Loan Processor Job Description: Top Duties and Qualifications

A Loan Processor, or Mortgage Processor, is in charge of gathering the necessary paperwork and documentation required for someone to apply for a loan. Their duties include carefully reviewing mortgage applications to confirm that all essential fields have been filled out, organizing additional application materials and submitting applications on schedule.

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Loan Processor duties and responsibilities

The Loan Processor has several duties and responsibilities, such as:

  • Gathering information for the loan application
  • Evaluating credit histories for applications
  • Collecting data from clients such as their assets, salaries, debts and employment status to fill in information for the loan application
  • Researching and correcting mistakes in applications for clients
  • Reviewing file documentation for missing or erroneous information 
  • Meeting loan application deadlines 
  • Assisting Loan Officer with requests and tasks needed to complete and process applications

Loan Processor Job Description Examples

 

Example 1

The Mortgage Loan Processor takes ownership of residential mortgage loan files after Origination and works to fulfill the requirements to advance them to Closing. This includes obtaining, reviewing, and assembling documentation, along with preparing and submitting files. Loan Processors work closely with Customers, Loan Officers, and both internal and external partners providing a high level of service in a professional manner. * Review new files within 48 hours of receipt and verify that compliance documents were issued within the required time frame. * Prioritize and monitor daily workflow in order to ensure all loans are being worked on in accordance with company's timeline expectations. * Maintain constant communication with customers and loan agents on status updates and/or changes to the loan. * Ensure any necessary and critical changes which require redisclose have been accurately notated and checked in the loan origination system (Encompass) for compliance purposes. * Serve as the representative to the mortgage team and be available to all parties throughout the process. * Rectify issues and look into any red flags * Notify the appropriate staff member if additional documentation or information is needed. * Maintain a pipeline of 25 or more loan files * Gather and submit post-closing documentation * Order all necessary documents to satisfy AUS findings, investor and agency requirements. * Verify, Review and track all requested documents in Encompass. * Review documentation received within 24 hours of receipt and follow up in the event of discrepancies or omitted data. During documentation review, if any discrepancies are identified immediately notify Loan Originator or appropriate team members. * Use documentation to perform functions, such as calculating verified income or verifying assets, and update Encompass accordingly. * Review, organize and prepare loans for underwriting submission. * Clear any approval or suspense conditions as outlined by the underwriter, or closer. * Ensure that all appropriate closing documentation is in the loan file (i.e. title documentation, homeowners’ insurance & third-party invoices). Documents are to be reviewed within 24 hours of receipt and communicated with Loan Originators. * Loans are to be processed to meet purchase contract deadlines and rate lock expiration dates. * File submitted to closing department upon obtaining the CTC – approval milestone. * Assist other processors, Underwriters and Closing departments as needed. * Respond to customer inquiries and other related parties on a transaction as determined by Loan Originator. * Assist with the clearing of post-closing conditions received to avoid any financial loss. * Knowledge of current state's regulatory lending laws and requirements. * Maintain a focus on enhancing customer service skills and knowledge. * Ensure KPI’s are met set forth by the branch manager or corporate processing manager. * Maintain quality and data integrity of all loan files. * Able to comply with the policies and procedures outlined in the Company Handbook * Perform other duties as assigned. Ideal Background * 1+ years of mortgage processing * Understanding of mortgage industry federal regulation including RESPA, TILA, ECOA, TRID, CFPB, etc. * Thorough knowledge of underwriting process and agency/investor requirements * Experience with industry technology (DU, LP, Encompass, CRM, etc.) * Strong communicator with excellent writing skills * High integrity with strong ethical values * Team player with ability to work effectively with a variety of team members Benefits * Salary plus bonuses * Bonus paid for maintaining closing loans * Medical, Dental, and Vision insurance plans * PC laptop * Lifetime Gym Membership Job Type: Full-time Pay: $80,000.00 - $125,000.00 per year Benefits: * Dental insurance * Health insurance * Life insurance * Paid time off * Vision insurance Physical Setting: * Office Schedule: * 10 hour shift * 8 hour shift * Monday to Friday * Weekend availability Supplemental Pay: * Commission pay Education: * High school or equivalent (Preferred) Experience: * Loan processing: 1 year (Required) Work Location: One location

