How to Become a Retail Mortgage Processor

A mortgage loan processor has a very important job. Good processors are sought after, especially when the loan business experiences busy times. Although the job of a mortgage loan processor is relatively simple, it can be tedious and overwhelming. For this reason, these positions pay very well. Some markets see processors making well into the six figures. If you want to become a processor, it is important to know as much as you can before going into an interview. Most lenders and brokers only hire processors with experience. However, if you know what the position entails and are willing to learn, and if you learn quickly, you will do much better than you would if you go into the industry blindly. It is also beneficial if you have contacts in the mortgage industry.

Difficulty: Moderate

Instructions

Things You'll Need:

• Real estate dictionary
• Business calculator
• Willingness to learn
• Computer and typing skills

How to Become a Retail Mortgage Processor

1. Be familiar with real estate loans. If you come from an industry outside of consumer finance, it is wise to study all you can about how real estate loans work. Although much of your job as a processor will contain hands-on learning, you will need to know the basics very quickly. You will not simply be an administrative assistant. The work of a processor often determines whether a loan closes on time or not. There are numerous books and online tutorials that teach the basics of real estate finance. If you have a solid understanding going into your position, you won't need to be trained from scratch. Note: Most loan officers do not enjoy processing their own loans. Loan officers make money by finding customers, signing them up and closing their loans. Your loan officers will depend on you to process their loans from the behind the scenes.

2. Know what the job entails before your interview. As a processor, you will be responsible for gathering the necessary documents for a mortgage applicant once they sign the initial application. Your job is to build the loan file and prepare it for underwriting. This includes, but is not necessarily limited to, obtaining title insurance, ordering real estate appraisals, calculating customers' monthly income, ordering home appraisals, maintaining mortgage loan computer software, taking customer applications and working closely with underwriting departments. You may also be required to obtain customer credit reports and run the office.

3. Be willing to start at the bottom. Experienced processors have earned the right to demand high pay. However, if you are just breaking into the business, it is likely that you won't be offered a compensation plan near the top of the scale. Depending on your market, loan processors typically start out making salaries of around $20,000 to $25,000 per year. If you do your job well and learn the business, you will find it financially rewarding and will likely experience pay raises. It is not uncommon for good processors to be paid a bonus for every loan closed in addition to their regular salaries.

4. Always ask about the experience of the firm's loan officers before you start. You will only be as successful as the loan officers that are bringing in business. If you land a job with a bank or brokerage with loan officers that are not efficient, you will find yourself very frustrated. You will either be without any loans to work on or will be stuck wrestling with very difficult transactions that almost never find their ways to the closing table. Note: Be prepared to take the blame for problems that arise. Inexperienced loan officers tend to want to blame their processors when things go wrong. It is, therefore, wise to begin your career as a processor working for loan officers that know how to find and close solid deals. You will know who the good ones are and which ones to stay away from.

Tips & Warnings

• Aim high. The best way to learn how to be a good mortgage processor is to work for serious professionals.
• Never go to work for a lender or broker that is not fully licensed. As a processor, you will be required to sign specific documents as a representative of the firm. Never sign a document you are not familiar with or do not understand why it requires your signature.