Loan Processor Career Profile
Loan Processors (LPs) are also known as loan interviewers and usually work for banks, real estate agencies, mortgage firms or other financial institutions. Their duty is to process, package loan applications and maintain critical documents. Many work for mortgage home loans but there are others who work specifically for automobile, or other types of loans. They are responsible for keeping track of loans for their customers and manage them until the loan closes.
- They should assist their clients to select the best loan products according to their needs and requirements.
- They must have the ability and integrity to clearly convey the details related to rights and responsibilities of the particular loan.
- Determine whether the loan applicant is qualified to get a loan for himself, as per federal laws and his employer's policies and standard procedures.
Typical Processing Steps
- The LP should first check the credit report of the potential borrower.
- Interview and check their source of income.
- Check the financial statement, lease summaries and other mandatory documents for their accuracy and completeness.
- Should critically analyze and interpret the application material and determine whether loan application should be approved or denied.
- Submits the report based on your detailed analysis about the borrower to the loan approval committee in your organization.
- Helps in the closing of loan application that is to say, after the approval of a loan, the loan amount has to be released to the client as soon as possible.
- LPs should also be engaged in things like making follow-up calls, filing documents, copying or faxing the documents related to the received loan application as the situation requests.
- People with a bachelor or an associate's degree in finance, banking or business administration, accounting or economics are given preference. It will suffice for LPs to only have a high school diploma, as most of them are given on-the-job training and have an opportunity to be promoted from within the organization.
- If you possess qualities like critical analysis of data, visible but constrained motivation, excellent communication skills, the affable nature to work with clients of a varied caliber and multi-tasking abilities, then you should be promoted quickly.
- Expertise, not just a degree, in accounting or finance is an added advantage.
- Knowledge about loan processing, automated underwriting systems and computer software is also preferred.
- No license required for LPs working with banks or credit unions but if they work for a mortgage agency, they made need to acquire a license depending on the state they reside in.
The median annual income for LPs was $32,680 in May, 2006. Those with enough experience can be earning up to $40,930. Within their respected organizations, processors are promoted to a higher level inside the company hierarchy.
According to the Bureau of Labor Statistics, the growth of loan processors is predicted to decline largely. The reason cited for this decrease in growth is increased usage of technology for the automation of most of the loan processing procedures. So even white collar positions, like blue collar ones, are facing stiff competition from the likes of state of the art technology.