Example 2

If you're looking for a team-based and family-oriented company with a work-life balance culture and want an opportunity to change a job into a career, then this is the place for you! *Qualifications: * * 1 year of experience related to mortgage loan set up or processing * Have a solid working knowledge of new CFPB TRID Regulatory guidelines, loan disclosures along with fee tolerances * Above Average computer skills and working knowledge of Microsoft Office products * Calyx Point, DataTrac, ProLender experience preferred * Communicate effectively both verbally and in writing * Ability to multitask * Ability to organize and prioritize workload and meet deadlines * High School diploma or equivalent *Basic Responsibilities: * * Set up loans via data entry * Sending out initial loan disclosures (LE) * Excellent keyboard skills * Validate fees disclosed on Loan Estimate and Closing Disclosure and/or Fees Worksheet. * Responsible for the entire setup process of the loan file to include RESPA disclosures * Responsible for re-disclosing when the loan has a qualifying change of circumstance. * Prepares and sends 3-day initial disclosures (i.e. Loan Estimate, Service provider List. Etc…) on wholesale loans. * Ensure that all loan documentation is complete, accurate, verified and complies with company policy and Federal and State regulations. * Ensure that the file passes all compliance before it’s submitted to Underwriting. * Review received information for accuracy and completeness Job Type: Full-time Pay: $22.00 - $25.00 per hour Job Type: Full-time Pay: $21.00 - $25.00 per hour Benefits: * 401(k) * 401(k) matching * Dental insurance * Health insurance * Life insurance * Paid time off * Retirement plan * Vision insurance Schedule: * Monday to Friday Ability to * Tampa, FL: Reliably commute or planning to relocate before starting work (Required) Application Question(s): * Willing to work in office? Education: * High school or equivalent (Preferred) Experience: * Fair Housing Regulations: 1 year (Preferred) * Loan Processing: 1 year (Required) Work Location: One location

Example 3

The Agency Loan Processor (“Processor”) is charged with supporting underwriters with the processing of Fannie Mae and Freddie Mac loans from loan application to closing. The Processor will work closely with other members of Bellwether Enterprises’ (“BWE”) Agency Production Group including producers, underwriters and closing personnel to process Fannie Mae and Freddie Mac transactions. The incumbent will be the primary source and contact with customers for coordinating and inventorying due diligence information necessary for Agency financings. The Processor serves as a liaison between all internal and external transaction participants, and must work with a strong sense of urgency to assist in moving transactions through the underwriting pipeline. Occasional travel may be required to assist with property inspections or to participate in off-site training. *Primary JOB Functions: * · Set up and maintain electronic deal files in accordance with BWE policies. · Organize and participate in conference calls for all assigned transactions. · Track and coordinate the collection of due diligence items from borrowers in accordance with Agency guidelines. · Review materials provided by borrowers and discuss any missing information with underwriter. · Order, track and provide preliminary review of third party specialist reports. · Order, review and discuss credit report(s), zoning report and flood certificate with underwriter. · Work with underwriter to keep BWE’s pipeline updated with the most current information available. · Track all transaction expenses and provide to closer in timely manner. · Assist with preparation of Agency submission materials for each assigned transaction. · Communicate quickly and accurately with BWE’s external partners including customers, attorneys, title agents and other parties as required to facilitate seamless execution. · Travel required less than 5%. *Qualifications: * · Must possess at least two years’ experience in mortgage loan processing or a commensurate field. · High school diploma or equivalent required. College degree a plus and may be used as a substitute for previous experience with mortgage loan processing. · Extensive PC skills including Microsoft Excel, Microsoft Word, PowerPoint, and Adobe Acrobat. · Ability to operate effectively in a team environment, and work independently. · Ability to meet deadlines and work in a fast-paced environment. · Ideal candidates will demonstrate a proven track record of managing multiple assignments at once · Excellent written and verbal communication skills. · Priority on attention to detail. · Previous Freddie Mac and Fannie Mae multifamily experience is a plus. Job Type: Full-time Pay: From $45,000.00 per year Schedule: * Monday to Friday Work Location: One location

What does a Loan Processor do?

