### Bureau of Labor Statistics U.S. Bureau of Labor Statistics

Loan Officers Summary
                        
            
                                                        
                                                                
                        
            
            
            
                            
                                                
                                                
                                                
                                                
            						
							
				                                                
                                            




            			loan officers imageLoan officers meet with potential borrowers and approve loans.							
						Quick Facts:     Loan Officers2023     Median Pay
            						$69,990     per year
										$33.65     per hourTypical Entry-Level Education
                                    Bachelor's degreeWork Experience in a Related Occupation
                                    Less than 5 yearsOn-the-job Training
                                    Moderate-term on-the-job trainingNumber of Jobs, 2022
                                    354,800Job Outlook, 2022-32
                                    3% (As fast as average)Employment Change, 2022-32
                                    10,400What Loan Officers Do
                                                
                        
                        
Loan officers evaluate, authorize, or recommend approval of loan applications.
            
                        Work Environment
                        
Most loan officers are employed by commercial banks, credit unions, mortgage companies, and other financial institutions. Most loan officers work full time, and some work more than 40 hours per week. Except for consumer loan officers, who spend most of their time in offices, these workers may travel to visit clients.
            
                                                How to Become a Loan Officer
                                                
                        
Loan officers typically need a bachelor’s degree and on-the-job training. Mortgage loan officers must be licensed.
            
                        Pay
                        												                            																				    														The median annual wage for loan officers was $69,990 in May 2023.									                                					
						
            
                        Job Outlook
                        						
												Employment							of loan officers is projected to grow							 3 percent from 2022 to 2032, about as fast as the average for all occupations.
						About 25,300 openings for loan officers are projected each year, on average, over the decade.
            			
            			 Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.
						State & Area Data
                       Explore resources for employment and wages by state and area for loan officers.
            
            
						
                        Similar Occupations
                        
                                                    Compare the job duties, education, job growth, and pay of loan officers with similar occupations.
            
            
                        More Information, Including Links to O*NET
                        
                                               
                        Learn more about loan officers by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.
 What Loan Officers Do 
            

			Loan officersConsumer loan officers specialize in loans to people, such as loans for buying cars or paying for college tuition.			
Loan officers evaluate, authorize, or recommend approval of applications for personal and business loans.
Duties
Loan officers typically do the following:
Contact businesses or people to ask if they need a loan
Talk with loan applicants to gather information and answer questions
Explain to applicants the different types of loans and the terms of each type
Obtain, verify, and analyze applicants’ financial information, such as credit rating and income
Review loan agreements to ensure that they comply with federal and state regulations
Approve loan applications or refer them to management for a decisionLoan officers use a process called underwriting to assess whether applicants qualify for loans. After collecting and verifying all the required financial documents, loan officers evaluate the information to determine an applicant’s need for a loan and ability to repay it. Most firms use underwriting software, which produces a loan recommendation based on the applicant’s financial status. Loan officers review the software output together with the evaluation of an applicant’s financial information to make a final decision.
The work of loan officers has customer-service and sales components. For example, loan officers often answer questions and guide customers through the application process. In addition, many loan officers market the products and services of their lending institution and actively solicit new business.
The following are common types of loan officers:
***Commercial loan officers*** specialize in loans to businesses, which often use the loans to buy supplies and to upgrade or expand operations. Commercial loans frequently are larger and more complicated than other types of loans. Some commercial loans are so large and complex that no single bank will provide the entire amount requested. In such cases, loan officers may have to work with multiple banks to put together a package of loans.
***Consumer loan officers*** specialize in loans to people for a variety of uses, such as buying a car or paying college tuition. For simple consumer loans, the underwriting process may be fully automated. However, the loan officer still guides applicants through the process. Some institutions—usually small banks and credit unions—rely on loan officers to complete the underwriting process instead of using underwriting software.
***Mortgage loan officers*** specialize in loans that are used to buy real estate (property and buildings). Mortgage loan officers work on loans for both business and residential purchases. Often, these officers seek out clients, which requires them to develop relationships with real estate companies and other sources that can refer prospective borrowers.
Within these three fields, some loan officers specialize in a particular part of the loan process:
***Loan collection officers*** contact borrowers who fail to make payments. They work with borrowers to help them find a way to keep paying off the loan. If the borrower continues to miss payments on secured loans—those involving collateral, such as a home or a car, that the borrower uses to secure the loan—these officers start the process of taking away the asset and selling it to repay the loan.
***Loan underwriters*** specialize in evaluating whether a client is creditworthy. Underwriters collect, verify, and evaluate the financial information that clients provide on their loan applications and then use loan underwriting software to produce recommendations.
 Work Environment
			Loan officersMost loan officers work full time.			

