What Do Loan Processors Do?
- Loan Processor Job Description
- Loan Processor Salary
- Loan Processor Education Requirements
- Loan Processor Skills
- Loan Processor Job Outlook
Loan processors are responsible for collecting and verifying the documentation needed to approve a loan .
They work closely with loan officers, borrowers, and underwriters to ensure that all parties understand the loan requirements and that the loan is processed quickly and efficiently.
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Loan Processor Job Description
Loan processors are responsible for collecting and verifying documentation needed to process a loan application. This may include employment history, credit report, and tax returns. They also calculate the borrower’s debt-to-income ratio and assess their risk level. Loan processors work closely with loan officers and underwriters to make sure all information is accurate and complete before approving a loan.
Verifies and collects loan application information
Loan processors are responsible for verifying and collecting loan application information, as well as maintaining constant communication with both the borrower and loan originator. In order to be effective, loan processors must be highly organized and detail oriented.
The loan processor job description generally includes the following duties:
-Verifying and collecting loan application information
-Maintaining communication with the borrower and loan originator
-Organizing and preparing loan documents for submission
-Reviewing loan applications for accuracy and completeness
-Requesting additional information from borrowers as needed
-Coordinating with underwriters to obtain necessary approvals
-Preparing loan closing documents
-Ensuring that all conditions of the loan are met prior to disbursement
Runs credit reports
Loan processors usually work in the loan department of a bank, credit union, or mortgage company. The specifics of the job vary depending on the size and type of the employer, but loan processors typically have a few main responsibilities:
-Gather and verify documentation from loan applicants
-Enter data into a loan origination system (LOS) or other computer program
-Calculate income and assets
-Run credit reports
-Request further information from applicants, as needed
-Prepare loan packages for underwriting
-Communicate with underwriters, borrowers, and loan officers throughout the process
Loan processors typically perform a variety of tasks to obtain and verify the information needed to process a loan. Depending on their specific title and the company they work for, processors may find themselves responsible for ordering appraisals, pulling credit reports, verifying employment and tax documents, and requesting any additional documentation required by the underwriter. In some cases, processors may also serve as a liaison between the borrower and the underwriter, answering questions and addressing concerns as they arise.
To calculate a borrower’s income, loan processors review the borrower’s pay stubs and tax returns. They use this information to verify employment and to determine whether the borrower has the ability to repay the loan.
Loan Processor Salary
Loan processors are responsible for collecting and evaluating a borrower’s information in order to determine their eligibility for a loan. They typically work in the lending or financial industry and may be employed by banks, credit unions, or other financial institutions. Loan processors typically have a high school diploma, although some jobs may require postsecondary education, and most loan processors receive on-the-job training. The median annual salary for loan processors was $32,780 in May 2019.
According to the U.S. Bureau of Labor Statistics, the median salary for loan processors in 2018 was $63,040 per year. The lowest 10 percent of earners made less than $33,950, while the highest 10 percent made more than $99,800. Salaries vary by state, with loan processors in California and New York earning the highest wages, on average.
