When somebody requests a loan, loan processors receive their information and application. Mortgage applications must be processed by loan processors to be ready for review by the mortgage underwriter. Loan processors compile all the paperwork needed to be approved for the loan, such as bank statements, monthly bills, proof of income, and, if relevant, employment data. They then arrange the data in the client’s file so that the underwriter can find it easily. Other obligations include:
- Assembling and organizing the necessary paperwork, then placing it in a file to be sent to the underwriter
- Ensuring that the underwriter’s requirements are met
- Corresponding with the title firm, the county clerk, the court, and other specialists as necessary
- Ensuring that the approval complies with lending requirements
Average income
The recruiting organization, its location, its current hiring budget, and the precise job requirements all affect the loan processor’s pay.
- A typical American wage is $45,316 per year.
- Some incomes are between $39,284 and $80,909 annually.
Loan processor requirements
You’ll require a mixture of the following to work as a loan processor:
Education
Although a bachelor’s degree in finance or accounting is preferred by many jobs, a high school diploma or GED is still necessary. Some companies will take into account an associate’s or bachelor’s degree in a similar subject, such as real estate or business administration. There are certificate programs in loan processing that address topics like credit counseling, fraud detection, fundamental appraisal principles, the approval procedure, and underwriting principles.
Training
Loan processors typically receives their training on the job. You can pursue your bachelor’s degree while working in this capacity. If you choose to pursue this career path, you will get practical experience that will help you advance in other facets of mortgage loan processing.
Certifications
Although not necessary to become a loan processor, the below certification programs can aid in your understanding of the position while teaching you priceless practical knowledge. The National Association of Mortgage Processors administers the certification process, and there are three levels of certification available:
Purple Processor certified
A Certified Purple Processor is the initial tier of certification. Loan processors must finish at least six hours of basic loan processing training and six hours of advanced loan processing training to receive a CPP. Candidates must obtain a minimum score of 85% on the CPP exam, and they must also pass a background investigation.
Master Loan Processor Certified
The Certified Master Loan Processor credential is the next step up. The loan processor must complete at least 24 hours of training divided into the following four categories to receive this certification: There are four different levels of loan processing: basic, advanced, underwriting fundamentals and FHA processing, and veteran’s affairs (VA) loans. Like the CPP, a CMLP certification requires a minimum score of 85% to pass, and applicants must submit to a background investigation.
Certified Ambassador Loan Processor
The Certified Ambassador Loan Processor credential is the top level of certification. The FHA’s special rehab program, tax return analysis, mortgage fraud recognition, and prevention, as well as all four topics included on the CMLP exam, must be covered in at least 42 hours of training for the loan processor to acquire this certification. Similar to other certifications, a CALP certification requires a minimum score of 85% to pass, and applicants must submit to a background investigation.
While a loan processor certification is not always required to become a loan processor, it can help demonstrate your knowledge and skills to potential employers. Here are some of the most popular loan processor certifications:
- Certified Mortgage Processor (NAMP)
The Certified Mortgage Processor (NAMP) certification is offered by the National Association of Mortgage Processors. This certification is designed to provide loan processors with the knowledge and skills necessary to process mortgage loans. To obtain this certification, you must complete a 24-hour online training course and pass an exam.
- Certified Loan Processor (CLP)
The Certified Loan Processor (CLP) certification is offered by the National Association of Certified Loan Processors. This certification is designed to provide loan processors with the knowledge and skills necessary to process various types of loans. To obtain this certification, you must complete a 70-hour online training course and pass an exam.
- Certified Residential Underwriter (CRU)
The Certified Residential Underwriter (CRU) certification is offered by the National Association of Mortgage Underwriters. While this certification is not specifically designed for loan processors, it can help demonstrate your knowledge and skills in underwriting and processing mortgage loans. To obtain this certification, you must complete a 24-hour online training course and pass an exam.
Skills
Attention to detail is a necessary quality for loan processors. You’re responsible for acquiring and organizing customer information for the underwriter. You will also require a mix of the following abilities:
Organization
Organized and meticulous, loan processors excel in their work. You should maintain all the necessary papers in one place because you might deal with several clients in one day. You will also be responsible for monitoring the loan timeline to make sure everything is proceeding as planned. Possessing this expertise from prior work-related experience can make you look highly good to prospective employers.
Communication
Loan processors deal with consumers and their paperwork all day long, so they must have great written and verbal communication skills. This ability is essential to the role and must be demonstrated through a carefully designed CV and cover letter. It can also be helpful to have some experience with customer service, even if it was just from your high school job in retail.
For instance, you may say in the section on job tasks, “Assisted customers in selecting the best products for their requirements and won employee of the month for my outstanding customer service skills.”
