With increasing demand for loans by the customers, the role of a Loan Officer has increased and it the Loan Officer who interviews applicants, examines, evaluates and authorises or recommends approval for customers' loan applications. The typical functions of a loan officer are:-
- Supervising loan personnel, reporting to him.
- Analyzing applicant financial status, credit-worthiness and property evaluation to determine feasibility of granting loan.
- Corresponding with or interviewing applicants / creditors to resolve questions regarding application information.
- Approving mortgage loan within specified limits or refers to higher authority for approval.
- Lesser experienced loan officers operate with moderate credit authority where more experienced senior loan officers operate with substantial credit authority involving large amounts of money or important customers.
- Ensures loan agreements are complete and accurate according to his bank's / financial institution's policy.
- Conferring with mortgage underwriter to aid in resolving mortage application problems.
- Analyzing potential loan markets to develop prospects for loans.