loan officer

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loan officer

An employee of a financial institution, charged with the responsibility of generating loan business for his or her employer and assisting in all details necessary to complete the loan application process.Sometimes the loan officer also monitors the relationship with the borrower after the loan closes;other times this is taken over by someone else.

Loan Officer

Employees of lenders or mortgage brokers who find bor- rowers,sell and counsel them,and take applications.

Loan officers employed by mortgage brokers may also be involved in loan processing. In the case of a one-person mortgage broker firm, that person is both the broker and the loan officer.

While loan officers are employees, they act more like independent contractors. They are compensated largely, if not entirely, on a commission basis. The typical commission rate is 1/2 of 1% of the loan amount, and successful loan officers earn six figure incomes.

Both lenders and mortgage brokers post prices with loan officers to be offered to consumers. The loan officers usually have limited discretion to reduce the price if necessary to meet competition, and full discretion to raise the price if they can. The difference between the posted price and the price charged the consumer is called an Overage, and the loan officer usually gets a share of it.

References in periodicals archive ?
LendingTree's Loan Officer Directory, launched in January 2014, is a resource directory of NMLS Officers, giving each loan officer who claims a profile the opportunity to engage prospective customers through a personalized page that includes a short bio, photograph and customer reviews.
For example, clients might be qualified for a 30-year fixed rate of 7 percent, but if the loan officer could convince them that the best available rate was 7-1/2 percent or 8 percent, the loan officer would earn more.
This process takes more time and decisions are subject to personal opinions this may work to the applicant's advantage or disadvantage it's important to know how much authority your loan officer has.
The survey found there's a tendency for loan officers to apply subjective factors more favorably for white applicants.
ATLANTA -- XINNIX, the leading provider of sales and leadership training programs for mortgage professionals, announced today the availability of ACCELERATOR Online, a Web-based course focused on helping loan officers devoted to business development create sustainable momentum and immediate results.
Improving lending efficiency is a top priority for branch managers and providing the loan officer with instant, Web-based access to granular information reduces time for the manager, the corporate headquarters and the loan officers themselves," said Brian Lynch, president of Advantage Systems.
The traditional originator/processor relationship sets the stage for loan officer failure, in my mind.
In addition to Volpe, 5 other NOVA Loan Officers made the Scotsman Guide List of Top Originators.
His daily responsibilities include overseeing loan originations, maintaining direct client relationships with various lenders and financial institutions while still maintaining close contact with his loan officers and clients.
Ideally, the local loan officer who understands a client's business is the decision maker.
With the new Loan Officer Compensation rulings dictated by the Federal Reserve fast approaching, mortgage executives are scrambling to find ways to comply.