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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

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.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
References in periodicals archive ?
At Prospect, we are aware of many of these common sense approaches, such as 'speed-to-lead' and professionalism," Camerer commented, adding that loan officers should remember borrowers' specific needs like "eliminating debt" and "shorter payoffs to retirement." Camerer concludes that LendingTree's course "was very detailed, but straightforward regarding steps to take during the entire process.
In some cases, that impression can create serious problems -- even rejections of applications by loan officers who don't know how to work with pre-retiree and retired applicants.
The Movement Marketing Suite transforms retail mortgage marketing by connecting retail loan officers to a comprehensive suite of technology tools and strategies backed by a team of personal brand and mortgage marketing consultants.
Cotton Thomas was hired to work as a loan officer in the Greenville branch office.
Now let's take a look at evidence that the CFPB and other regulators are looking into the extent to which preventable loan officer errors are harming consumers.
Faber of Auburn as senior loan officer, succeeding Mr.
Clients who consider their loan officer to be not just another bank representative, but a trusted advisor -- or even a friend -- tend to refer him or her to parents, grandparents, children, neighbors, and colleagues.
In the context of bank loans, on-the-job experience would enable the loan officer to cultivate tacit knowledge about the local business environment, the banks' peculiar strengths, weaknesses, and processes, or the interaction of various entrepreneurial/small-business characteristics which may increase the odds of a successful venture.
The introduction of secure wireless technology has created a new breed of loan officer, frequently out in the field and rarely behind a desk, said Beaupre.
If the client occasionally violates covenants, the loan officer must address and obtain credit approval to waive the default, amend the covenant default or call the loan.
The couple was bewildered when the loan officer informed them that only a few lenders were willing to underwrite the loan, and only for 80%, because of Edward's low credit rating.