Loan ProcessorJob Description, Salary, Career Path, and Trends
A loan processor is the first point of contact for someone looking to take out a mortgage loan. They assemble and administer the documentation necessary to obtain loan approval, as well as act as a guide during the process.
These processors streamline the procedure of compiling loan application documentation, as well as work directly with underwriters, loan officers, and other experts. By reducing complications, analyzing credit, tracking deadlines, and working directly with other experts in the field, they place customers in the best possible position for approval, without being overwhelmed with unfamiliar paperwork.
This job opportunity involves a variety of different skill sets in order to excel. Candidates with higher level education, especially in business or finance, are well-suited for this position. Additionally, soft skills involving communication along with time management are ideal, and finally, those obtaining or already possessing a mortgage license are fantastic candidates.
Sample job description
The loan processor is responsible for routing mortgage loan files through internal processing systems accurately and efficiently. This includes, but is not limited to, document prep, processing, closing, accounting, reporting, and customer service. This position is vital to the sales staff at [Your Company Name] to promote efficient and correct workflow to meet sales and budget goals. As an ideal candidate, you have proven knowledge of relevant rules and regulations, strong attention to detail, and possess excellent communication and interpersonal skills.
Typical duties and responsibilities
Gather and prepare all necessary documentation for the loan package
Research and evaluate applicant credit status and current financial position to assess client eligibility for loans or mortgages
Order property and loan documentation, such as appraisals, inspections, title searches, site surveys, contracts, and property tax records to help process mortgage loan files
Prepare and maintain all paperwork for existing and new loans and loan disclosures
Create repayment plans
Interview potential clients and assist them in finding suitable loans for their needs
Complete loan applications and inform clients of the rules and requirements
Submit files to the underwriter for approval or denial
Comply with established regulatory guidelines and policies
Act as a liaison between applicants, mortgage brokers and loan officers, and mortgage lending underwriters to help further loan approval
Education and experience
Bachelor’s degree in finance or relevant field
At least two years of experience in banking or finance
Required skills and qualifications
Hands-on experience with banking computer software
Good comprehension of lending procedures
In-depth understanding of loan and mortgage rules and regulations
Excellent communication and sales skills
Great attention to detail
Excellent organizational skills
Exceptional customer service skills
Experience preparing loan documentation
Experience with MS Office
Experience with accounting or business administration
Good at multitasking
Average salary and compensation
The average salary for a loan processor is $44,500 per year in the United States. Some loan processors receive bonuses and/or commissions. Salary depends on the level of experience, education, and geographical location.
Los Angeles, California
New York City, New York
Typical work environment
Loan officers usually work in offices. They might work in banks, realty companies, mortgage companies, financial institutions, or brokerage firms. Some spend part of their day working outside the office meeting with clients at their homes or businesses. Some also work from a home office. The work environment for a loan processor can often be fast-paced and demanding at times.
The typical work hours for a loan processor in an office setting are 9 AM to 5 PM, Monday through Friday. They don’t generally work on Saturdays, but it is often an option. Many loan processors have flexible work hours and many work from home.
Most certifications for loan processors are administered through the National Association of Mortgage Processors (NAMP). They offer several levels of certifications. Here are some of the best NAMP certifications available for loan processors.
Certified Mortgage Processor (CMP). The CMP is a training and certification program for entry-level loan processors looking to advance their mortgage processing careers. The course covers loan processing basics, advanced loan processing, FHA/VA processing, and mortgage underwriting essentials. The CMP can help fast-track your career in the mortgage processing field.
Certified Contract Loan Processor (CCLP). Offered by the NAMP, this certification is for those individuals looking to advance their contract loan processing careers. Topics such as loan processing basics, advanced loan processing, tax return analysis, and appraisal review can give you the skills you’ll need to become an effective contract loan processor.
Certified Master Loan Processor (CMLP). The Certified Master Loan Processor (CMLP) is for people with at least 5 years of experience in loan processing who are looking to advance their careers. Certification requirements include passing a criminal background check, proving you have the required experience, agreeing to the NAMP code of conduct and ethical standards, and agreeing to meet continuing education requirements to maintain your certification.
Start your journey to becoming a loan processor by earning a bachelor’s degree in finance, accounting, or a relevant field. Some entry-level positions only require an associate’s degree. You’ll want to have excellent math and communication skills as well. Generally, you’ll need to gain experience working in the finance or banking industry.
Roles such as customer service representative or loan officer are good stepping stones to becoming a loan processor. Many banks and financial institutions also provide on-the-job training. To become a mortgage loan processor, some states require that you have a license unless you are working with a licensed underwriter or mortgage broker.
US, Bureau of Labor Statistics’ job outlook
SOC Code: 13-2072
Projected Employment in 2030
Projected 2020-2030 Percentage Shift
Projected 2020-2030 Numeric Shift
Automation is the key to the future of lending. Traditionally, the mortgage process has been highly paper-based and analog. Mortgage loans can consist of hundreds of pages of documentation, making the transition from a manual to a digital format essential. Pre-approvals will be exclusively done online where borrowers can upload personal documents themselves. Instead of days, prospective borrowers can find out in minutes if they are approved or not. Underwriters can review mounds of documentation in a few minutes as automation breaks it down into small categories, highlighting the most important information. Chatbots and RPA bots are replacing traditional forms of communication to potential borrowers, making the process even more efficient.
The loan process from mortgage loan origination to underwriting and closing will be performed through automation, greatly reducing discrepancies, exclusions, and errors. Steps such as verifying credit, analyzing borrower information, and ordering property appraisals will also be done via software. Loan processors will need to shift to using and maintaining software tools as opposed to handling the loan processing steps manually.
Sample interview questions
What banking experience do you have?
How do you verify the information and accuracy of a loan application?
How do you calculate income?
What documents or information would you ask for to start processing a loan?
What lenders do you have experience with?
What methods do you use to analyze a borrower’s credit?
How do you determine if a person is suitable for a loan?
How would you approach a demanding underwriter?
How would you handle an upset client?
What valuable information do you get from credit reports and bank statements?
How many loan files were you processing at the same time in your previous job?
Which different loan types do you have experience with?
What would you do if you discovered fraudulent information?
Describe a time when you took the initiative to complete loan processing faster.
How do you minimize the risk for errors in your work?
What is the most challenging loan you dealt with?
What are three important skills you think a loan processor should have?
How familiar are you with mortgage loan guidelines and regulations?
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