Education Career Articles

Connect Facebook Connect Twitter Connect Google+ Connect Pinterest Connect Stumbleupon

How to Become a Loan Manager

Career News September 24, 2013

Beginning a career as a loan manager generally begins with becoming a loan officer. Some banks are willing to hire a loan officer with a high school degree, then train them to a loan officer’s capacity. However, higher education is preferable and will open more doors.

Acquire a BA in banking, finance or economics. As a growing number of financial institutions are using underwriting software, it is desirable to be proficient with computers and financial software.

Specializing in Types and Meeting Licensing Requirements

Choose a specific type of lending to go into, such as consumer, mortgage or commercial loans. Maintain a portfolio as this will be crucial for continuing your goal of becoming a loan manager. Consumer loans are given to the individual for specifics such as automobile, personal or home equity loans. Mortgage lenders build their portfolios through building or real estate loans. Commercial loans create the strongest portfolio as they are used for businesses that wish to expand or buy new equipment and inventory.

Your state may require licensing or certification for your particular field of lending. The federal government requires licensing for mortgage loan officers. You must complete twenty hours of course work, pass an exam and submit a background check.

The field is highly competitive with most loan officer jobs paid completely in commissions. The demand is highly dependent on the economy. The job demands good customer service skills, and an ability to appraise solid investments. Risk management assessment is a crucial part of your overall portfolio.

Loan management requires portfolio objectives and risk tolerance limits, sound underwriting, comprehensive financial analysis, satisfactory appraisal techniques and documented loan practices, and sound internal controls.

A certain amount of risk is involved with all bank lending practices. A loan manager determines whether the risks involved with the banks’ lending activities are accurately identified and reported to the senior loan manager and the board of directors.

Banks that are engaged in international lending face risks that domestic lending systems do not. Out-of-country risks may be influenced by the nation’s economic strength, as well as social and political conditions. These may affect the abilities of the foreign borrower to make payments of debt.

Loan Manager Experience and Knowledge are Essential

A loan manager is an upper level banking position that requires a great deal of experience within the banking industry. After creating a successful portfolio, as a loan officer, the bank may require that you secure a bachelor’s or master’s degree in business, finance, or a related field to assure them that you have the knowledgeable background and experience for managing and supervising other employees.

Tasks may include preparing and filing tax returns or preparing financial statements for outside accounts, preparing business activity reports, creating an annual budget, or filing reports for regulatory agencies.

The job entails the supervision of employees performing financial reporting, accounting, billing, payroll, and collections duties. The loan manager must maintain current knowledge of the organizational policies and procedures as well as the federal and state policies and their directives. The manager will be expected to coordinate audits of the company’s accounts and its financial transactions to remain in compliance with federal requirements and statutes.

A loans manager position requires critical thinking and strong skills in risk assessment. As a loans officer, your success is dependent on your interpersonal skills as a salesperson and building a good network within your community.

Your pay rate may vary from $30,000 to $70,000 a year, depending on your commission. The diligence and hard work pays off, however, if you achieve your goal of a loans manager position. The national median pay is $117,000 a year.

As the United States struggles out of its economic slump, the future of business is looking bright. New businesses are being created, with older, more established businesses expanding their industry.

