Wednesday, July 15, 2009

commercial loan officer

An important function closely related to the commercial real estate industry is that making loans. Commercial lending takes on many forms in today's complex and competitive world. Commercial loans are usually originated at either a bank or savings institution, by a mortgage banker or broker, or by life insurance company or pension fund.
Banks and savings institution generally hire their own loan originators and processors, as do some of the larger life insurance companies and pension funds. However, mortgage brokers often represent smaller life insurance companies, pension funds, and other lenders that cannot efficiently originate their own commercial loans. Loan officers employed by banks and savings institutions usually earn a regular salary, with bonuses sometimes available. lending officers who work for mortgage bankers or brokers generally work on commission basis and are paid after successfully placing mortgage loans that meet the needs of the borrower(e.g., developer investor) and lender(e.g., life insurance company or pension fund)
Commercial mortgage lending requires more business education and analytical skills than residential lending. Since mortgage brokers negotiate loans between borrowers and lenders, they must have strong communication skills.

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