What Is a Loan Processor?

A loan processor is a professional who prepares and submits loan applications to lenders on behalf of borrowers.

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Introduction

A loan processor is a type of financial professional who is responsible for verifying and approving loan applications. Loan processors work in a variety of settings, including banks, mortgage companies, and credit unions.

The loan processor’s job is to gather all of the necessary documentation from the borrower, including tax returns, pay stubs, and bank statements. The loan processor then verifies the accuracy of this information and forwards it to the underwriter for approval.

Once the loan has been approved by the underwriter, the loan processor will work with the borrower to finalize the terms of the loan and get all of the necessary paperwork in order. The loan processor then sends the package to the closing agent to be signed by the borrower.

Loan processors generally require at least a high school diploma, although some employers may prefer candidates who have completed some postsecondary coursework in business or finance. Most loan processors undergo on-the-job training that lasts for several weeks or months.

The Loan Processor’s Role

Loan processors working in residential lending handle the paperwork involved in applications for home mortgages and home equity loans. A loan processor reviews an applicant’s documentation to verify that the information provided is complete and meets the requirements of the lending institution. The processor also calculates income, asset and liability information to determine whether the applicant qualifies for a loan.

If an applicant does not meet all of the requirements, the loan processor may request additional information or refer the file to a loan underwriter for further review. If an applicant meets all of the requirements, the loan processor forwards the file to a loan officer for approval.

Loan processors typically work in office settings during regular business hours. Some lenders allow loan processors to work remotely, but most require that they be available during business hours in case questions or problems arise. Loan processors typically work full time, but some lenders offer part-time or flexible schedules.

Loan Processor Duties

A loan processor is responsible for completing the application process for new Loan Originators. They collect the necessary documentation and run credit checks on the potentialOriginators. They also verify employment history and references. After completing these tasks, they submit the results to the loan officer for review. The loan processor may also be responsible for following up with the Originator after the loan has been funded to ensure that all conditions of the loan have been met.

Qualifications for Loan Processor

A loan processor is responsible for collecting and verifying the financial information needed to process a loan application. In order to qualify for this position, you will need at least a high school diploma or equivalent, although many employers prefer applicants with some college experience. You will also need strong computer skills, as most of the work is done using various computer programs. Excellent communication and interpersonal skills are also a must, as you will be dealing with customers on a daily basis.

Salary and Job Outlook

A loan processor’s median annual salary is $40,950, meaning half earn more than this while half earn less. The best-paid quarter of loan processors earn $51,870 or more annually, while the lowest-paid quarter make $33,270 or less. Their salaries are typically determined by education, experience and the type of employer.

Loan processors with several years of experience in the field and who work for larger banks or mortgage companies tend to earn higher salaries than those who are just starting out or who work for smaller organizations. In some cases, loan processors may be eligible for commissions based on the Volume of loans they process. Job growth for loan processors is expected to be about 7 percent from 2018 to 2028, according to the U.S. Bureau of Labor Statistics (BLS).