Showing schools in your area

Matching School Ads
5 Program(s) Found
  • Boldly pursue your future in business with an online degree from Post University
  • Degrees at all levels with concentrations in Finance, Marketing, and much more
  • Ranked in the Best Online Bachelors Programs for Veterans by US News & World Report
  • Ranked in the Best Online Bachelor’s Programs by the US News & World Report
Good for Working Adults
  • Accredited
  • Online Courses
  • Flexible Scheduling
  • Accelerated Programs
  • Financial Aid
  • Transferable Credits
5 Program(s) Found
  • Which career path will you take – Business, Nursing, Education, Psychology? Something else? GCU offers more than 100 majors to get you started!
  • Colangelo College of Business: Features more than 25 programs from the bachelor through the master's level, including several high-demand MBA programs and an accelerated accounting degree.
  • College of Nursing and Health Care Professions: Rich 25-year history providing outstanding health care and nursing degree programs, including an RN to BSN program & master's in nursing degrees.
  • College of Education: Whether you are looking to start or advance your career as a teacher or administrator, GCU offers bachelor’s and master’s in education degrees in key areas.
  • College of Humanities and Social Sciences: Provides a job focused education and features a variety of programs from counseling and psychology to justice studies, history and English literature.
  • Does something else interest you? GCU also offers programs in Doctoral Studies; Theology; Science, Engineering & Technology; and Fine Arts & Production. Speak with an enrollment counselor today!
Good for Working Adults
  • Accredited
  • Online Courses
  • Flexible Scheduling
  • Accelerated Programs
  • Financial Aid
  • Transferable Credits
2 Program(s) Found
  • Our online program blends modern business theory with real-world applications
  • SACS accredited with associate's, baccalaureate, & master's degrees & diplomas
  • US News & World Report ranks Online Bachelor’s Programs among top 10%
  • Ranked one of the best for vets business schools by Military Times
  • Qualifying students can take faith in EPCI’s unwavering Fixed Tuition Pledge
Good for Working Adults
  • Accredited
  • Online Courses
  • Flexible Scheduling
  • Accelerated Programs
  • Financial Aid
  • Transferable Credits
1 Program(s) Found
  • Design thinking is a powerful process of problem solving that begins with understanding unmet customer needs.
  • From that insight emerges a process for innovation that encompasses concept development, applied creativity, prototyping, and experimentation.
  • Online Courses
  • View Associates, Bachelors or Graduate Degree Programs in Business Near YOU!
  • Enter YOUR Needs and Requirements. Get Matched to the Perfect Campus or Online Degree Programs for You.
  • Free information for Business Administration and Management, Accounting, Marketing and Advertising, Business Information Systems Degree Programs and MORE.
  • Accredited, Flexible Business Administration and Management Degree Programs to Fit Your Time and Budget. Use our Matching Service - It's Easy and FREE!
  • Online Courses

Showing schools in your area

Matching School Ads
5 Program(s) Found
  • Boldly pursue your future in business with an online degree from Post University
  • Degrees at all levels with concentrations in Finance, Marketing, and much more
  • Ranked in the Best Online Bachelors Programs for Veterans by US News & World Report
  • Ranked in the Best Online Bachelor’s Programs by the US News & World Report
Good for Working Adults
  • Accredited
  • Online Courses
  • Flexible Scheduling
  • Accelerated Programs
  • Financial Aid
  • Transferable Credits
5 Program(s) Found
  • Do you have entrepreneurial visions to advance your career in the business world? Learn about the options available at GCU.
  • Earn a competitive bachelor's or master's degree in the areas of business administration, business analytics, accounting, marketing and more.
  • Many of our business degrees have attained elite accreditation from the Accreditation Council for Business Schools & Programs (ACBSP).
  • GCU nurtures the startup spirit, propelling your entrepreneurial visions on a powerful platform with opportunities to help you thrive.
  • Pursue a next-generation education with an online program or join Grand Canyon University's vibrant and growing campus community in beautiful Phoenix, Arizona.
Good for Working Adults
  • Accredited
  • Online Courses
  • Flexible Scheduling
  • Accelerated Programs
  • Financial Aid
  • Transferable Credits
2 Program(s) Found
  • Our online program blends modern business theory with real-world applications
  • SACS accredited with associate's, baccalaureate, & master's degrees & diplomas
  • US News & World Report ranks Online Bachelor’s Programs among top 10%
  • Ranked one of the best for vets business schools by Military Times
  • Qualifying students can take faith in EPCI’s unwavering Fixed Tuition Pledge
Good for Working Adults
  • Accredited
  • Online Courses
  • Flexible Scheduling
  • Accelerated Programs
  • Financial Aid
  • Transferable Credits
1 Program(s) Found
  • Design thinking is a powerful process of problem solving that begins with understanding unmet customer needs.
  • From that insight emerges a process for innovation that encompasses concept development, applied creativity, prototyping, and experimentation.
  • Online Courses
  • View Associates, Bachelors or Graduate Degree Programs in Business Near YOU!
  • Enter YOUR Needs and Requirements. Get Matched to the Perfect Campus or Online Degree Programs for You.
  • Free information for Business Administration and Management, Accounting, Marketing and Advertising, Business Information Systems Degree Programs and MORE.
  • Accredited, Flexible Business Administration and Management Degree Programs to Fit Your Time and Budget. Use our Matching Service - It's Easy and FREE!
  • Online Courses

Login to your account

Can't remember your Password ?

Register for this site!