Loan Processor Job Description: Top Duties and Qualifications

Last updated: August 22, 2022

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
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Loan Processor Job Description Examples

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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