Employment of loan officers is projected to grow 8 percent from 2014 to 2024, about as fast as the average for all occupations. The need for loan officers fluctuates with the economy, generally increasing in times of economic growth, low interest rates, and population growth—all of which create demand for loans.
After a period of decreased lending resulting from the recent recession, banks and other lending institutions are granting an increasing number of loans to people and businesses. Because lending activity is sensitive to fluctuations in the economy, consumer and mortgage loans are expected to increase as the economy recovers. Similarly, many businesses postponed borrowing funds for maintenance, improvement, and expansion during the recession, so commercial loans should increase as businesses become more willing to borrow and banks more willing to lend.
The need for regulatory compliance also should create demand for loan officers. In the wake of the housing and financial crisis, loan applications are undergoing more scrutiny. Loan officers must ensure that the loans they originate are in accordance with state and federal laws, including recently enacted consumer financial protection laws. A stricter regulatory environment means a more labor-intensive loan approval process and a greater need for loan officers.
However, growth in the number of jobs could be somewhat tempered by the expanded use of loan underwriting software, which has made the loan application process much faster. Some loan applications can be completed online and underwritten automatically, allowing loan officers to process more applications in a much shorter period of time.
Prospects for loan officers should improve over the coming decade as lending activity rebounds from the recent recession. Job opportunities should be good for those with lending, banking, or sales experience. In addition, some firms require loan officers to find their own clients, so candidates with established contacts and a referral network should have the best job opportunities.
Percent change in employment, projected 2014-24
Total, all occupations
Note: All Occupations includes all occupations in the U.S. Economy. Source: U.S. Bureau of Labor Statistics, Employment Projections program