What Does a Mortgage Loan Processor Do?
Contents
A mortgage loan processor is responsible for collecting and verifying the documentation needed to secure a mortgage.
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Mortgage Loan Processor Job Description
The Mortgage Loan Processor is responsible for providing quality customer service by obtaining necessary documentation to underwrite the loan and ordering third party services to complete the transaction.
Duties
• Reviews loan application and supporting documentation provided by borrower
• Verifies that loan meets all bank, state, and federal requirements
• Orders credit report, property appraisal, and title insurance
• Reviews credit report and property appraisal
• Works with Loan Officer to clear any loan conditions
• Prepares loan documents for closing
• Attends closing to ensure accuracy of loan documents
Mortgage Loan Processor Salary
The median annual mortgage loan processor salary is $61,067, which is a 26 percent increase from 2012, according to Payscale.com. Loan processors make a median hourly wage of $19.82. The top earners in the field bring in more than $100,000 annually.
A loan processor’s duties vary by employer, but the job usually involves collecting and verifying a borrower’s financial information; preparing loan documents; and ensuring that the loan meets the guidelines of the lender, investor, and government regulations. Some loan processors also calculate income and debt ratios and monitor loans throughout the closing process. They may also review appraisals and title reports.
Loan processors typically need at least a high school diploma, although some jobs may require postsecondary education, and they must have strong math skills and experience with computers. Many employers prefer to hire loan processors who have a certificate or degree in business administration or a related field, as well as experience working in the financial industry. Some positions may require certification from organizations such as the National Association of Mortgage Processors or The Institute of Financial Operations.
Mortgage Loan Processor Skills
A mortgage loan processor is responsible for collecting and verifying the required documentation for a home loan application. This position is typically found in a bank or other financial institution, but may also work for a mortgage broker. In either case, the loan processor works closely with the loan originator (loan officer) to ensure that the application is complete and meets all of the necessary requirements.
The skills required for this position include strong communication and organizational skills, as well as the ability to pay close attention to detail. Mortgage loan processors must also have a good understanding of the different types of loans available and the underwriting guidelines of each. In some cases, mortgage loan processors may be responsible for ensuring that the loan meets all compliance standards set by federal and state laws.
Mortgage Loan Processor Education
Mortgage loan processors usually need at least some college education, and many have a bachelor’s degree. Some colleges offer programs in mortgage banking, which can help prepare students for this career. Courses in business, accounting, and finance also can be helpful.
Most importantly, mortgage loan processors need to have excellent communication and customer service skills. They must be able to clearly explain complex information to loan applicants. They also must be able to work well under pressure and meet deadlines.
Mortgage Loan Processor Job Outlook
Mortgage loan processor jobs are expected to grow by 11% from 2018 to 2028, faster than the average for all occupations, according to the U.S. Bureau of Labor Statistics. The median annual salary for mortgage loan processors was $50,410 in May 2019.
As the housing market continues to improve, more people will be buying and refinancing homes, which will lead to an increase in demand for mortgage loan processors. Job prospects should be best for those with experience in the industry and a solid understanding of the mortgage loan process.
