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Mortgage loan processor vs loan officer

The differences between mortgage loan processors and loan officers can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 2-4 years to become a mortgage loan processor, becoming a loan officer takes usually requires 4-6 years. Additionally, a loan officer has an average salary of $45,817, which is higher than the $43,594 average annual salary of a mortgage loan processor.

The top three skills for a mortgage loan processor include customer service, FHA and va. The most important skills for a loan officer are customer service, origination, and loan origination.

Mortgage loan processor vs loan officer overview

Mortgage Loan ProcessorLoan Officer
Yearly salary$43,594$45,817
Hourly rate$20.96$22.03
Growth rate-3%4%
Number of jobs16,27663,663
Job satisfaction-4.5
Most common degreeBachelor's Degree, 50%Bachelor's Degree, 61%
Average age4245
Years of experience46

What does a mortgage loan processor do?

A mortgage loan processor is a person who is responsible for the preparation of mortgage applications and any other paperwork. Mortgage loan processors interview the loan applicants, assist them in selecting the right mortgage, and approve or reject their applications. They are expected to have excellent communication, extraordinary interpersonal abilities, and strong attention to detail. Their job involves working with the loan officer and the underwriter. Also, they must be equipped with management skills and aptitude in math.

What does a loan officer do?

Loan officers are responsible for assisting borrowers on the best type of loans to avail and guiding the clients throughout the application process. A loan officer must be highly knowledgeable about different lending products, payment plans, loan regulations, and essential files for fast loan approval. Loan officers also act as the first point of contact, conducting an initial screening of the customers, process loan contracts and appropriate documentation, update account records, and respond to customer's inquiries. A loan officer also has the right to reject loan applicants who do not meet loan qualifications.

Mortgage loan processor vs loan officer salary

Mortgage loan processors and loan officers have different pay scales, as shown below.

Mortgage Loan ProcessorLoan Officer
Average salary$43,594$45,817
Salary rangeBetween $33,000 And $57,000Between $30,000 And $69,000
Highest paying CitySan Francisco, CANew York, NY
Highest paying stateMassachusettsNew York
Best paying companyAmplify Credit UnionBangor Savings Bank
Best paying industryProfessionalFinance

Differences between mortgage loan processor and loan officer education

There are a few differences between a mortgage loan processor and a loan officer in terms of educational background:

Mortgage Loan ProcessorLoan Officer
Most common degreeBachelor's Degree, 50%Bachelor's Degree, 61%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Mortgage loan processor vs loan officer demographics

Here are the differences between mortgage loan processors' and loan officers' demographics:

Mortgage Loan ProcessorLoan Officer
Average age4245
Gender ratioMale, 21.7% Female, 78.3%Male, 55.3% Female, 44.7%
Race ratioBlack or African American, 13.3% Unknown, 4.3% Hispanic or Latino, 14.2% Asian, 6.8% White, 61.1% American Indian and Alaska Native, 0.4%Black or African American, 9.0% Unknown, 4.6% Hispanic or Latino, 15.7% Asian, 6.3% White, 63.9% American Indian and Alaska Native, 0.5%
LGBT Percentage7%8%

Differences between mortgage loan processor and loan officer duties and responsibilities

Mortgage loan processor example responsibilities.

  • Manage individual pipeline using the LPS system.
  • Manage a monthly pipeline averaging 100 files from origination to funding per month as a Jr. processor.
  • Process all types of loan products including FHA, VA, conventional, no income verification, and the self-employed borrower.
  • Assist with executing all loan sales in the secondary market to FNMA, FHLMC and private investors.
  • Verify and validate loan applications for conforming, FHA, VA applications via DU/LP and complex lender software programs.
  • Process USDA and conventional loans.
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Loan officer example responsibilities.

  • Manage a multifacete commercial real estate investment firm.
  • Supervise and manage the processing staff and also underwrite conventional loans for correspondent lenders.
  • Follow up leads for refinance loans gather all applications and necessary paperwork to qualify applicants from origination to close of escrow.
  • Analyze available resources to determine suitable mortgage products (FHA, FNMA/FHLC) to meet clients' purchasing or refinancing goals.
  • Originate and process various loan products including government, conventional, portfolio, construction, USDA mortgages, home equity line/loans.
  • Originate FHA, VA, conventional, jumbo, and USDA loans, according to specific lender guidelines in broker environment.
  • Show more

Mortgage loan processor vs loan officer skills

Common mortgage loan processor skills
  • Customer Service, 22%
  • FHA, 6%
  • Va, 6%
  • Property Appraisals, 5%
  • Excellent Organizational, 5%
  • Investor Guidelines, 5%
Common loan officer skills
  • Customer Service, 17%
  • Origination, 13%
  • Loan Origination, 5%
  • FHA, 5%
  • NMLS, 5%
  • Loan Products, 4%

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