Just like any other occupation, loan processors get paid based on their level of experience. Here is a rough guide of what you can expect to earn as a loan processor:
-Entry-level: $30,000-$40,000 per year
-Mid-level: $40,000-$50,000 per year
-Senior-level: $50,000-$60,000 per year
-Executive-level: $60,000-$100,000 per year
Here is a list of average salaries for loan processors in different U.S. states, according to Indeed.com as of July 2019:
-District of Columbia: $56,144
Kansas::$ 38 048 Kentucky::$ 39 544 Louisiana::$ 38 205 Maine::$ 43 790 Maryland::$ 50 720 Massachusetts::$ 54 167 Michigan::$ 42 874 Minnesota::$ 45 960 Mississippi::$ 37 071 Missouri::$ 39 870 Montana::43 542 Nebraska ::$ 34 420 Nevada ::47 274 New Hampshire ::53 068 New Jersey ::53 714 New Mexico :39 993 New York :51 909 North Carolina :40 346 North Dakota 41 211 Ohio :41 382 Oklahoma :37 205 Oregon 48 404 Pennsylvania 47 211 Rhode Island 52 463 South Carolina 39 495 South Dakota 36 701 Tennessee 37 239 Texas 42 405 Utah 45 253 Vermont 50 863 Virginia 48 275 Washington 51 364 West Virginia 35 Howard Wisconsin 39 148 Wyoming 41 672
Loan Processor Education Requirements
A loan processor is a professional who interacts with both borrowers and lenders during the loan origination process. Loan processors are responsible for ensuring that all documentation in a loan file is complete and meets guidelines, verifying borrower information, and sending complete loan packages to lenders for approval. Loan processors typically work in the financial industry and have a background in customer service. Some loan processors may also be responsible for underwriting loans.
High school diploma or equivalent
Most loan processors have at least a high school diploma or equivalent, although some jobs may require postsecondary education, and most loan processors receive on-the-job training. Those who process loans for commercial real estate or construction projects may need experience in the field of real estate or construction. Many community colleges offer courses in loan processing, and some loan processors complete certification programs offered by professional organizations.
Most loan processors have at least some post-secondary education, although this is not always required. Many have completed a certificate or diploma program in business administration, finance or a related field. Some have also completed a bachelor’s degree program in business administration, finance or a related field.
Loan Processor Skills
Loan processors are responsible for a number of tasks throughout the loan process, from verifying documentation to ordering appraisals. But what exactly do loan processors do? And what skills do they need to be successful? In this article, we’ll take a closer look at the loan processor job description and the skills needed to excel in this role.
Strong communication skills are critical for loan processors, as they often have to relay complex financial information to customers and clients. They must be able to understand the needs of their customers and explain loan options in simple terms. Loan processors also need to be able to negotiate with third parties, such as lenders, real estate agents, and appraisers.
Loan processors must be highly organized, paying close attention to detail in order to avoid mistakes that could delay or derail a loan. They must also be able to multitask, often working on multiple loans at the same time while meeting deadlines.
One of the most important skills for loan processors is math. They need to be able to calculate interest rates, payments, and other financial data. They also need to be able to understand complex financial documents.
Good communication skills are another important asset for loan processors. They need to be able to explain loan terms and conditions to borrowers, and answer any questions they may have. They also need to be able to communicate with underwriters, loan officers, and other members of the loan team.
Organizational skills are also essential for loan processors. They need to be able track multiple loans at once and ensure that all deadlines are met. They also need to be able maintain accurate records and file documentation properly.
One of the most important loan processor skills is the ability to use a computer. Mortgage processors must be able to type quickly and accurately, have strong data entry skills, and be proficient in using Microsoft Office programs such as Excel and Word. Many loan processing jobs require experience with mortgage industry software programs such as Encompass, loan origination systems (LOS), andDocVerify.
Loan Processor Job Outlook
Loan processors work in the mortgage industry and are responsible for handling loan applications, reviewing credit reports, and verifying income and employment. The job outlook for loan processors is positive, with a projected 9% growth in employment from 2019 to 2029.
Overall job outlook
Employment of loan processors is projected to grow 3 percent from 2019 to 2029, about as fast as the average for all occupations. The demand for loan processing services will continue as long as people borrow money to buy homes and cars.
As home prices and the number of purchases rise, demand for loan processors will increase. In addition, more loans are expected to be processed electronically, which is not only more efficient but also allows processors to work on multiple loans at the same time.
Competition for jobs should be strong because many people are interested in working in the mortgage industry and are willing to take jobs as loan processors.
Job outlook by state
The job outlook for loan processors varies by state. For example, in California the outlook is good, with an expected 12 percent growth in jobs from 2016 to 2026. In Texas, the outlook is even better, with a projected 15 percent growth in jobs during that same time period.