Job Description of a Loan Closer
A loan closer works for a financial institution that engages in lending activities—such as loans, bonds and convertible bonds—in private transactions or on public securities exchanges. He may work for a mortgage lender, an insurance company or a hedge fund. A loan closer generally has a bachelor's degree in a finance-related field.
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Nature of the Work
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A loan closer ensures that a borrower and a lender abide by regulatory rules when signing loan documents. For instance, she reviews loan application forms, and she verifies conformity to Federal Housing Administration, or FHA, rules and requirements. A loan closer also reviews loan terms with title companies, and he provides corrective recommendations for potential closing issues. He also appraises business partners' financial information, and he detects credit risk (default) probabilities.
Education and Training
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A loan closer generally has a bachelor's degree in accounting, finance, business management or investment analysis. If she has major supervisory duties within a firm, she usually holds a master's degree in finance or accounting. A loan closer attends training courses to stay up-to-date with mortgage compliance requirements and lending directives that state and federal regulators occasionally establish. A loan closer with prior public accounting experience holds a certified public accountant, or CPA, license.
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Wages
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A loan closer's compensation depends on the company's size, industry and transaction amounts. A loan closer receives a higher remuneration if he has an advanced professional certification or academic degree. The U.S. Labor Department’s surveys show that loan closers earned median wages of $54,700 in 2008, excluding annual stock and cash bonuses, with the lowest 10 percent of the profession earning less than $30,850 and the top 10 percent earning more than $106,360. The same polls indicate that the middle 50 percent of the occupation earned from $39,710 to $76,860, excluding annual stock and cash bonuses.
Career Development
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A loan closer can take training courses to learn new skills and improve his performance and productivity. A professional certification such as CPA or certified financial manager, or CFM, also can be a career booster. A skilled and effective loan closer moves to a senior function, such as loan processing manager, senior loan closer or loan manager, in a few years.
Working Conditions
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A loan closer's work schedule depends on business needs, but a standard 8.30 a.m. to 5.30 p.m. shift is the norm for junior loan closers. A loan closer with major responsibilities usually works longer hours, especially at the end of the month or quarter when a company prepares regulatory filings with the Securities and Exchange Commission (SEC) or the Internal Revenue Service (IRS).
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References
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