If you are interested in becoming a loan officer, the information on educational requirements for loan officers on this page can help you determine which type of loan officer you would like to pursue as a career.
There are three types of loan officers. The three types of loan officers include:
- commercial loan officer
- consumer loan officer
- mortgage loan officer
All three types of loan officers require you to hold a bachelor's degree in finance, business, or a related field from an accredited institution or have relevant professional work experience in the financial industry.
You can also earn a certification to build upon your degree and provide you with the extra knowledge and skills necessary to carry out your loan officer duties.
Discover more about the loan officer educational requirements for each type below.
Commercial Loan Officer Educational Requirements
If you are interested in designing loan packages to provide business loans that support the operational or equipment costs of a business, it is recommended that you first earn a bachelor's degree in business, finance or a related field.
You should also pursue the Commercial Lending Certification offered by the Independent Community Bankers of America to become a certified commercial loan officer.
You can earn this certification through ICBA's Commercial Lending Institute that offers a five-day live program. Visit the ICBA website to learn about costs and location.
The program covers topics such as the five Cs of credit, the credit process cycle, loan underwriting and analysis basics, and more.
Consumer Loan Officer Educational Requirements
Consumer loan officer educational requirements vary depending on your situation. You may or may not need a bachelor's degree, but it is suggested to earn a college degree from an accredited institution.
You may be eligible to become a consumer loan officer with relevant work history that meets company standards without a college degree.
The American Bankers Association also provides several online educational facilitated or self-paced training opportunities for new and current consumer loan officers. Find example online ABA training programs below:
- consumer lending
- consumer loan process
- explaining loan modifications
The training programs cost about $100 to $500 depending on membership status.
Mortgage Loan Officer Educational Requirements
The role of a mortgage loan officer usually requires a bachelor's degree and a mortgage loan originator license. State-specific education requirements for mortgage loan officer licensure typically consists of 20 or more hours of prelicensure education.
There are 22 NMLS-approved pre-licensure education providers that offer online courses for MLO licensing. Find a list of a few NMLS-approved pre-licensure education providers below.
- loanofficerschool.com
- 1 Above Ed, LLC
- 1 Stop Training, Inc.
- AAA Mortgage Training
- Affinity Real Estate and Mortgage Services
- Ameritrain Mortgage Institute
- Broker Knowledge Group
You will take the required SAFE MLO national test that covers material in the following areas:
- ethics
- uniform state content
- general mortgage knowledge
- federal mortgage related laws
- mortgage loan origination activities
You may also need to meet continuing education requirements to maintain licensure. If you are required to meet continuing education requirements, you will complete eight or more hours of NMLS-approved CE courses.
There are 26 NMLS-approved continuing education providers that offer online courses for MLO licensing. Examples of NMLS-approved providers are listed below.
- loanofficerschool.com
- ourclasses.com, LLC
- the CE Shop
- RW Media, LLC
- 1 Above Ed, LLC
- 1 Stop Training, Inc.
- 123CE Inc
- AAA Mortgage Training
- Ameritrain Mortgage Institute
- Broker Knowledge Group
Learn about specific state requirements for becoming a mortgage loan officer on your state's official website or the website for the Nationwide Multistate Licensing System.
Other Loan Officer Educational Requirements
Other loan officer educational requirements may include obtaining ABA-loan certifications such as the certified lender business banker or the certified trust and financial advisor.
The Mortgage Bankers Association also offers courses, training, and certification opportunities such as the certified mortgage banker designation. Example core courses include:
- commercial real estate basics
- introduction to mortgage banking
- school of loan origination
You will also receive on-the-job training that may involve formal and informal training to strengthen your decision-making skills, your interpersonal skills, and your ability to take the initiative and be detail oriented.
Determine Your Requirements for Becoming a Loan Officer
You should pursue a bachelor's degree to start your journey to meeting educational requirements for loan officers of any type. You will also fulfill additional training, certification, or licensure requirements for the loan officer role you are interested in.
