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Loan processor vs loan servicing specialist

The differences between loan processors and loan servicing specialists can be seen in a few details. Each job has different responsibilities and duties. It typically takes 2-4 years to become both a loan processor and a loan servicing specialist. Additionally, a loan servicing specialist has an average salary of $65,799, which is higher than the $38,122 average annual salary of a loan processor.

The top three skills for a loan processor include loan applications, customer service and property appraisals. The most important skills for a loan servicing specialist are loan modifications, customer service, and foreclosure process.

Loan processor vs loan servicing specialist overview

Loan ProcessorLoan Servicing Specialist
Yearly salary$38,122$65,799
Hourly rate$18.33$31.63
Growth rate-3%-3%
Number of jobs16,22831,753
Job satisfaction--
Most common degreeBachelor's Degree, 46%Bachelor's Degree, 55%
Average age4242
Years of experience44

What does a loan processor do?

A loan processor is responsible for assisting customers with their loan requests, ensuring their eligibility, and choosing the best loan options for their needs. Loan processors carefully review loan application documents and prepare loan proposals for underwriting, analyzing the applicant's financial status and credit scores, processing repayment plans, and adhering to banking and financial regulations. A loan processor must have excellent knowledge of the banking industry and processes to provide the best loan services for the customers efficiently and accurately.

What does a loan servicing specialist do?

A loan servicing specialist is an individual who reviews, authorizes, and recommends commercial and personal loans for approval. It is the loan officer who meets with their applicants to identify their creditworthiness. Typically, they work at credit unions, commercial banks, mortgage companies, and financial institutions. They ensure operational risk controls, regulatory policies and standards, and compliance. Among the skills necessary for the job include customer service and relations, leadership, analytical skills, and communication skills.

Loan processor vs loan servicing specialist salary

Loan processors and loan servicing specialists have different pay scales, as shown below.

Loan ProcessorLoan Servicing Specialist
Average salary$38,122$65,799
Salary rangeBetween $28,000 And $50,000Between $28,000 And $153,000
Highest paying CitySan Francisco, CACharleston, SC
Highest paying stateWest VirginiaMaryland
Best paying companyStanford UniversityGlacier Ban
Best paying industryFinanceFinance

Differences between loan processor and loan servicing specialist education

There are a few differences between a loan processor and a loan servicing specialist in terms of educational background:

Loan ProcessorLoan Servicing Specialist
Most common degreeBachelor's Degree, 46%Bachelor's Degree, 55%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Loan processor vs loan servicing specialist demographics

Here are the differences between loan processors' and loan servicing specialists' demographics:

Loan ProcessorLoan Servicing Specialist
Average age4242
Gender ratioMale, 20.6% Female, 79.4%Male, 32.2% Female, 67.8%
Race ratioBlack or African American, 12.5% Unknown, 4.3% Hispanic or Latino, 17.1% Asian, 7.4% White, 58.3% American Indian and Alaska Native, 0.4%Black or African American, 11.8% Unknown, 4.4% Hispanic or Latino, 14.4% Asian, 8.2% White, 60.7% American Indian and Alaska Native, 0.4%
LGBT Percentage7%7%

Differences between loan processor and loan servicing specialist duties and responsibilities

Loan processor example responsibilities.

  • Manage a monthly pipeline averaging 100 files from origination to funding per month as a Jr. processor.
  • Review and verify documentation consistent with company policies and compliance of FNMA, FHLMC, FHA/VA, USDA guidelines.
  • Gather all documentation necessary to process mortgage loans in accordance with FNMA and credit union guidelines/requirements.
  • Disclose and re-disclose the LE's and Prelim TRID require CD.
  • Upload monthly reports to FHLMC including principal & interest reports, delinquent loans and appraisals.
  • Ensure conditions on USDA commitments are met and loan files are prepared for closing on time.
  • Show more

Loan servicing specialist example responsibilities.

  • Manage the non-judicial and judicial FNMA foreclosure portfolio.
  • Time management and organization skills to effectively prioritize multiple objectives and achieve volume goals.
  • Coordinate and schedule settlements upon final loan approval and review HUD-1 for reconciliation of itemize financial data.
  • Train new hires in the MSP system to ensure they understand how to gather data and for escrow analysis.
  • Prepare internally generate commercial loan documentation for all states the organization does business in.
  • Work with LIS, LPS, and ESO program.
  • Show more

Loan processor vs loan servicing specialist skills

Common loan processor skills
  • Loan Applications, 22%
  • Customer Service, 20%
  • Property Appraisals, 5%
  • Mortgage Loans, 5%
  • Credit Reports, 5%
  • FHA, 4%
Common loan servicing specialist skills
  • Loan Modifications, 17%
  • Customer Service, 12%
  • Foreclosure Process, 5%
  • Real Estate, 4%
  • Loss Mitigation, 4%
  • Escrow Accounts, 4%

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