Mortgage Loan Officer Training

Job demands require that mortgage loan officer training remain an important part of the educational process in America. Even through tough times in the real estate industry, financial services continued to need experts to help sort through the swamp of property transaction foreclosures. In addition, commercial loan officer training will be toughened and the requirements more stringent in order to avoid another crisis in the future. Credit appeared to be too easily dispensed and applicants not screened well enough in the past. The fault may have been in company policies or perhaps in the training these employees received. "I therefore, the prisoner of the Lord, beseech you that you walk worthy of the vocation wherewith ye are called." (Ephesians 4:1)

Credit officials are mainly employed by banks, credit unions and savings corporations. To be considered for a position handling credit issues, the candidate must possess at least a Bachelors degree in finance or economics. These financial institutions also often look for an applicant who has had prior sales experience. Credit officials are often paid by commission, doing well when the credit rates are low. There are a number of online companies offering training for potential credit officers. If a bank employee already has a foot in the door with stellar work performance, than completing commercial officer training classes may be enough to be considered for employment as a credit official.

The differences between a commercial financial official and a mortgage financial official are fuzzy. Both deal with providing money for real estate purposes. The commercial officer deals with providing credit to businesses for land, existing buildings or new properties. The mortgage officer works with individuals or families to provide financial assistance to buy existing houses, land or new residential dwellings. The business credit official appears to have a more difficult job because commerce ventures are more difficult to dissect financially than an individual or family.

Each of these financial officer positions requires education that is both analogous and dissimilar to one another. Mortgage loan officer training will include a number of topics that are comparable with their business credit counterparts. Things such as mortgage rates, mortgage amortization, interest rates, avoiding discrimination and types of financial assistance are all run along the same learning track as the business assistance officer training. Both training tracks will include how to prospect for potential borrowers and methods to tie a sale up. Both courses will include an understanding of governmental regulations that apply to loan commerce.

However, there will be differences. The residential mortgage loan officer training will not cover risk management assessment in nearly as much detail as the commercial loan officer training entails. Those responsible for preparing credit offers to commerce must know the ins and out of different types of business organizations. For instance, there are partnerships, incorporated businesses or limited companies. Each one of these types of businesses can have very murky financial accountability records. Attempting to trace the path back to a bottom line may prove to be a daunting task. While most credit institutions have legal help to make sense of it all, the final responsibility falls back to the one recommending the credit agreement and the committee that often takes the business assistance officer's gut feelings as a tipping point for approval.

While balloon payment mortgages are sometimes chosen by potential residential mortgage holders, it is the staple of most business loans. Commercial loan officer training classes must provide expertise in the area of balloon loan details. This type of financial assistance typically amortizes financial help over 30 years, but the entire credit balance is due in ten years. A loan such as that is called a 10/30 transaction. Often, a business will then attempt to renegotiate a new loan based on loan rates at that time. Risks are inherently more prevalent in this type of business transaction.

Marketing is a very large part of a credit officer's job description. This is the reason so many financial institutions want credit officers who have had experience in outside sales. Part of both mortgage loan officer training and commercial loan officer training will include methods for prospecting new clients for credit transactions. Mortgage officers will spend a great amount of their work week visiting various real estate brokers, shoring up relationships and building bridges to agents that will recommend home buyers to their financial institution and more specifically to them personally. Much of credit officials' work is spent wirelessly connected with their offices while on the road making new friends for future profit.

Commercial credit officers will also be visiting potential clients. But rather than going through an intermediary such as real estate brokers to get to mortgage clients, business credit officers will visit business owners and both CEOs and CFOs . The purpose of these visits will be to investigate new business ventures that might require additional enterprise capital. Commercial loan officer training will touch on topics foreign to the home mortgage business. These include effective ways to gain the attention of high powered executives, and understanding the culture of corporate America, as well as knowing the needs and concerns of the small business owner.

The projected job growth rate for credit officers is eleven percent by the year 2016. The most successful applicants for these positions will be college graduates with business type of majors. However, college graduates who have taken mortgage loan officer training classes as an adjunct study from an accredited educational institution can break into this career. The median average income for credit officers is slightly above the $50,000 range. This highly competitive career might be for you.

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