Position Description of a Loan Processor
A loan processor can work in different places such as mortgage, commercial and consumer loan departments in banking institutions and finance companies. Even though the choices of employment are different, there are core responsibilities and duties that all loan processors perform. Based on what industry they are employed in, loan processors are given alternate titles such as mortgage loan processor, credit systems processor and financial loan officer.
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Duties
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A loan officer compiles and verifies information from a customer seeking a loan. The loan officer reviews the customer’s application to ensure completeness and that it meets the standard requirement for processing according to the organization’s standard for processing loans. The loan processor also calls, writes or emails a credit bureau to obtain a credit report with the customer's credit score for pre-qualification purposes. If the qualifications are met, the loan processor ensures that all necessary paperwork is forwarded to a loan officer or loan review committee for approval. The loan processor also processes approval or denial letters to the applicant.
Skills
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A loan processor must have very good oral and written communication skills and possess an understanding of his responsibilities to the organization regarding loan requirements and to the applicant. The loan processor must also explain the applicant’s rights and responsibilities during the application process.
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Educational Requirements
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The requirements for a general loan processor are an associate’s or bachelor’s degree in business or finance. However, in some industries, extra certifications may be needed. The requirements of becoming a mortgage loan processor vary from state to state. For example, Colorado requires a that an individual must take certified educational courses which are approved by the applicable state real estate commission and must pass a certification test to become a mortgage loan processor.
Salary
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According to Payscale.com, as of June, the average median hourly wage for a loan processor, with five to nine years of experience is between $12.81 to $16.71 per hour. Within a 10-year to 20-year experience range, most loan processors are paid an annual salary between $27,748 to $41,772.
Employment Outlook
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The Occupational Outlook Handbook, 2010-11 Edition notes a four percent growth rate for loan processors until 2018. The demand for loan processors will start to grow at a faster rate as more people seek to finance mortgages and other commodities. In a down economy, chances of finding a position as a loan processor are fair to moderate.
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References
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