job description and salary range of a loan processor
Job Description and Salary Range of a Loan Processor
A loan processor ensures that the process of applying for a loan and completing the required formalities is carried on smoothly. This Buzzle write-up gives you the job description and salary range of a loan processor.
Fast Fact
A loan processor is different from an underwriter. The former prepares the loan application documents to be reviewed by the underwriter.
The process of obtaining a loan from a financial institution is not a cakewalk. Several factors are considered by a bank before providing a loan, some of which include the person's credit history, credit score, payment records, etc. To obtain a loan, you need to complete an application process. This is where a loan processor enters. He is the one who helps the borrower complete the application form with precision. The duties of a loan processor are enlisted in the paragraphs to follow.
Job Description
- A loan processor has a multitude of responsibilities.
- To phrase it in the simplest way possible, his duty is to help clients complete their loan application.
- He questions the clients regarding their financial status and payment history.
- He mostly works in an office, but may be required to work via telephone or email as well.
- He helps customers choose the right type of loan or mortgage, depending on certain factors.
- He checks and verifies the important documents that belong to the customer - these include their credit reports, asset value statements, employment duration, and other financial statements.
- He may be responsible to conduct a background check on the borrower as well.
- He checks and considers other pointers, like assets owned, salary, savings, expenditure, debts, installments, tax returns, etc.
- These factors are of prime importance and heavily matter during loan approval. For example, a borrower who already has a heavy debt and pays small installments may not be a very eligible candidate for a loan. Or, a borrower may have a bad credit score and may not qualify for a loan. These factors have to be considered and analyzed by the loan processor.
- He checks for late payments, bankruptcy, etc., and may give you an idea regarding the approval/disapproval of your loan.
- He has to gather copies of all the necessary documents, verify the accuracy and authenticity, and file them neatly for the underwriter or loan officer.
- He is also obliged to assist the borrower with the post-approval process.
- Once the loan has been approved, it is his responsibility to handle the formalities related to the closing of the loan.
- He has to handle the issues of loan repayment and interest rates.
- Although product promotion is a primary responsibility of a loan officer, in many companies, the loan processor is expected to call customers regarding new products, loan packages, and distribute brochures.
- He has to meet deadlines and coordinate procedures.
- He is also expected to assist with business development and marketing.
- Mortgage loan processors particularly survey important information; they gather details about the property, property owner, borrower, etc. They also review the title and appraisal reports.
- Credit analysis and employment verification have to be cautiously undertaken.
- They communicate with the respective employment sectors. For example, they contact real estate companies and private brokers regarding a property loan. Or, they may contact car dealerships regarding car loans. They may even contact the university or educational institution for student loans.
- In a nutshell, a loan processor determines the applicant details with regards to a myriad of factors (salary, assets, liabilities, etc.), verifies information, prepares documents, and assures efficient completion of the loan application process.
Requirements
- Generally speaking, to become a loan processor, one may require only a high school diploma. However, it is always beneficial to pursue a related bachelor's degree.
- You are required to have an extensive knowledge regarding loans, mortgages, and other similar procedures.
- There are many certifications you can undertake as well. This will give you preference over other aspirants.
- Besides, you will need to pay a lot of attention to detail and be patient while dealing with your clients.
Salary
- According to the BLS, the salary for loan officers falls approximately between USD 29,000 and USD 44,000.
- The salary range in a majority of the states has been observed to fluctuate between USD 30,000 and USD 45,000.
| Alabama | USD 36,000 |
| Alaska | USD 26,000 |
| Arizona | USD 29,000 |
| Arkansas | USD 36,000 |
| California | USD 38,000 |
| Colorado | USD 31,000 |
| Connecticut | USD 41,000 |
| Delaware | USD 31,000 |
| Florida | USD 33,000 |
| Georgia | USD 41,000 |
| Hawaii | USD 22,000 |
| Idaho | USD 23,000 |
| Illinois | USD 40,000 |
| Indiana | USD 34,000 |
| Iowa | USD 35,000 |
| Kansas | USD 32,000 |
| Kentucky | USD 31,000 |
| Louisiana | USD 32,000 |
| Maine | USD 31,000 |
| Maryland | USD 37,000 |
| Massachusetts | USD 43,000 |
| Michigan | USD 36,000 |
| Minnesota | USD 31,000 |
| Mississippi | USD 37,000 |
| Missouri | USD 35,000 |
| Montana | USD 30,000 |
| Nebraska | USD 26,000 |
| Nevada | USD 27,000 |
| New Hampshire | USD 35,000 |
| New Jersey | USD 38,000 |
| New Mexico | USD 31,000 |
| New York | USD 43,000 |
| North Carolina | USD 34,000 |
| North Dakota | USD 32,000 |
| Ohio | USD 34,000 |
| Oklahoma | USD 33,000 |
| Oregon | USD 34,000 |
| Pennsylvania | USD 34,000 |
| Rhode Island | USD 32,000 |
| South Carolina | USD 35,000 |
| South Dakota | USD 27,000 |
| Tennessee | USD 33,000 |
| Texas | USD 34,000 |
| Utah | USD 28,000 |
| Vermont | USD 31,000 |
| Virginia | USD 36,000 |
| Washington | USD 37,000 |
| West Virginia | USD 34,000 |
| Wisconsin | USD 32,000 |
| Wyoming | USD 29,000 |
Work Environment
- As a loan processor, you will mostly work regular hours.
- Sometimes though, if your clients are involved in securing loans and may face complications, you might have to work longer hours.
- With a loyal clientèle and excellent customer service, you may be assigned many other responsibilities and be promoted to higher positions.
- Different guidelines need to be followed while working for banks, private consultancies, and other financial institutions.
- A fairly decent job growth rate is predicted for this sector - this involves loan processors, underwriters, loan officers, etc.