Data input and attention to detail
In a job processing loans, you’ll spend a lot of time on the computer, so learning the fundamentals of data entry will be beneficial. Additionally, you will have to be meticulous because you will be reviewing applications to ensure that all the information is precise and full before submitting them to the underwriter.
Working conditions for loan processors
Loan processors may work for banks, brokerage businesses, real estate agencies, mortgage lenders, or other financial institutions. On any given day, a loan processor’s workplace may be hectic and demanding. As long as they are accessible to clients throughout the process, some loan processors can work from home offices.
Loan processors are available Monday through Friday during regular office hours. They frequently have the option to work on Saturdays even though they don’t usually. Because they collaborate with authorized loan officers and underwriters, they typically are unable to work for themselves.
How to work as a loan processor
A qualification is not necessary, but it can make you more attractive to potential employers. The correct education, training, and abilities are essential for becoming a loan processor. Your resume will benefit from having certain skills like being meticulous, extremely organized, providing exceptional customer service, having excellent communication skills, and technical proficiency in a variety of software programs:
1. Focus on education.
Although a high school diploma or GED is the minimum required, it would be advantageous to get a certificate from an authorized college to demonstrate advanced training. While attending college, you can have the chance to participate in an internship. Taking finance and real estate programs might impress potential employers and demonstrate your want to learn in the field.
Receive your high school diploma
A high school diploma or GED is frequently the minimal educational prerequisite for loan processors at businesses. You will have a strong foundation of knowledge to work in the sector after taking English and math classes. Office-skills training programs and computer classes are also beneficial.
Acquire a Degree
A suitable associate’s degree, such as one in banking or finance, is preferred by several firms when hiring new employees. A degree in banking teaches you the fundamentals of financial management and the function of banks in protecting liquid assets and offering financial services. You will study topics including banking legislation, lending customs, credit management, fraud detection, and automated processing systems in class.
2. Gain professional experience
The secret to making your resume unique is having relevant work experience. Your abilities will develop and you will be more prepared for this position if you have work experience in similar industries like real estate or finance.
Working in this job will also give you essential real-world experience and a better grasp of the loan approval procedure. If it demonstrates transferable abilities like being well-organized, detail-oriented, and offering exceptional customer service, further professional experience will be helpful.
Banks, credit unions, and mortgage lenders are some of your possible employers. As of 2020, the U.S. Bureau of Labor Statistics (BLS) reported that there were roughly 208,800 loan interviewers and clerks employed (www.bls.gov).
According to the BLS, there will be more opportunities for loan processors in 2020 as a result of the need for workers to check the accuracy of loan applications due to stringent lending requirements and laws. Employment opportunities could be slightly countered by the ongoing adoption of loan automation technology that streamlines processing. In 2021, you may anticipate making a median salary of $43,012.
3. Apply for Loan Processor Positions
Once you have the necessary education, skills, and experience, start applying for loan processor positions. Submit your resume and cover letter to potential employers and be prepared to go through the interview process. Emphasize your skills and experience in loan processing, as well as your attention to detail and communication skills.
4. Obtain Training on the Job
On-the-job training can be used to learn about specialist computer applications and good interpersonal interactions. Computers, recordkeeping, and information processing are essentially used in every lending decision. You’ll probably contact clients during the portion of your work that does not involve computers, so you’ll need to project a kind and professional approach.
5. Career development
If you want to advance in your work, acquiring one of the National Association of Mortgage Processors’ credentials will help your CV stand out. Your aptitude and possibility of success will be demonstrated to employers by your certification along with your job experience.
Moving laterally into different financial services sectors could help you enhance your career. A bachelor’s or master’s degree may be required for some positions. A bachelor’s degree may once more be necessary to advance to the position of senior loan processor after gaining sufficient experience. Finding a good bachelor’s degree transfer program should be possible if you already have an associate’s degree.
Is Processing Loans a Good Job?
The positions of loan officers, underwriters, and processors will continue to rise significantly in the foreseeable future, according to the U.S. Bureau of Labor Statistics (BLS). Loan officer occupations are expected to expand by 11% between 2016 and 2026, according to the BLS. The national average for all occupations combined is lower than this rate, making loan processor employment a great choice for those interested in the banking industry.
Do underwriters and loan processors collaborate?
Underwriters and loan processors collaborate frequently. Before submitting them to the underwriter for approval, loan processors handle loan applications. Together with a loan officer, the borrower completes the loan application. The loan underwriter decides whether to approve the application once the processor validates the data and sends the finished document to him or her.
Sample Job Description for Loan Processors
You may get a decent idea of what businesses are looking for when recruiting for this role by using this sample job description for a loan processor. Keep in mind that every organization is different, and every candidate for a Loan Processor position will have specific requirements.
