what is a loan production office 
a loan production office lpo is an administrative division of a bank that as the name implies deals solely with loan related activities the federal reserve defines an lpo as a staffed facility other than a branch which is open to the public and provides lending related services such as loan information and applications regulated by both state law and the board of directors of the main banking facility the lpo itself cannot make loans but may only carry out administrative functions regarding the processing of them for that reason regulations prohibit prevent the lpo facility from being called a branch of the bank unless the state banking commissioner grants an application for it to act in a branch capacity at this point the loan production office may provide full loan servicing 