Loss mitigation specialist vs collections representative

The differences between loss mitigation specialists and collections representatives can be seen in a few details. Each job has different responsibilities and duties. It typically takes 6-12 months to become both a loss mitigation specialist and a collections representative. Additionally, a loss mitigation specialist has an average salary of $43,251, which is higher than the $34,015 average annual salary of a collections representative.

The top three skills for a loss mitigation specialist include customer service, loan modifications and foreclosure process. The most important skills for a collections representative are payment arrangements, customer service, and delinquent accounts.

Loss mitigation specialist vs collections representative overview

	Loss Mitigation Specialist	Collections Representative
Yearly salary	$43,251	$34,015
Hourly rate	$20.79	$16.35
Growth rate	-8%	-8%
Number of jobs	7,596	85,275
Job satisfaction	3.67	-
Most common degree	Bachelor's Degree, 51%	High School Diploma, 33%
Average age	46	46
Years of experience	12	12

What does a loss mitigation specialist do?

A loss mitigation specialist is responsible for evaluating outstanding debts, assisting the mortgage owner on minimizing losses by reviewing potential risks before settling a mutual agreement for the debtor and the bank. Loss mitigation specialists analyze financial documents and account statements, determining the property value, and assess the debtor's credit ratings. They also negotiate on payment plans, ensuring that the debtor understands the terms and conditions to prevent further financial damage. A loss mitigation specialist must have excellent knowledge of the financial industry, including banking products and services.

What does a collections representative do?

A Collections Representative's role is to collect payment for outstanding or overdue bills through phone calls, email, mail, or sometimes personal appointments. A Collections Representative is required to have a great deal of research and communication skills in order to reach out to people and explain how to settle their debts or even negotiate a payment term or plan. Collections Representatives must also make sure that these terms are honored and met, and create reports for the creditor regarding the delinquent accounts.

Loss mitigation specialist vs collections representative salary

Loss mitigation specialists and collections representatives have different pay scales, as shown below.

	Loss Mitigation Specialist	Collections Representative
Average salary	$43,251	$34,015
Salary range	Between $34,000 And $54,000	Between $26,000 And $42,000
Highest paying City	Virginia Beach, VA	San Ramon, CA
Highest paying state	Maryland	California
Best paying company	Accenture	University of California, Berkeley
Best paying industry	Professional	Finance

Differences between loss mitigation specialist and collections representative education

There are a few differences between a loss mitigation specialist and a collections representative in terms of educational background:

	Loss Mitigation Specialist	Collections Representative
Most common degree	Bachelor's Degree, 51%	High School Diploma, 33%
Most common major	Business	Business
Most common college	-	-

Loss mitigation specialist vs collections representative demographics

Here are the differences between loss mitigation specialists' and collections representatives' demographics:

	Loss Mitigation Specialist	Collections Representative
Average age	46	46
Gender ratio	Male, 40.4% Female, 59.6%	Male, 30.6% Female, 69.4%
Race ratio	Black or African American, 13.9% Unknown, 3.9% Hispanic or Latino, 20.7% Asian, 3.4% White, 57.6% American Indian and Alaska Native, 0.5%	Black or African American, 12.2% Unknown, 3.9% Hispanic or Latino, 18.9% Asian, 3.4% White, 61.1% American Indian and Alaska Native, 0.5%
LGBT Percentage	8%	8%

Differences between loss mitigation specialist and collections representative duties and responsibilities

Loss mitigation specialist example responsibilities.

Manage internal team SharePoint and document repository.
Document accurate loss mitigation reviews and foreclosure details via MSP.
Submit Medicare claims through DDE.
Deal with Nielsen and Rentrak to monitor advertiser ad ratings
Check accounts for accuracy according to Medicare HMO guidelines.
Resolve customer disputes and prepare adjustments to A/R when necessary.

Collections representative example responsibilities.

Protect A/R assets by managing a portfolio of accounts to maximize gainful sales and reduce debt losses.
Maintain effective communication and utilize negotiation skills with internal and external customers to effect collections while maintaining customer good will.
Submit all reconsideration and appeals if need.
Conduct periodic data cleaning of queues balances deny with deny appeals.
Resolve valid or authorize NSF charges due to decline credit cards or ACH transactions.
Collect and count inventories, reconcile purchases and scan UPC's and inputting price information.

Loss mitigation specialist vs collections representative skills

Common loss mitigation specialist skills

Customer Service, 13%
Loan Modifications, 9%
Foreclosure Process, 8%
Inbound Calls, 5%
Loss Mitigation Options, 4%
Payment Arrangements, 3%

Common collections representative skills

Payment Arrangements, 14%
Customer Service, 13%
Delinquent Accounts, 9%
Past Due Accounts, 6%
Customer Accounts, 4%
Debt Repayment, 4%

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Loss Mitigation Specialist
Loss Mitigation Specialist vs Collections Representative

Updated January 8, 2025

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