A sample job description for a loan processor
At Allied Mortgage Plc., we work hard to put our clients’ needs first and assist them in obtaining a loan so they can move into the home of their dreams. The ideal applicant will possess a high school diploma, a GED, or a certificate from an approved university in a loan processing program. Current college students pursuing an associate’s or bachelor’s degree in finance or a closely related discipline will also be taken into consideration.
Candidates for the position of loan processor should be exceptionally good communicators both orally and in writing, as well as extremely organized, meticulous, and able to operate under pressure. To oversee both commercial and residential real estate loan paperwork, a candidate must be able to analyze them thoroughly for accuracy and compliance with banking rules. Our business is expanding quickly right now, and we’d love to have you join our vibrant team right away.
What Alternative Jobs Are Related to This?
Many account collectors and bills perform some of the same clerical tasks as loan processors when it comes to handling financial transactions. Many of the duties carried out by clerks in bookkeeping, accounting, and auditing are also assigned to loan processors. Information clerks may carry out some of the same duties as loan processors even though they deal with less money because they are responsible for maintaining records, gathering data, and distributing information.
Loan processors can improve their careers and become loan officers, as was already noted. Loan officers are taking on a lot of new duties, but they may also continue with some of their more traditional ones, like conducting interviews and maintaining records. Other occupations associated with loan processors include auditing clerks, information clerks, and bill and account collectors.
Accounts must be kept up-to-date, charges must be calculated, and transactions must be completed by bill and account collectors. Auditing clerks perform bookkeeping duties such as recording financial transactions, revising statements, and ensuring the accuracy of financial data. Maintaining records, gathering data, and giving information to clients and employers are the responsibilities of information clerks.
What Form of Education Would Be Beneficial to Me?
A high school diploma or GED is the bare minimum needed for employment as a loan processor, however, some employers might prefer that you have taken some college courses. Whether you go to college or not, your employer will probably require you to take part in on-the-job training courses to instruct you on the pertinent loan processing rules and internal processing practices.
Numerous certificate programs discuss the fundamentals of loan processing offered by community institutions. The rules governing loans, the many types of loans, and procedures for completing and submitting loan applications should all be included in such programs. Debt ratios, credit history research, credit report analysis, and fraud detection are also included in the courses. Programs are frequently targeted at the mortgage loan, banking, or real estate markets.
What is the outlook for employment?
The U.S. Bureau of Labor Statistics estimates that around 208,800 loan processors were working in 2020. Employment is expected to decrease by 2% to roughly 203,800 throughout the ten years from 2020 to 2030. In May 2020, the median yearly wage was $41,370.
The majority of your employment prospects will result from population growth and the corresponding increase in economic activity, but the increased use of online loan applications will limit the demand for your services. You will have a better chance of landing a job if you possess strong phone, math, and customer service abilities.
Conclusion
In conclusion, working as a loan processor can be a rewarding career path for those with excellent communication and customer service skills, attention to detail, and a strong knowledge of loan processing procedures and regulations. While a high school diploma is the minimum education requirement for most loan processor positions, many employers prefer candidates who have a bachelor’s degree in business, finance, or a related field.
Additionally, gaining experience in the financial industry and obtaining a loan processor certification can help you stand out in the job market and increase your chances of landing a job as a loan processor. With the proper education, training, and experience, you can become a successful loan processor and play an important role in the lending process.
Frequently Asked Questions about Loan Processors
- What does a loan processor do?
A loan processor is responsible for verifying the accuracy of loan applications and ensuring that applicants meet the lender’s requirements. They analyze loan applications and financial data to determine whether applicants meet the lender’s requirements. Loan processors also communicate with loan officers, underwriters, and borrowers to ensure that all necessary documentation is provided and that the loan application meets all requirements.
- What are the education requirements to become a loan processor?
The minimum education requirement for most loan processor positions is a high school diploma or equivalent. However, many employers prefer candidates who have a bachelor’s degree in business, finance, or a related field. Some employers may also require candidates to have previous experience in loan processing or a related field.
- What skills do I need to become a loan processor?
To become a loan processor, you will need to have strong computer skills and proficiency with loan processing software. You will also need excellent communication and customer service skills, attention to detail and the ability to analyze financial data, and knowledge of loan processing procedures and regulations. The ability to work well under pressure and meet deadlines is also important.
- Do I need to be licensed to work as a loan processor?
In most cases, loan processors do not need a license. However, some states may have specific licensing requirements for people who process loans. It is important to check with your state’s regulatory agency to determine if there are any licensing requirements.
- What certifications can I obtain to enhance my career as a loan processor?
While not always required, obtaining a loan processor certification can help you stand out in the job market and increase your chances of landing a job as a loan processor. Some popular loan processor certifications include the Certified Mortgage Processor (NAMP), the Certified Loan Processor (CLP), and the Certified Residential Underwriter (CRU).