When a loan officer grants a loan to a borrower on behalf of the bank,he or she is acting as which of the following?

Question

Quizplus · Accepted Answer

A loan officer acts as an agent of the bank in granting a loan to a borrower. This means that the loan officer is authorized to act on behalf of the bank in order to extend credit to borrowers. As an agent, the loan officer owes a duty of care and loyalty to the bank and must act in the best interests of the bank when making lending decisions.

When a Loan Officer Grants a Loan to a Borrower