management.)

OCCUPATION: Loan Officers

SOURCE: U.S. Department of Labor, Bureau of Labor Statistics http://stats.bls.gov/oco/ocos018.htm

JOB DESCRIPTION: For many individuals, taking out a loan may be the only way to afford a house, car, or college education. For businesses, loans likewise are essential to start many companies, purchase inventory, or invest in capital equipment. Loan officers facilitate this lending by finding potential clients and assisting them in applying for loans. Loan officers also 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. Loan officers may provide guidance to prospective loan applicants who have problems qualifying for traditional loans. The guidance may include determining the most appropriate type of loan for a particular customer and explaining specific requirements and restrictions associated with the loan.

What are the working conditions like?

Working as a loan officer may involve a considerable amount of travel. For example, commercial and mortgage loan officers frequently work away from their offices and rely on laptop computers, cellular telephones, and pagers to keep in contact with their employers and clients. Mortgage loan officers often work out of their home or car, visiting offices or homes of clients to complete loan applications. Commercial loan officers sometimes travel to other cities to prepare complex loan agreements. Consumer loan officers, however, are likely to spend most of their time in an office. Most loan officers work a standard 40-hour week, but many work longer, depending on the number of clients and the demand for loans.

What training, qualifications and/or education do I need?

Loan officer positions generally require a bachelor’s degree in finance, economics, or a related field. Banking, lending, or sales experience is highly valued by employers. Most employers also prefer applicants who are familiar with computers and their applications in banking. Loan officers without college degrees usually advance to their positions from other jobs in an organization after acquiring several years of work experience in various other occupations, such as teller or customer service representative. Personal qualities such as sales ability, good interpersonal and communication skills, and a strong desire to succeed also are important qualities for loan officers.

There are currently no specific licensing requirements for loan officers working in banks or credit unions. Training and licensing requirements for loan officers who work in mortgage banks or brokerages vary by state.

Persons planning a career as a loan officer should be capable of developing effective working relationships with others, confident in their abilities, and highly motivated. For public relations purposes, loan officers must be willing to attend community events as representatives of their employer.

Where to find a job and what is the outlook?

Nationally

In 2004, there were approximately 303,000 loan officers. The field is projected to grow to 376,633 2014. About 9 out of 10 loan officers were employed by commercial banks, savings institutions, credit unions, and related financial institutions. Employment of loan officers is projected to increase more slowly than average for all occupations through 2014. College graduates and those with banking, lending, or sales experience should have the best job prospects.

Statewide

The following chart is from Wisconsin Worknet for number of jobs for loan officers in Wisconsin. Number of Jobs for Loan Officers, Wisconsin, 2004 - 2006: Estimated Employment Ave. # Openings Percent Change 2004 2006 per Year 6660 6850 2.85% 200

Number of Jobs for Loan Officers, Wisconsin, 2002 - 2012: Estimated Employment Ave. # Openings Percent Change 2002 2012 per Year 5500 6610 20.18% 200

Locally

The following information is for the Western Wisconsin area and is for a broad Business or Financial Employment outlook. This chart is taken from the Department of Workforce Development. http://dwd.wisconsin.gov/oea/wda/projections/longterm/lt_wc_rank.xls

Estimate employment Change Annual average Occupational 200 201 New Replace- Total Groups 2 2 Numeric Percent Jobs ments Openings Business/Financial Operations 4,630 5,560 930 20.1% 90 90 180

How Much Money Will I Make?

Nationally At the national level, the median annual earnings of loan officers were $48,830 in May 2004. The middle 50 percent earned between $35,360 and $69,160. The lowest 10 percent earned less than $27,580 while the top 10 percent earned more than $98,280.

Statewide and locally The following charts are from Wisconsin Worknet comparing a variety of counties within in Wisconsin. Entry County Metro*/B.O.S.** Wage Level Hourly Annual Hourly Annual Chippewa $17.65 $36,707 $12.76 $26,546 St. Croix $16.20 $33,691 $15.43 $32,092 Barron $14.62 $30,407 $15.10 $31,416 Brown $14.54 $30,253 $14.54 $30,253 Statewide = $14.57 $30,307 Average County Metro*/B.O.S.** Wage Level Hourly Annual Hourly Annual Brown $41.97 $87,289 $41.97 $87,289 Chippewa $26.42 $54,949 $21.70 $45,126 St. Croix $25.62 $53,279 $36.38 $75,665 Barron $24.85 $51,692 $22.49 $46,782 Statewide = $27.85 $57,936 Experienced County Metro*/B.O.S.** Wage Level Hourly Annual Hourly Annual Brown $55.68 $115,807 $55.68 $115,807 Chippewa $30.80 $64,070 $26.16 $54,416 St. Croix $30.32 $63,074 $46.85 $97,451 Barron $29.97 $62,334 $26.19 $54,465 Statewide = $34.50 $71,750