A loan processor assists borrowers to complete the loan application process efficiently. The CareerStint article below tells you how to become a loan processor.
To select a good school for a loan processor certification, consider:
- Staff experience
- Internship opportunities
If you are conjuring up an image of a computer processor or a similar machine that handles loans and related entities, after hearing the word ‘loan processor’, I am going to have to correct you. Well, you may not be completely wrong of course, since there are plenty of software that have made the banking and loan process much easier. However, a loan processor is not a software, but a person who handles the loan application process for customers. It is his responsibility to ensure that the necessary details for approving a loan are filled in correctly. When you apply for a loan, you do not get the approval immediately. The process goes through a loan processor, an underwriter, the loan officer, etc., until the required conditions have been satisfied, after which it is approved for the client. The paragraphs below will tell you how to become a loan processor.
- A loan processor prepares loan programs for borrowers.
- He helps customers fill the application form – this is inclusive of solving any kind of problem that occurs while filling the form.
- He ensures that the documentation is in a proper condition to be evaluated by the underwriter.
- He helps clients gather the required financial documents.
- A well-experienced loan processor may also go through the client’s payment history and take a call on whether his loan may be approved or disapproved, even before consulting the underwriter.
- In larger organizations, he may help promote products (loan packages) to newer customers as well.
- Strong attention to detail
- Excellent analytical skills
- Presence of mind
- Strong math and statistical skills
- Good interpersonal skills
This section highlights the educational requirements and the training you need to undergo while embarking on this career path.
- As such, it is not mandatory for a loan processor to have a college education. But as you are given more assignments in the organization, you will be expected to possess higher education, therefore, equip yourself with a college degree.
- To begin with, take subjects like math, statistics, economics, etc., for your post-secondary education and make sure you obtain decent grades.
- After high school graduation, you may pursue an associate’s degree in loan processing. Your program would cover subjects like accounts, loan application, and business administration.
- You can even pursue a bachelor’s degree in business communication or banking.
- Most of the courses comprise internships. They will help you gain mastery over the subject.
- Once you are done with your basic education, you may apply to financial institutions for the designation of a loan processor.
- There are many certificate programs that specialize in loan processing.
- Taking a certification will increase your chances of finding the right job and even enhance your resume when you apply for higher positions (within the same or another organization).
- To be eligible to take these certifications, you need to possess a bachelor’s degree. Therefore, once you complete your college degree and internship, you may take one or more of these certifications to supplement your education.
- Your syllabus would comprise subjects like loan processing, account management, real estate, mortgages, finance management, computer applications, debt management, taxes, etc.
- You may apply for advanced courses after some work experience. These courses include subjects like underwriting, fraud, industry banking software, property loan, etc.
- Ideally, standard certifications, like licensed mortgage broker, certified financial planner (CFP), or licensed mortgage loan originator (MLO) will help you get placed in higher positions than a loan processor. Therefore, it would be sensible to take them after some experience.
- You can take the Certified Purple Processor (CPP) or the Certified Master Loan Processor (CMLP) from the NAMP® (National Association of Mortgage Processors®). They are excellent and reputed certifications for loan processors to advance in their career, especially in the mortgage sector.
- Typically, most banks/agencies follow certain guidelines of their own, and you will be provided on-the-job training.
- You will be trained in the technical aspects of the job, software applications, and the overall functioning of the organization.
- The training is mostly sponsored by the company and is mandatory, irrespective of whether your educational qualifications are basic or advanced.
- If you work for a licensed agency, you will not be required to have a license (This point is valid only for loan processors. Loan officers need to be registered.).
- On the contrary, if you are an independent contractor loan processor, you will require to be licensed.
- The salary range of a loan processor may be between USD 25,000 and USD 45,000.
- The pay varies heavily as per the financial institution, level of education, location, and experience.
- Certified professionals may earn well right at the beginning of their career, as opposed to people who have an associate’s or bachelor’s degree without a certification.
- In fact, the salaries of certified processors may be as high as USD 40,000 right in the beginning.
- Again, states like New York and Washington always have a higher demand for loan processors (the median salaries in these states are between USD 35,000 and USD 45,000), while states like Idaho and Hawaii have a comparatively lower range (USD 20,000 to USD 25,000).
- The BLS has predicted a job growth of 8% for this sector between 2012 and 2022.
- The market situation for this field was comparatively lesser a few years back, given the recession and economic decline.
- Recent statistics, however, indicate a rise in the economy, based on which a gradual job rise can be projected.
- To be on the safer side, it is preferable to gain mastery over the lending, loan application, and sales.
Any profession related to banks and other financial institutions requires you to possess excellent analytical skills and arithmetic ability. While you may begin your career as a loan processor, your people skills and experience will help you climb the ladder of success. Be sure you are equipped with the right degree and certification if you intend to carve out a career in this field.