Job Description and Salary Range of a Loan Processor

A loan processor ensures that the process of applying for a loan and completing the required formalities is carried on smoothly. This CareerStint write-up gives you the job description and salary range of a loan processor.

Fast Fact
A loan processor is different from an underwriter. The former prepares the loan application documents to be reviewed by the underwriter.

The process of obtaining a loan from a financial institution is not a cakewalk. Several factors are considered by a bank before providing a loan, some of which include the person’s credit history, credit score, payment records, etc. To obtain a loan, you need to complete an application process. This is where a loan processor enters. He is the one who helps the borrower complete the application form with precision. The duties of a loan processor are enlisted in the paragraphs to follow.

• A loan processor has a multitude of responsibilities.
• To phrase it in the simplest way possible, his duty is to help clients complete their loan application.
• He questions the clients regarding their financial status and payment history.
• He mostly works in an office, but may be required to work via telephone or email as well.
• He helps customers choose the right type of loan or mortgage, depending on certain factors.
• He checks and verifies the important documents that belong to the customer – these include their credit reports, asset value statements, employment duration, and other financial statements.
• He may be responsible to conduct a background check on the borrower as well.
• He checks and considers other pointers, like assets owned, salary, savings, expenditure, debts, installments, tax returns, etc.
• These factors are of prime importance and heavily matter during loan approval. For example, a borrower who already has a heavy debt and pays small installments may not be a very eligible candidate for a loan. Or, a borrower may have a bad credit score and may not qualify for a loan. These factors have to be considered and analyzed by the loan processor.
• He checks for late payments, bankruptcy, etc., and may give you an idea regarding the approval/disapproval of your loan.
• He has to gather copies of all the necessary documents, verify the accuracy and authenticity, and file them neatly for the underwriter or loan officer.
• He is also obliged to assist the borrower with the post-approval process.
• Once the loan has been approved, it is his responsibility to handle the formalities related to the closing of the loan.
• He has to handle the issues of loan repayment and interest rates.
• Although product promotion is a primary responsibility of a loan officer, in many companies, the loan processor is expected to call customers regarding new products, loan packages, and distribute brochures.
• He has to meet deadlines and coordinate procedures.
• He is also expected to assist with business development and marketing.
• Mortgage loan processors particularly survey important information; they gather details about the property, property owner, borrower, etc. They also review the title and appraisal reports.
• Credit analysis and employment verification have to be cautiously undertaken.
• They communicate with the respective employment sectors. For example, they contact real estate companies and private brokers regarding a property loan. Or, they may contact car dealerships regarding car loans. They may even contact the university or educational institution for student loans.
• In a nutshell, a loan processor determines the applicant details with regards to a myriad of factors (salary, assets, liabilities, etc.), verifies information, prepares documents, and assures efficient completion of the loan application process.

• Generally speaking, to become a loan processor, one may require only a high school diploma. However, it is always beneficial to pursue a related bachelor’s degree.
• You are required to have an extensive knowledge regarding loans, mortgages, and other similar procedures.
• There are many certifications you can undertake as well. This will give you preference over other aspirants.
• Besides, you will need to pay a lot of attention to detail and be patient while dealing with your clients.

• According to the BLS, the salary for loan officers falls approximately between USD 29,000 and USD 44,000.
• The salary range in a majority of the states has been observed to fluctuate between USD 30,000 and USD 45,000.

Work Environment

• As a loan processor, you will mostly work regular hours.
• Sometimes though, if your clients are involved in securing loans and may face complications, you might have to work longer hours.
• With a loyal clientèle and excellent customer service, you may be assigned many other responsibilities and be promoted to higher positions.
• Different guidelines need to be followed while working for banks, private consultancies, and other financial institutions.
• A fairly decent job growth rate is predicted for this sector – this involves loan processors, underwriters, loan officers, etc.

Working in the financial sector, especially with mortgages, is always tedious. While a loan processor’s job may not be very hectic, it needs to be handled very carefully due to the involvement of a huge amount of money.