Loan Production Office - LPO

A “loan production office,” or LPO, is the physical location where all of a financial institution’s nitty-gritty, behind-the-scenes, loan-related activities take place.

To better understand what we’re talking about here, let’s discuss what LPOs are not.

LPOs are not bank branches. They tend to be separate locations with their own staff, and they’re dedicated solely to processing loan information.

LPOs are not secretive, private entities. In fact, they’re open to the public; we can stroll into one whenever we have questions about the loan universe, or need to submit additional paperwork for our own loan processing.

LPOs are not the deciding factor in whether or not our loan application is approved. All they do is handle the administration of the whole thing: they process applications, collect necessary paperwork, and generally make sure that all applicable I’s are dotted, T’s are crossed, and O's are turned into hearts.