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.

Searching Searching ...

Matching School Ads
1 Program(s) Found
  • Available business concentrations include Accounting, Economics, General Management, Marketing, and Human Resource Management.
  • Ranked among the Best Online MBA and Online Graduate Business Programs in 2016 by U.S. News & World Report.
  • Programmatic accreditation provided by the Accreditation Council for Business Schools and Programs (ACBSP).
  • Regionally accredited by the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC).
  • Online Courses
2 Program(s) Found
  • Online bachelor's and master's level Business programs are available.
  • Courses are designed to teach practical business solutions, with a career-focused curriculum.
  • Students can study in areas such as business, applied management, and business administration.
  • Experienced professionals equip students with a working knowledge of marketing, financing, accounting, and sales.
  • Students who have graduated high school in or before 2015 are eligible to apply.
  • Online Courses
2 Program(s) Found
  • Named a Best for Vets school by the Military Times in 2014.
  • Has specialized in student-centered technology, business, criminal justice, health science, and culinary education for over 45 years.
  • Makes it possible for students to earn a bachelor’s degree in 2.5 years or an associate’s in 1.5 years by providing a year-round schedule.
  • Offers externships and clinical experience that help students prepare for life after they graduate.
  • Has 10 campuses across the mid-Atlantic, plus online degree programs.
Good for Working Adults
  • Online Courses
  • Flexible Scheduling
  • Accelerated Programs
  • Financial Aid
  • Transferable Credits
2 Program(s) Found
South University , Virginia Beach
  • Program options include Accounting, Business Administration, Leadership, and more.
  • Curriculum focuses on developing leadership, critical thinking, problem-solving, and communication skills.
  • Programmatic accreditation by the Accreditation Council for Business Schools and Programs (ACBSP) at select campuses.
  • Business programs are available at many of the 11 campus locations across the United States.
Good for Working Adults
  • Flexible Scheduling
  • Financial Aid
5 Program(s) Found
  • Average class size is 25, allowing for more one-on-one time with instructors.
  • Has a 97% employment rate among available graduates.
  • All  graduates receive Lifetime Employment  Assistance—free and forever.
  • Michigan's largest independent college.
  • Most instructors are working professionals in the fields they teach.
  • Programs are continuously updated to ensure classes are career-relevant and in sync with what's needed in the industry
Show more [+]
Good for Working Adults
  • Accredited
  • Online Courses
  • Flexible Scheduling
  • Accelerated Programs
  • Financial Aid
  • Transferable Credits
1 Program(s) Found
  • Full Sail’s curriculum combines elements of creativity, art, business and life skills, technical prowess, and academic achievement.
  • Full Sail offers accelerated programs, so a degree that would normally take four years takes 24 months on average.
  • Students work with industry-standard tools and technologies, allowing them to gain practical knowledge and real-world experience.
  • Join us on Facebook, Twitter, YouTube and Instagram to interact with our community, read about grad success, and see campus images.
  • Online Courses

Searching Searching ...

Matching School Ads
2 Program(s) Found
  • Online bachelor's and master's level Business programs are available.
  • Courses are designed to teach practical business solutions, with a career-focused curriculum.
  • Students can study in areas such as business, applied management, and business administration.
  • Experienced professionals equip students with a working knowledge of marketing, financing, accounting, and sales.
  • Students who have graduated high school in or before 2015 are eligible to apply.
  • Online Courses
2 Program(s) Found
  • Named a Best for Vets school by the Military Times in 2014.
  • Has specialized in student-centered technology, business, criminal justice, health science, and culinary education for over 45 years.
  • Makes it possible for students to earn a bachelor’s degree in 2.5 years or an associate’s in 1.5 years by providing a year-round schedule.
  • Offers externships and clinical experience that help students prepare for life after they graduate.
  • Has 10 campuses across the mid-Atlantic, plus online degree programs.
Good for Working Adults
  • Online Courses
  • Flexible Scheduling
  • Accelerated Programs
  • Financial Aid
  • Transferable Credits
1 Program(s) Found
  • Available business concentrations include Accounting, Economics, General Management, Marketing, and Human Resource Management.
  • Ranked among the Best Online MBA and Online Graduate Business Programs in 2016 by U.S. News & World Report.
  • Programmatic accreditation provided by the Accreditation Council for Business Schools and Programs (ACBSP).
  • Regionally accredited by the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC).
  • Online Courses
5 Program(s) Found
  • Average class size is 25, allowing for more one-on-one time with instructors.
  • Has a 97% employment rate among available graduates.
  • All  graduates receive Lifetime Employment  Assistance—free and forever.
  • Michigan's largest independent college.
  • Most instructors are working professionals in the fields they teach.
  • Programs are continuously updated to ensure classes are career-relevant and in sync with what's needed in the industry
Show more [+]
Good for Working Adults
  • Accredited
  • Online Courses
  • Flexible Scheduling
  • Accelerated Programs
  • Financial Aid
  • Transferable Credits
1 Program(s) Found
  • Full Sail’s curriculum combines elements of creativity, art, business and life skills, technical prowess, and academic achievement.
  • Full Sail offers accelerated programs, so a degree that would normally take four years takes 24 months on average.
  • Students work with industry-standard tools and technologies, allowing them to gain practical knowledge and real-world experience.
  • Join us on Facebook, Twitter, YouTube and Instagram to interact with our community, read about grad success, and see campus images.
  • Online Courses

Login to your account

Can't remember your Password ?

Register for this site!