	    
				
	
	
	
	
	
	
	    					 Loan officers held about 354,800 jobs in 2022. The largest employers of loan officers were as follows:
        Credit intermediation and related activities
                82%Management of companies and enterprises
                4Automobile dealers
                3The credit intermediation industry includes commercial banks, savings institutions, and mortgage companies.
Loan officers who specialize in consumer loans usually work in offices. Mortgage and commercial loan officers may work outside the office and meet with clients at their homes or businesses.
Work Schedules
Most loan officers work full time, and some work more than 40 hours per week.
 How to Become a Loan Officer

			Loan officersLoan officers must pay attention to detail, as each piece of information on an application can have a major effect on the profitability of a loan.			
Loan officers typically need a bachelor’s degree and on-the-job training. Mortgage loan officers must be licensed.
Education
Loan officers typically need a bachelor’s degree, usually in a field such as business or finance. Because commercial loan officers analyze the finances of businesses applying for credit, they need to understand general business accounting, including how to read financial statements.
Some jobseekers may be able to enter the occupation without a bachelor’s degree if they have related work experience, such as in banking, customer service, or sales. Organizations that specialize in certain fields typically prefer to hire candidates who have some experience in those areas. For example, mortgage companies may prefer to hire candidates with residential mortgage or real estate experience.
Training
Once hired, loan officers typically receive some on-the-job training. This may be a combination of formal, company-sponsored training and informal training during the first few months on the job.
Licenses, Certifications, and Registrations
Mortgage loan officers must have a Mortgage Loan Originator (MLO) license. To become licensed, they must complete prelicensing courses, pass a national exam, and submit to background and credit checks. Licenses must be renewed annually, and individual states may have additional requirements. Check your state licensing agency website for more information.
Several banking associations, including the American Bankers Association and the Mortgage Bankers Association, as well as a number of schools, offer courses, training programs, or certifications for loan officers. Although not required, certification shows dedication and expertise and thus may enhance a candidate’s employment opportunities.
Important Qualities
***Decision-making skills****.* Loan officers must assess an applicant’s financial information and decide whether to approve the loan.
***Detail oriented.*** Information on an application affects the potential profitability of a loan, so loan officers must pay attention to details.
***Initiative.*** Loan officers may act as salespeople in promoting their lending institution, so they must contact people and businesses to determine their need for a loan.
***Interpersonal skills.***Loan officers must be able to guide customers through the application process and answer their questions.
 Pay

			



	
 
                                                     
            
    
                Loan OfficersMedian annual wages, May 2023Financial specialists$80,090  Loan officers$69,990  Total, all occupations$48,060Note: All Occupations includes all occupations in the U.S. Economy.Source: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics
 

	
	



		
	
	
	
The median annual wage for loan officers was $69,990 in May 2023. 


The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $37,020, and the highest 10 percent earned more than $139,470.





		
	    					 In May 2023, the median annual wages for loan officers in the top industries in which they worked were as follows:	
        Automobile dealers
                $100,210Management of companies and enterprises
                76,570Credit intermediation and related activities
                66,900Compensation varies widely by employer. Some loan officers are paid a flat salary; others are paid on commission. Those on commission usually are paid a base salary plus a commission for the loans they originate. Loan officers also may receive extra commission or bonuses based on the number of loans they originate or how well the loans perform.
Most loan officers work full time, and some work more than 40 hours per week.
 Job Outlook

   
        
    
          
        
    
               Loan OfficersPercent change in employment, projected 2022-32Financial specialists5%  Total, all occupations3%  Loan officers3%Note: All Occupations includes all occupations in the U.S. Economy.Source: U.S. Bureau of Labor Statistics, Employment Projections program
            
            
			 
	
	
	

			Employment				of loan officers is projected to grow				 3 percent from 2022 to 2032, about as fast as the average for all occupations.
			
