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.
Loan processor responsibilities
Here are examples of responsibilities from real loan processor resumes:
- 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.
- Perform income calculations, structure loans, and run AUS systems (DU/LP) for approvals.
- Interact with escrow and title officers and SBA representatives to ensure all funding requirements are met.
- Process SBA monthly loan payments as well as submit report and funds to third party administrator.
- Prepare file to submit for a clear to close and ensure file closes according to TRID guidelines.
- Request payoffs, HOA estoppel letters, judgment payoffs, state lien letters and due diligence forms.
- Follow up with appraisals, title orders, HOI requests and verifications of employment to ensure prompt receipt.
- Prepare loan files prior to closing including, ordering title policies, appraisals, UCC searches and flood determinations.
- Train new loan coordinators on how to scrub and send a conditions list to borrower's on new files.
- Train and supervise loan processors, and preform preliminary underwriting of all loans prior to final review by Sr.
Loan processor skills and personality traits
We calculated that 22% of Loan Processors are proficient in Loan Applications, Customer Service, and Property Appraisals. They’re also known for soft skills such as Communication skills, Math skills, and Organizational skills.
We break down the percentage of Loan Processors that have these skills listed on their resume here:
- Loan Applications, 22%
Developed loan applications to include credit information, appraisals, and underwriting requirements from beginning to approval of loan application.
- Customer Service, 20%
Provided superior internal and external customer service by proactively communicating with clients and business partners on loan decisions and underwriting guidelines.
- Property Appraisals, 5%
Evaluated credit reports, preliminary title reports, property appraisals, and other documentation submitted by borrower to determine loan eligibility.
- Mortgage Loans, 5%
Processed and closed mortgage loan applications through ordering required documents and development of a coherent and compliant package to the investor/lender.
- Credit Reports, 5%
Collected and processed documentation for underwriting, including income and asset verification, credit reports, appraisals and other relevant documents.
- FHA, 4%
Reviewed, analyzed and determined acceptability of documents/conditions according to established standards for FHA, VA & Conventional loans.
Common skills that a loan processor uses to do their job include "loan applications," "customer service," and "property appraisals." You can find details on the most important loan processor responsibilities below.
Communication skills. To carry out their duties, the most important skill for a loan processor to have is communication skills. Their role and responsibilities require that "financial clerks should be able to explain policies and procedures to colleagues and customers." Loan processors often use communication skills in their day-to-day job, as shown by this real resume: "managed heavy communication with dealership personnel and company representatives in order to complete loan packages in a timely manner. "
Math skills. Another soft skill that's essential for fulfilling loan processor duties is math skills. The role rewards competence in this skill because "the job duties of financial clerks includes calculating charges and updating financial records." According to a loan processor resume, here's how loan processors can utilize math skills in their job responsibilities: "prepared and presented monthly financial statements as well as statistics of interlibrary loan useage. "
Organizational skills. loan processors are also known for organizational skills, which are critical to their duties. You can see how this skill relates to loan processor responsibilities, because "financial clerks must be able to arrange files so they can find them quickly and efficiently." A loan processor resume example shows how organizational skills is used in the workplace: "processed mortgage loans with calyx point and organizational skills. "
The three companies that hire the most loan processors are:
- CyberCoders69 loan processors jobs
- D.R. Horton39 loan processors jobs
- NVR17 loan processors jobs
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Compare different loan processors
Loan processor vs. Mortgage specialist
Mortgage specialists are professionals who work with lending institutions to identify the best lending product for their clients in exchange for taking the title of the debtors' properties. These specialists must process mortgage loan applications by reviewing their paperwork to ensure accuracy and completeness before submitting for approval. They should monitor accounts during the bankruptcy proceedings to ensure that the rights of their clients are protected. Mortgage specialists are also required to guide associates regarding procedural guidelines from FNMA, FHLMC, and MHA.
There are some key differences in the responsibilities of each position. For example, loan processor responsibilities require skills like "property appraisals," "mortgage loans," "escrow," and "lenders." Meanwhile a typical mortgage specialist has skills in areas such as "residential mortgage loans," "origination," "va," and "inbound calls." This difference in skills reveals the differences in what each career does.
Mortgage specialists really shine in the finance industry with an average salary of $41,888. Comparatively, loan processors tend to make the most money in the finance industry with an average salary of $39,138.The education levels that mortgage specialists earn slightly differ from loan processors. In particular, mortgage specialists are 1.7% more likely to graduate with a Master's Degree than a loan processor. Additionally, they're 0.3% more likely to earn a Doctoral Degree.Loan processor vs. Mortgage consultant
A mortgage consultant is an individual who helps customers and businesses identify the best option for mortgage deals based on their financial resources. To maintain an excellent relationship with clients, mortgage consultants must possess a broad knowledge of the company's products to answer all the clients' queries and concerns. They help clients gather and analyze documents that are required for loan approval and create accurate mortgage information. They also develop relationships with banks and real estate agents to help promote bank mortgages for clients.
While some skills are similar in these professions, other skills aren't so similar. For example, resumes show us that loan processor responsibilities requires skills like "loan applications," "property appraisals," "mortgage loans," and "escrow." But a mortgage consultant might use other skills in their typical duties, such as, "origination," "nmls," "financial services," and "bank products."
Mortgage consultants may earn a higher salary than loan processors, but mortgage consultants earn the most pay in the finance industry with an average salary of $36,576. On the other hand, loan processors receive higher pay in the finance industry, where they earn an average salary of $39,138.Average education levels between the two professions vary. Mortgage consultants tend to reach similar levels of education than loan processors. In fact, they're 2.6% more likely to graduate with a Master's Degree and 0.3% more likely to earn a Doctoral Degree.Loan processor vs. Closing coordinator
In the real estate industry, a closing coordinator is in charge of coordinating the final stages of a real estate deal, ensuring efficiency and smooth transaction. Among their responsibilities include preparing and processing legal documents, liaising with the buyer and seller, managing timelines and payment plans, and ensuring that both parties adhere to the terms of the agreement. Moreover, a closing coordinator must maintain an active communication line with staff, answering their inquiries, and assisting them as needed.
Some important key differences between the two careers include a few of the skills necessary to fulfill the responsibilities of each. Some examples from loan processor resumes include skills like "property appraisals," "loan approval," "lenders," and "underwriting guidelines," whereas a closing coordinator is more likely to list skills in "hoa," "hud-1," "lender approval," and "settlement statements. "
Closing coordinators earn the best pay in the finance industry, where they command an average salary of $45,518. Loan processors earn the highest pay from the finance industry, with an average salary of $39,138.When it comes to education, closing coordinators tend to earn similar degree levels compared to loan processors. In fact, they're 0.5% less likely to earn a Master's Degree, and 0.6% less likely to graduate with a Doctoral Degree.Loan processor vs. Mortgage loan specialist
Also called a loan officer, a mortgage loan specialist assists clients in finding the appropriate financial aid for homes and other properties. Mortgage loan specialists look for new applicants, secure the right loans, assist with the documentation, and supervise the financing process. They collect and review the financial information of their clients for loan grant eligibility. It is important that they develop skills in financial processes, customer service, time management, and communication.
Types of loan processor
Updated January 8, 2025
