loan officer

Also found in: Acronyms, Wikipedia.

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 ?
He comes to PrimeLending after working at Amegy Mortgage as a loan officer.
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.
Based on the background of the loan officers, the effects of reporting basis and service level are in no way explained by the experience of the loan officer involved.
The traditional originator/processor relationship sets the stage for loan officer failure, in my mind.
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.