Commercial Loan Processor Training

There are three general ways to look at commercial loan processing: processing residential loans in bulk as a commercial entity, processing loans for purchasing or refinancing commercial property, or processing commercial loans for business as start-up capital or for equipment purchasing. Either way, the business of commercial loan processing can be a lucrative field if you know where to get training and how to get your foot in the door.

Function of a Commercial Loan Processor

Commercial loan processors review credit reports, available collateral, income and additional documentation as required, including personal financial statements. Real estate purchases may require the review of preliminary environmental reports, zoning maps, title reports, appraisals of the property and lease summaries.

Considerations in Loan Processing

The loan processor understands that the potential borrower may be comparing several price quotes to see what is being offered and who has the best interest rates. The loan package is then submitted to underwriting or a loan committee who decides whether the loan should be given. A loan officer will have the ultimate decision-making authority and be in most direct contact with a potential client, but the processor is the one who pipelines the information the loan officer relies on in order to make a qualified decision.

Types of Commercial Lending

Loans may be given for construction, development, rental properties, equipment, start-up capital, loc's (line-of-credit loans) or lot loans on vacant or developed property.

Places to Get Training

Traditionally, learning to be a loan processor was a matter of on-the-job training; there is never a better way to learn to do something than the hands-on approach. But if that is not an option, there are several training schools. Most are virtual campuses online where the learning environment is structured to put you in a live session to learn to work a loan from origination (processing the loan application) to closing the deal.

Time Frame and Certifications

There's no lengthy process or huge learning curve to learning to process loans. The length of time it takes to become a loan processor is minimal considering what there is to learn. Typically, it takes from three to 30 days, at most. It's a help to have prior knowledge and experience, but not an absolute requirement. At this time, there are no required licenses or certifications to become a commercial loan processor.

Incentives

Often, there is no ceiling on earnings. Loan processors, like loan officers, get paid a base salary and often earn bonuses for production. Loan officers get base plus commission for a sale or deal that goes through. True enough, there is the danger of becoming a paper mill and compromising integrity for the bottom line (see American Mortgage and Credit Crisis 101), but if you are committed to gaining a reputation as someone who will chance missing a bonus rather than compromising the integrity of your processing skills, the chance of throwing good money after bad are nearly nil. Also, it's a ramp up to becoming a loan officer, where the sky is the limit on income.

Significance

Only your attitude will determine if this is the right field for you. It may be "just a job with decent pay" or you may see yourself as an economist who would like to work closely with the way commercial paper moves in the banking and lending systems of the world. It's up to you.

Resources

• Factors of finance in commercial lending
• Loan processor training online
• Finding work as a commercial loan processor