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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 CareerStint write-up gives you the job description and salary range of a loan processor.
CareerStint Staff
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
Source: Indeed.com as of February 6, 2015. Figures are in US Dollars.
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.
Working in the financial sector, especially with mortgages, is always tedious. While a loan processor's job may not be very hectic, it needs to be handled very carefully due to the involvement of a huge amount of money.