What Is a Loan Processor and How to Become One
Table of Contents
What Does a Loan Processor Do?
A loan processor reviews loan applications before sending them to the underwriter for approval. As a loan processor, your responsibilities and duties include organizing required documents and verifying the accuracy and completeness of the loan application. You work as the intermediary between the loan officer and the underwriter, so you will not usually have direct contact with the customer. A good loan processor has excellent data and organizational skills, which are needed to succeed in this career.
How to Become a Loan Processor
Some employers prefer to hire candidates with an associate or bachelor’s degree in finance, accounting, or a relevant field and some work experience in the finance or banking industry, but a post-secondary degree is not required to work in this field. You must have excellent math and communication skills. Acquire a position at a bank to gain experience in the industry; many banks and companies provide on-the-job training. As a mortgage loan processor, some states may require you to have a license unless you are working with a licensed underwriter or mortgage broker.
Is Loan Processor a Good Job?
According to the U.S. Bureau of Labor Statistics (BLS), loan officer, underwriter, and processor jobs will continue to experience significant growth in the near future. The BLS projects an 11% increase in loan officer positions between 2016 and 2026. This rate is higher than the national average for all careers combined, making loan processor careers an excellent option for those interested in the finance field.
Do Loan Processors and Underwriters Work Together?
Loan processors work closely with underwriters. Loan processors handle loan applications before sending them to the underwriter for approval. The borrower completes the loan application with the assistance of a loan officer. The processor then verifies the data and submits the completed application to the loan underwriter, who determines if it should be approved.
Loan Processor Job Description Sample
With this Loan Processor job description sample, you can get a good idea of what employers are looking for when hiring for this position. Remember, every employer is different and each will have unique qualifications when they hire for a Loan Processor role.
Job Summary
We are seeking a Loan Processor to help our clients organize and submit their mortgage loan applications. In this role, you will help our clients gather their financial information and fill out the necessary documents. You must also ensure that the applications are in compliance with all industry and federal regulations. Our ideal applicant has a bachelor's degree in finance, experience working with FHA loans, and strong data entry skills. You also need to be familiar with the entire mortgage process, from application to loan closing.
Duties and Responsibilities
- Help the applicant collect and prepare all necessary information
- Conduct your own research into the applicant's finances
- Create a loan repayment plan
- Submit the application to the underwriter
- Audit all information for regulatory compliance
Requirements and Qualifications
- Bachelor's degree in finance
- Mortgage or loan experience
- Proficiency with software like Microsoft Outlook
- Strong organizational and communication skills
- Attention to detail
