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Commercial lender vs loan officer

The differences between commercial lenders and loan officers can be seen in a few details. Each job has different responsibilities and duties. It typically takes 4-6 years to become both a commercial lender and a loan officer. Additionally, a commercial lender has an average salary of $74,995, which is higher than the $45,817 average annual salary of a loan officer.

The top three skills for a commercial lender include commercial loans, customer relationships and loan applications. The most important skills for a loan officer are customer service, origination, and loan origination.

Commercial lender vs loan officer overview

Commercial LenderLoan Officer
Yearly salary$74,995$45,817
Hourly rate$36.06$22.03
Growth rate4%4%
Number of jobs27,01663,663
Job satisfaction-4.5
Most common degreeBachelor's Degree, 75%Bachelor's Degree, 61%
Average age4545
Years of experience66

What does a commercial lender do?

A commercial lender is in charge of handling and processing business loan applications, ensuring accuracy and smooth workflow. Their responsibilities typically revolve around liaising with company representatives to identify their needs, gathering and verifying applications, providing consultations and recommendations, and negotiating contracts and payment arrangements. They must also keep track of all amendments and processes, maintaining records of all transactions. Furthermore, as a commercial lender, it is essential to build positive relationships with clients, all while adhering to the company's policies and regulations.

What does a loan officer do?

Loan officers are responsible for assisting borrowers on the best type of loans to avail and guiding the clients throughout the application process. A loan officer must be highly knowledgeable about different lending products, payment plans, loan regulations, and essential files for fast loan approval. Loan officers also act as the first point of contact, conducting an initial screening of the customers, process loan contracts and appropriate documentation, update account records, and respond to customer's inquiries. A loan officer also has the right to reject loan applicants who do not meet loan qualifications.

Commercial lender vs loan officer salary

Commercial lenders and loan officers have different pay scales, as shown below.

Commercial LenderLoan Officer
Average salary$74,995$45,817
Salary rangeBetween $54,000 And $102,000Between $30,000 And $69,000
Highest paying CitySan Antonio, TXNew York, NY
Highest paying stateWashingtonNew York
Best paying companyIBC BankBangor Savings Bank
Best paying industryProfessionalFinance

Differences between commercial lender and loan officer education

There are a few differences between a commercial lender and a loan officer in terms of educational background:

Commercial LenderLoan Officer
Most common degreeBachelor's Degree, 75%Bachelor's Degree, 61%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Commercial lender vs loan officer demographics

Here are the differences between commercial lenders' and loan officers' demographics:

Commercial LenderLoan Officer
Average age4545
Gender ratioMale, 72.7% Female, 27.3%Male, 55.3% Female, 44.7%
Race ratioBlack or African American, 10.5% Unknown, 4.7% Hispanic or Latino, 13.9% Asian, 5.9% White, 64.5% American Indian and Alaska Native, 0.5%Black or African American, 9.0% Unknown, 4.6% Hispanic or Latino, 15.7% Asian, 6.3% White, 63.9% American Indian and Alaska Native, 0.5%
LGBT Percentage8%8%

Differences between commercial lender and loan officer duties and responsibilities

Commercial lender example responsibilities.

  • Establish contacts within SBA to gain competitive advantage on knowledge of regulation changes and timely processing of applications.
  • Work with COI's, and partnerships to achieve success in helping small businesses with their financial needs.
  • Develop cross-sell opportunities with no-relationship manage business banking clients.
  • Analyze and support development and execution of underwriting, automation and operational strategies to efficiently and effectively manage the portfolio.
  • Identify and execute cross-selling activities throughout multiple areas of the bank.
  • Remain current in guidelines for conventional, FHA, & VA loans.
  • Show more

Loan officer example responsibilities.

  • Manage a multifacete commercial real estate investment firm.
  • Supervise and manage the processing staff and also underwrite conventional loans for correspondent lenders.
  • Follow up leads for refinance loans gather all applications and necessary paperwork to qualify applicants from origination to close of escrow.
  • Analyze available resources to determine suitable mortgage products (FHA, FNMA/FHLC) to meet clients' purchasing or refinancing goals.
  • Originate and process various loan products including government, conventional, portfolio, construction, USDA mortgages, home equity line/loans.
  • Originate FHA, VA, conventional, jumbo, and USDA loans, according to specific lender guidelines in broker environment.
  • Show more

Commercial lender vs loan officer skills

Common commercial lender skills
  • Commercial Loans, 15%
  • Customer Relationships, 14%
  • Loan Applications, 8%
  • Loan Portfolio, 7%
  • Credit Analysis, 6%
  • Bank Products, 5%
Common loan officer skills
  • Customer Service, 17%
  • Origination, 13%
  • Loan Origination, 5%
  • FHA, 5%
  • NMLS, 5%
  • Loan Products, 4%

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