A loan processor is the key between receiving the application for a mortgage loan and submitting it to an underwriter. An underwriter is a large financial service provider who checks whether his client is eligible for receiving his products or not. An underwriter can be a bank, insurer, or an investment house. Hence, a loan processor is important for getting a loan passed and closed. A loan processor is required to check, sort, and assemble all data related to loan applications. He is responsible for making an estimate of the assets and liabilities of clients, thereby ensuring whether the loan amount can be approved or not. With several industries working on credit, loan processors can be found in different places, like mortgage, commercial, and consumer loan departments of banking institutions and finance companies. Depending upon the industry in which loan processors are working, they are known by alternate names, such as mortgage loan processor, credit systems processor, and financial loan officer.
Becoming A Loan Processor
To become a loan processor, a candidate should have completed at least high school. While some employers prefer candidates who possess a high school diploma, some companies hire candidates with a bachelor’s or associate degree. However, some industries demand extra certifications as well. You will be required to learn the basics of loan processing, loan approval process, credit policies, and any applicable laws. Further, you should be able to detect fraud and acquire knowledge about automated processing systems.
There are several colleges that offer courses, diplomas, and certificates in loan processing. Since most companies desire applicants with an associate or bachelor’s degree, opt for one in business or finance. Depending upon which state or country you are living, you will have to take up a course that provides you all the knowledge of that particular state or country following the laws of loan processing.
To become a loan processor, a person should possess excellent oral and written communication skills so that he can convey all the required and possible information to his clients in a decent and clear manner. For this, he must be able to communicate effectively. He should have a pleasing personality and be interactive with people so that he can convince people to apply for loan through him. A loan processor should have a general know-how about computers as most companies use electronic systems for processing loans. He should be capable of getting the requisite documentation for satisfying the underwriter. Additionally, he must be highly motivated, have the ability to perform multi-tasking, and be prepared to work in different environments with a variety of people.
Roles & Responsibilities
A loan processor will first have to get an appointment fixed with the client. He will, then, have to figure out the expectations of the client in terms of the amount required as loan. For this, he will have to carry out an analysis and suggest some loan products that will suit the needs of the client. To make this easier for the client, he is required to present a comparative study of the different loan products, allowing him to make an easy choice. A loan processor should be ready to clarify all doubts popping up in the minds of clients and financers. He should make clear the cost of the loan throughout the loan period and the expected monthly payments to be made. He must possess the qualities of assessing the financial position and background of his clients in order to approve the loan. Besides, he should be able to evaluate whether the client is capable of repaying back the loan amount or not. On completing all the formalities, the loan processor has to send the loan application form to the financial company. He is responsible for conveying the loan details to his clients in order to get their approval.
To start off with, you can apply in a mortgage company or employment services company that offers loan processing contracts. Generally, most loan processors are hired and provided on-the-job training. After getting accustomed to handling more clients and responsibilities, a loan processor advances to managerial positions. Depending upon your experience and interest, loan processing offers you a number of specializations to choose from, such as home, real estate, car, and personal loan. With experience, you can advance your career towards becoming a supervisor of other loan processors. With more and more people seeking for mortgages and other commodities on credit, the demand for loan processors is increasing gradually. The career prospects of a loan processor largely vary with the conditions prevailing in the economy. Whenever the economy experiences an increase, there are more requests for loans, thereby creating more job opportunities for loan processors. However, the vice versa can also take place if the economy turns downward.
Right from presenting the different types of loan products to the clients to getting their approval to supplying the funds to them, a loan processor is required in the entire process. This, itself, suffices the significance of a loan processor in any industry that deals with finances on credit. Once you have established your career as a loan processor, you have numerous opportunities to earn your future. All the best!