Loan Officer Certification Requirements
Loan Officer are employed by many companies and individuals. A Loan Officer is one who acts as the representative of a lender or the financing company in a loan application process. Loan officers review, approve, or recommend approval of individual loan applications to individuals and companies.
The loan officer's responsibilities include providing necessary information to the applicant about the terms and conditions of the loan. Loan Officers are responsible for ensuring that the loan documents are current and provide accurate information regarding both the loan and the amount of money needed for the loan. Loan officers also provide information about loan approval and what types of collateral can be offered for the loan. A loan officer can recommend whether the borrower can obtain funding from a bank, other lender, a credit union, a private investor, or from another financial institution.
Some states have additional duties for a loan officer. The Loan Officer Certification Board (OLB) certifies loan officers in all 50 states and is the only regulatory body authorized to conduct loan officer training seminars and examinations. It is also required for loan officers to pass an examination that tests their understanding of laws concerning loans.
In most states, Loan Officers must be licensed to practice. States differ on the licensing requirements for loan officers, as do their rules for training and continuing education requirements. Most states require a minimum amount of experience in loan officer activities.
A Loan Officer Certification Board (OLB) also sets the qualification level for loan officers. Each state has its own eligibility criteria that must be met before a license can be issued. These include but are not limited to, a high school diploma or GED; successful completion of the National Association of Security Dealers (NASS) course; at least five years of experience in loan-related work; and a certified course in criminal justice or a related field.
A number of factors are considered when determining the state's certification requirements. States may consider the licensing requirements of other state agencies, such as the Office of the Superintendent of Financial Institutions in the state, or the Federal Trade Commission. {FTC). They also look at whether the license was renewed or revoked by the Commission on License Recission.
The federal government also has requirements that state agencies must meet. The U.S. Department of Education's Office of Special Education Programs regulates and enforces the Special Education Program rules for public schools. The Department of Labor regulates lenders of special education programs, including loan officers. and lenders of postsecondary education programs.
The Office of Special Education Programs administers the Federal Perkins Loan Program, which provides financial assistance to students through the Pell Grant Program. The Federal Student Loans and Grants Program, also known as the Title IV-Eligible Education Assistance Program, offers financial assistance for students enrolled in post-secondary education or who want to attend a college or university but cannot afford the tuition and other expenses of a private or public four-year college or university. Other federal programs that state loan officers must adhere to include Title I of the Elementary and Secondary Education Act, known as the FAFSA, and the Higher Education Act.
States will determine their own rules and regulations to hire loan officers. The state in which you live will have the final say on how many hours of training and education for a license must have, whether or not they can work from home, and whether or not to accept an education program certification from a national board or accrediting body. Most states will not hire a license that does not come with their specific state requirements, which must include both experience and education.
Each state's regulations differ. You should carefully review your state's laws, including licensing, to make sure you are eligible to work there and still meet all state licensing requirements.
After you complete the required educational and experience requirements, you may be able to secure your loan officer license without ever going through the process. There are several organizations and companies that will assist you with getting your loan officer license or permit, allowing you to operate your business legally without having to go through the process.