			About 25,300 openings for loan officers are projected each year, on average, over the decade.
			
			 Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.
			Employment
	
			
Increased demand for loan officers is expected as both businesses and individuals seek credit to finance commercial investments and personal spending. Loan officers will be needed to evaluate the creditworthiness of applicants and determine the likelihood that loans will be paid back in full and on time.
However, the decline of bank branches and the increased use of productivity-enhancing technology in loan processing are expected to slow employment growth.

			

                        Employment projections data for     loan officers, 2022-32
                Occupational Title
                        SOC Code
                        Employment, 2022
                        Projected Employment, 2032
                        Change, 2022-32
                        Employment by IndustryPercent
                        NumericSOURCE: U.S. Bureau of Labor Statistics, Employment Projections program**Loan officers**
			13-2072
			354,800
			365,300
			3
			10,400
			Get data
 State & Area Data **Occupational Employment and Wage Statistics (OEWS)** The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OES data maps for employment and wages by state and area. Loan officers **Projections Central** Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.com. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved. **CareerOneStop** CareerOneStop includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.
 Similar Occupations This table shows a list of occupations with job duties that are similar to those of loan officers. Occupation
                Job Duties
                ENTRY-LEVEL EDUCATION
                2023     MEDIAN PAY**Financial Analysts**
            Financial analysts guide businesses and individuals in decisions about expending money to attain profit.
            Bachelor's degree
            $99,890**Financial Examiners**
            Financial examiners ensure compliance with laws that govern institutions handling monetary transactions.
            Bachelor's degree
            $84,300**Personal Financial Advisors**
            Personal financial advisors provide advice to help individuals manage their money and plan for their financial future.
            Bachelor's degree
            $99,580**Tax Examiners and Collectors, and Revenue Agents**
            Tax examiners and collectors, and revenue agents determine how much is owed in taxes and collect tax from individuals and businesses on behalf of the government.
            Bachelor's degree
            $58,530**Insurance Sales Agents**
            Insurance sales agents contact potential customers and sell one or more types of insurance.
            High school diploma or equivalent
            $59,080**Securities, Commodities, and Financial Services Sales Agents**
            Securities, commodities, and financial services sales agents connect buyers and sellers in financial markets.
            Bachelor's degree
            $76,900**Real Estate Brokers and Sales Agents**
            Real estate brokers and sales agents help clients buy, sell, and rent properties.
            High school diploma or equivalent
            $56,620**Financial Managers**
            Financial managers create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.
            Bachelor's degree
            $156,100**Tellers**
            Tellers are responsible for accurately processing routine transactions at a bank.
            High school diploma or equivalent
            $37,640
 Contacts for More Information
								
For more information about certification and training for loan officers, visit
American Bankers Association (ABA)
For more information about a career as a mortgage loan officer, visit
Mortgage Bankers Association (MBA)
For more information about licensing for mortgage loan officers, visit
Nationwide Multistate Licensing System (NMLS)
State bankers associations have specific information about job opportunities in their state. Also, individual banks can supply information about job openings and the activities, responsibilities, and preferred qualifications of their loan officers.
CareerOneStop
For a career video on loan officers, visit
Loan officers

                                                
                                                        
                                                                                                    O*NET
                                        Loan Officers
 Suggested citation: Bureau of Labor Statistics, U.S.  Department of Labor, Occupational Outlook Handbook, Loan Officers, 
        	 at https://www.bls.gov/ooh/business-and-financial/loan-officers.htm (visited *May 21, 2024*).
 **Last Modified Date:**
                        Wednesday, April 17, 2024


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