A loan processor, also known as a mortgage processor, helps in loan processing and submits it finally to the underwriter for approval. When a mortgage is taken, a loan processor is responsible for helping in choosing the right mortgage. A loan processor job involves evaluation, authorization of approval, or rejection of loan applications for businesses/people. Loan processors act as a link between consumers and financial establishments, which aid the selected applicants to obtain mortgages timely. The loan processors meet the customers, verify their requirements and propose suitable loan products to help meet their financial needs. In addition, the loan processors determine the ratios and metrics for debt payment plans for customers in a financial crisis. Loan processors work with clients, organizations, and homeowners.
What is a Loan Processor?
A loan processor job involves the preparation of loan applications file and other documentation for the transfer to the loan underwriter. The loan processor collects the documents to verify the information of loan applications. Also, pay stubs, bank statements, W-2 forms, credit report explanations, and bank statements.
The loan processor job includes working with loan officers. The loan processor ensures that the customers’ financial profile matches with the lenders’ guidelines for the chosen loan plan. However, the loan processors don’t have a license for providing any recommendations regarding suitable loan plans, closing costs, or interest rates. However, a loan officer has the legal rights for recommendations. The loan processors arrange the documents in the format needed for every loan program. This helps the underwriter to acquire the needed information for the loan approval.
What does a Loan Processor do?
A loan processor, assembles, administers, and processes loan applications documents before the loan approval by the underwriter. He is the middleman between the loan officer and the underwriter. They give proper guidance to the borrower right from the loan processing. After the finalization of the paperwork, the loan processor transfers the same to the underwriter.
Loan processor job duties include:
- Evaluation of the creditworthiness by the processing of the loan applications and paperwork within specific limits.
- Determination of all the ratios which are applicable and metrics and setting up plans for the payment.
- Interviewing the loan applicants to verify their financial eligibility and viability of giving away loans.
- Reviewing the current active loan files every day to check if any papers are misplaced and also helps the process along.
- Identification and recommendation of the products which meet the client’s needs and the company’s lending rules.
- Communication with the clients regarding the requestor to provide details.
- Utilization of professional judgment to verify which prospective borrowers signify excellent risk prospects for the company.
- Conforming with the laws and the regulations and adhering to the lending agreement guidelines.
Job brief for Loan Processor
The loan processor job comprises performing reviews of businesses or individual loans. It is an intermediary role between potential clients and financial institutions. The main goal of a loan processor is to assist the selected applicants in getting loans appropriately and protecting the company’s credibility. In addition, the loan processor job includes the scrutiny, assessment, and appraisal of the loan applicants and finalizing and writing contracts.
Responsibilities of Loan Processor
The Loan Processor Job includes the following:
- Performing the preliminary reviews of prospective borrowers by systematically investigating the loan applications.
- Calculating the credit status of the loan applicants via background investigation.
- Interviewing the loan applicants to assess their qualifications for obtaining loans.
- Finalizing all the applicable non-financial and financial norms and developing loan repayment strategies.
- Following up with customers to make them very clear on all the main points
- Approval of the selected candidates and reporting decisions with firm advice.
- Finalizing the loan contracts and keeping customers updated about the obligations and
Rules.
- Being quick with the financial and lending services.
- Creation and renewal of records
- Identification of customer requirements, exploration of all alternatives, and advising various loans.
- Cultivating loyal recommendation associations, proposing varying outlets, and cross-promote the services and products.
- Building trustworthy relationships and enhancing dedication towards customers.
- Working within the established rules and adhering to the law requests always.
Requirements for Loan Processor
- Previous work experience in a loan processor job.
- Expertise in MS Office and banking computer software.
- Good knowledge about direct/indirect loan processing.
- Staying updated with the latest rules and regulations
- Exceptional sales and communication skills.
- Customer satisfaction orientation.
- Results-driven approach.
- BSc degree (finance/economics).
Average Salary for Loan processor (City Based Tables)
Key Skills
- Experience with software programs related to mortgage loan.
- Excellent oral and written communication skills.
- Good customer service and interpersonal skills.
- Organization and time-management skills.
- Ability to follow strict deadlines.
- Capability to explain the technical concepts simply.
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Why pursue a career as a Loan Processor?
A loan processor job is the best career choice for careers in the field of finance. A loan processor is an excellent career option. Loan processing involves responsibility, attention to detail, and great time management skills. This makes the person pursuing this career to be a very responsible person. Loan Processing jobs are in demand with excellent salary packages. As freshers, loan processors can get a salary starting at ₹ 2, 07,000 per year, while the experienced can get up to ₹ 15, 00,000 per year.
How to Become a Loan Processor
Graduation in the field of economics/finance is required to acquire a job as a loan processor. Other banking certification courses also help in the placement of the loan processor job. Suitable educational qualifications with required experiences in the fields of banking and sales will be an added advantage when applying for this position. Further, the candidates will have to attend a qualifying exam, conducted by the recruiting firm to obtain this job.
The candidates who have graduated in Commerce, Economics, Finances, Banking, and Sales, etc, can apply for the position. However, most companies ask for graduates (in any stream) and appropriate experience and skills related to the banking sector for the loan processor job position. A loan processor job requires all the necessary skills to become a successful loan officer and the preferred educational qualifications. Handling financial and banking software with excellent advanced computer skills is preferred for a loan processor job. Highly motivated candidates possessing excellent marketing skills can do very well as loan processors. Positive interaction with and persuasion of clients are also desirable skills for those interested in jobs involving loan processing.
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