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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