how to become a loan processor
How to Become a Loan Processor
A loan processor assists borrowers to complete the loan application process efficiently. The Buzzle article below tells you how to become a loan processor.
- Staff experience
- Internship opportunities
- Credentials
- A loan processor prepares loan programs for borrowers.
- He helps customers fill the application form - this is inclusive of solving any kind of problem that occurs while filling the form.
- He ensures that the documentation is in a proper condition to be evaluated by the underwriter.
- He helps clients gather the required financial documents.
- A well-experienced loan processor may also go through the client's payment history and take a call on whether his loan may be approved or disapproved, even before consulting the underwriter.
- In larger organizations, he may help promote products (loan packages) to newer customers as well.
- Patience
- Strong attention to detail
- Excellent analytical skills
- Presence of mind
- Strong math and statistical skills
- Good interpersonal skills
- As such, it is not mandatory for a loan processor to have a college education. But as you are given more assignments in the organization, you will be expected to possess higher education, therefore, equip yourself with a college degree.
- To begin with, take subjects like math, statistics, economics, etc., for your post-secondary education and make sure you obtain decent grades.
- After high school graduation, you may pursue an associate's degree in loan processing. Your program would cover subjects like accounts, loan application, and business administration.
- You can even pursue a bachelor's degree in business communication or banking.
- Most of the courses comprise internships. They will help you gain mastery over the subject.
- Once you are done with your basic education, you may apply to financial institutions for the designation of a loan processor.
- There are many certificate programs that specialize in loan processing.
- Taking a certification will increase your chances of finding the right job and even enhance your resume when you apply for higher positions (within the same or another organization).
- To be eligible to take these certifications, you need to possess a bachelor's degree. Therefore, once you complete your college degree and internship, you may take one or more of these certifications to supplement your education.
- Your syllabus would comprise subjects like loan processing, account management, real estate, mortgages, finance management, computer applications, debt management, taxes, etc.
- You may apply for advanced courses after some work experience. These courses include subjects like underwriting, fraud, industry banking software, property loan, etc.
- Ideally, standard certifications, like licensed mortgage broker, certified financial planner (CFP), or licensed mortgage loan originator (MLO) will help you get placed in higher positions than a loan processor. Therefore, it would be sensible to take them after some experience.
- You can take the Certified Purple Processor (CPP) or the Certified Master Loan Processor (CMLP) from the NAMP® (National Association of Mortgage Processors®). They are excellent and reputed certifications for loan processors to advance in their career, especially in the mortgage sector.
- Typically, most banks/agencies follow certain guidelines of their own, and you will be provided on-the-job training.
- You will be trained in the technical aspects of the job, software applications, and the overall functioning of the organization.
- The training is mostly sponsored by the company and is mandatory, irrespective of whether your educational qualifications are basic or advanced.
- If you work for a licensed agency, you will not be required to have a license (This point is valid only for loan processors. Loan officers need to be registered.).
- On the contrary, if you are an independent contractor loan processor, you will require to be licensed.
- The salary range of a loan processor may be between USD 25,000 and USD 45,000.
- The pay varies heavily as per the financial institution, level of education, location, and experience.
- Certified professionals may earn well right at the beginning of their career, as opposed to people who have an associate's or bachelor's degree without a certification.
- In fact, the salaries of certified processors may be as high as USD 40,000 right in the beginning.
- Again, states like New York and Washington always have a higher demand for loan processors (the median salaries in these states are between USD 35,000 and USD 45,000), while states like Idaho and Hawaii have a comparatively lower range (USD 20,000 to USD 25,000).
- The BLS has predicted a job growth of 8% for this sector between 2012 and 2022.
- The market situation for this field was comparatively lesser a few years back, given the recession and economic decline.
- Recent statistics, however, indicate a rise in the economy, based on which a gradual job rise can be projected.
- To be on the safer side, it is preferable to gain mastery over the lending, loan application, and sales.