The loan processor job description details the role of individuals responsible for evaluating loan applications. Others have simplified it as responsible for deciding whether a client is eligible for a loan. Loan processor job description should outline all the duties and main responsibilities of the role.
Research has found that the United States alone employs a total of 221,180 loan processors. A study carried out by Zippia determined that 46.4% of loan processors have a bachelor's degree. The same study discovered that 3.9% of loan processors have master's degrees, representing higher education levels. The BLS projects an 11% increase in loan processor positions between 2016 and 2026. This makes loan processor careers an excellent option for those interested in finance.
The job description of loan processor includes a wide range of duties and responsibilities. These rely on the person's particular work, business, or industry. Some generic duties include ensuring the correctness of loan packages by reviewing loan packages against system or investor requirements. The loan processor job description must always include the KSAOs required for an individual to be successful in such a role.
In some cases, loan processors may also be responsible for handling mortgage trigger leads, which are generated when a consumer's credit activity indicates potential interest in a mortgage. This can allow loan processors to pre-screen and qualify interested clients early in the process.
Overall, this loan processor job description reflects what employers seek when hiring for this role. Loan processor job descriptions can reveal different duties, depending on the nature of the organization and the sector in which it operates.
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Job Description of Loan Processor: Overall Purpose
Submits loan files for approval by preparing and shortlisting assessed loan files. The role monitors policy compliance by ensuring all paperwork and signatures are in order before submission.
Job Description of Loan Processor: Primary Duties
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- Determines eligibility of loan applicants by researching the client's credit position and financial status.
- Creates repayment plans for loan applicants by liaising with both applicants and lenders.
- Recommends suitable types of loans for applicants by working with them to establish their needs vs their capabilities.
- Ensures loans are processed by submitting files to the designated approval authority.
- Assesses the client's suitability for mortgages or loans by conducting interviews.
- Ensures applicants comply with the regulatory requirements and laws by guiding them through the application process.
- Verifies important information by following up with clients to clear ambiguities.
- Evaluates prospective borrowers initially by carefully reviewing their applications.
- Develops debt repayment strategies by weighing all relevant financial and non-financial requirements.
- Finalizes loan agreements by notifying clients of their obligations.
- Keeps abreast of loans and other financial services by conducting research.
- Maintains databases by renewing and creating new records.
- Suggests various types of loans by identifying the customer's needs and exploring all options.
- Cross-sells services and products by referring clients to similar or other beneficial services with the company.
- Ensures customer satisfaction by forging trust relationships and enhancing customer dedication.
- Checks for omitted or erroneous entries by reviewing all the paperwork.
- Determines which prospective borrowers offer the company low-risk opportunities by using professional judgment and facts from research.
- Serves all clients and increases the goodwill and revenue of the organization by conducting all business ethically and professionally.
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Job Description of Loan Processor: Qualifications Required
- A minimum of a Bachelor's Degree in Finance or a related field is required.
- Demonstrated knowledge of computer systems, such as Advanced MS Office, is required.
Job Description of Loan Processor: Experience Required
- Experience working as a loan processor (2 years').
- Experience with numbers and large databases is important because it demonstrates the ability to make correct calculations.
- Experience working with loan policies and procedures is required.
- Experience with advanced Microsoft Office packages is needed to create and present reports.
- Experience working with minimum supervision and swift completion of tasks is necessary to ensure accuracy.
- Experience working as a member of a team is essential to reinforce teamwork.
- Experience with teleworking is needed for research and investigation of loan applicants.
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Job Description of Loan Processor: KSAOs
Knowledge
- Knowledge of basic math is needed to ensure that the calculation done is correct.
- Knowledge of various information systems, i.e. Advanced MS Office packages, is needed to ensure reports are created logically.
- Knowledge of policies that guide the loan process is needed to minimize legal liability.
Skills
- Communication skills are needed for guiding clients and liaising with customers.
- Attention to detail skills is needed to reduce erroneous completion of forms and applications.
- The ability to multitask is necessary for concurrent progress on multiple activities.
Abilities
- The ability to operate with minimum supervision is needed to guarantee efficiency completion of assigned work.
- The ability to interact with different clients is needed to ensure customer satisfaction across the board.
- Ability to quickly resolve issues by engaging the necessary stakeholders.
Other Characteristics
- A loan processor should be tech-savvy because they research the applicants, which can be done digitally using various platforms.
Conclusion
The loan processor job description is essential in financial services, banking and insurance. As such, the loan processor job description should include extensive duties and key responsibilities.
Brandon Murambinda is an Organizational Design and Development Consultant at Industrial Psychology Consultants (Pvt) Ltd, a management and human resources consulting firm.
Email:brandon@ipcconsultants.com or visit our websites https://www.thehumancapitalhub.com/ and www.ipcconsultants.com
