A Loan Production Office, or LPO, is a specialized division within a bank responsible for the handling and management of loan requests. LPOs are primarily focused on residential mortgages but are also capable of receiving and processing requests for other types of loans.

Though the LPO does not make the final decision on when a loan request is agreen or rejected, the division is often regarded as an essential part of the loan process. The LPO carries out a significant amount of research and has the authority to suggest whether a loan request should be approved or rejected, as well as offering some initial advice and guidance.

The major role of the LPO is to collect and assess loan requests. It is the responsibility of the LPO to gather the necessary paperwork, information and evidence to make a recommendation on whether the bank should consider the loan. This involves carrying out a thorough gap analysis, contacting lenders in order to obtain truly competitive quotes and then analyzing the forwarded applications. Sometimes, the LPO may require additional paperwork or documents in order to make a more informed decision or to give the applicant a loan package with the best possible terms and conditions.

The LPO also values the importance of maintaining relationships with lenders, providing loan packages that meet their requirements and maintaining the quality of their products. Banks rely upon the LPO to track competitor activities, to keep pace with any changes to competitive loan offerings and to suggest suitable loans for its clients.

In summary, an LPO plays a key role in the loan process, as it is responsible for collecting and analyzing loan requests, evaluating loan packages and ensuring loans are appropriate and competitive. Banks rely heavily upon their LPOs to maintain a competitive edge in an increasingly competitive mortgage market.