Loan Processors work at banks and other financial lenders to act as a liaison between front-facing bank staff and the underwriters who research and approve loans. Their role is to make sure that loan applications are free of mistakes and include all of the essential information Underwriters need to perform a risk assessment and a background check, preventing errors from increasing turnaround time. Loan Processors act as a liaison between the Loan Officer and the Underwriter, double-checking lending guidelines and all essential prior-to-document conditions related to each loan document before and after approval.

Loan Processor skills and qualifications

Loan Processors should have a variety of practical skills for their position. The main skills and qualifications of a Loan Processor are:

  • Experience with mortgage loan software programs
  • Verbal and written communication
  • Good interpersonal and customer service skills
  • Time-management and organization skills
  • Ability to work with strict deadlines
  • Ability to explain technical concepts in simple terms
  • Ability to work in fast-paced environment
  • Willingness to learn new concepts to grow and advance

Loan Processor salary expectations

A Loan Processor makes an average of $47,341 per year. Salary may depend on level of experience, education and the geographical location.

Loan Processor education and training requirements

The minimum educational requirement for Loan Processors is a high school diploma or GED. Some employers prefer to hire Loan Processor candidates who have an associate degree in finance. A bachelor’s degree in finance or economics is important for those who want more experience and better career prospects as a Loan Processor. Certifications and training are available for Loan Processors, which can make them more attractive candidates. Those who hold a certification must be able to maintain it through continuing education. 

Loan Processor experience requirements

Entry-level Loan Processors should have a year of experience in banking or finance, preferably in a customer-facing role. Experience as a Teller or Customer Support Representative is ideal. Loan Processors who work with complicated or complex loan applications, such as commercial loans, need one to two years of experience. Senior-level Loan Processors and those in leadership roles need three to five years of experience. A bachelor’s degree can usually substitute for some experience at any level.

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Frequently asked questions about Loan Processors

 

What is the difference between a Loan Processor and a Loan Officer?

Loan Processors and Loan Officers both play an important role in preparing mortgages and other loan applications, but they work at different steps in the process. Loan Officers work a front-facing role where they find potential customers, meet with clients and discuss their needs, collecting initial information and personal documents. They help the client fill out the first portion of paperwork, then pass the file to the Loan Processor. The Loan Processor then acts as a failsafe by reviewing the documents and checking for any missing, incomplete or inaccurate details that they need to clarify with the Loan Officer.

 

What are the qualities of a good Loan Processor?

The most important characteristic of a Loan Processor is having strong attention to detail so that they can process complex financial paperwork with efficiency and accuracy. Good Loan Processors are able to can applications and immediately spot mistakes and missing information. They notice when information looks out of place or when certain documents are missing from a client’s file so that they can track down the correct details and documents. Successful Loan Processors have the patience and focus to spend hours reading paperwork and comparing it against screening standards and financial guidelines.

 

What are the daily duties of a Loan Processor?

Once a Loan Processor receives a file from a Loan Officer, they begin by organizing their file and noting any missing documentation. They track down employment verification details, bills, bank statements and identification information. Loan Processors might contact lawyers and clerks to track down additional details that are essential for processing the loan application. They communicate with the Loan Officer about additional missing information before proofreading the final forms and sending them to the Underwriter. At the end of the process, Loan Processors review the loan contract for errors and noncompliance issues.

 

What should you look for on a resume?

When reviewing a Loan Processor’s resume, look for experience in finance, accounting or real estate. Loan Processors can receive on-the-job training to help them learn how to proofread financial documents, but familiarity with industry best practices can help them adapt to their role more quickly and maintain a high standard of conduct. A Loan Processor’s resume should emphasize their time management skills and ability to multitask by managing the timelines and organizing the documents of multiple projects at once.

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