Loan Processor Career Path

Loan processors are often the first contact line for a borrower with a financial institution. They work with borrowers to determine what type of loan they need, evaluate their suitability for the loan, and process the paperwork necessary to get them approved. Loan processing is an important job that can be stressful because it’s so detail-oriented. However, if you have strong organizational skills and enjoy working in finance, this could be just the career path for you!

Now, let’s get to know about this career path in detail.

Table of Contents

1. What Is a Loan Processor?

A loan processor is a professional responsible for the financial well-being of their clients. They work with clients to help them get the loans they need to finance their lives and businesses. Loan processors work with several applicants and industries to help them get the funding they need to live their lives and grow their businesses.

Loan processing requires a significant amount of attention to detail to help clients get the loans that they need without any errors. A loan processor must be willing and able to work with people at all levels of society to find the best financial opportunities for them. Of course, working with different types of people can be difficult or even frustrating, but this isn’t the only challenge of the job. Loan processors also need to read through an application and determine if all of the details are correct. This is easier than it sounds because errors can sometimes sneak into applications without notice, which is why loan processors need to have an eye for detail.

This position requires a good amount of education because loan processors must-read financial documents correctly and accurately. It’s also essential that they communicate with clients to explain the different agreements, contracts, and other legal forms involved with loans.

A loan processor is responsible for the financial well-being of their clients and works with people at all levels of society.

2. What Are the Education and Training Required for a Loan Processor?

To become a loan processor, you will need to have formal education. This can be at the associate’s level, bachelor’s level, or even master’s level depending on what kind of position you are trying to get. You may want to consider a degree in finance, accounting, or business to have the best chance of landing that loan processor position.

Even if you are not working through an official education program, it will still be wise to take on training. Training is available online for free on sites like Udemy. Consider signing up for a course on basic accounting, finance, or banking. It would be best to speak about such topics as your interview confidently, so having a head start is never wrong.

Before applying for jobs, you may also want to consider getting some actual work experience in the banking, accounting, or finance industry. This is not always possible, and most employers will not require this, but it can’t hurt your chances of getting that first job.

Even if you could not get the formal education required for this position, consider taking business courses to better your chances at an interview. Business courses such as basic accounting, understanding financial statements, and how they’re created may be beneficial. Marketing and sales are other areas where you can stand out if experienced.

3. What Kinds of Skills Should I Have to Be a Loan Processor?

Many hiring managers look for skills when interviewing candidates include corporate communication, verbal communication, and interpersonal skills. You must be able to communicate effectively with interviewers and company employees once you are on the job.

It would also help to communicate with those you are processing loans for. Being part of a team means working directly with other people, and as such, strong verbal and interpersonal skills are essential. Many companies will hire candidates that they feel can produce results, but it is easier if you can effectively communicate with them both.

You must have strong computer skills when applying for a loan processor position. You will need to type quickly and efficiently when inputting numbers into the system. It is also essential to know standard programs such as MS Office, Gmail, and Google Docs.

Many companies require their employees to be bilingual, giving you an advantage in this career. Knowing how to use Microsoft Excel can also go a long way when applying for this position.

4. What Are the Most Common Tasks That Loan Processors Perform?

One of the most important things that any loan processor will do is communicate with clients both in writing and over the phone. Drafting email responses, memos, reports, and projects are all everyday tasks that a loan processor performs.

In addition to these things, you will also be responsible for quickly and efficiently inputting numbers into the system. When applying for this position, you must have strong computer skills since most companies require their employees to use both MS Office and Google Apps. It is also essential that you know various programs such as MS Excel and Google Docs.

One task that many loan processors work on is organizing the workflow. This refers to scheduling and prioritizing tasks so that everyone in the office will operate at their best. You can expect to communicate with several people to bring this about successfully.

5. What Kind of Salary Should I Expect to Make as a Loan Processor?

The salary you can expect to make will depend on your experience, education, the company you work for, and other factors. You can expect to earn an average of $55,000 per year when working for this company. Some employers may offer benefits while others do not, so this will also need to be considered when you are planning your salary.

6. What Is the Job Growth for This Position?

The industry that employs loan processors is expected to grow about 13 percent in the next ten years, which is a relatively good growth rate. This means that there will be plenty of opportunities for those looking to get their foot in the door and work with programs such as this one.

The growth of the industry means that there will be plenty of job openings to keep those who are experienced in this field busy and those who are relatively new to it. The hiring rate is expected to increase by about 10 percent, which shows that getting your foot in the door may be challenging if you don’t have the experience necessary.

Several organizations are trying to help employees find better jobs with higher salaries. If you are interested in getting ahead in this field, many of these types of places can help you find the best job for your experience level.

7. Entry-Level Job Duties

As a loan processor, you would be responsible for processing customer requests for loans. This includes gathering information about the customers’ financial situation and needs, assessing their creditworthiness, and recommending the best type of loan they are eligible for.

You would also help them fill out the necessary paperwork to secure funding from lenders, collect payments on time, resolve problems with borrowers who default on their loans or have other issues that need attention. Finally, you might be expected to work with colleagues to troubleshoot any problems that arise in your department or provide feedback on ways to improve efficiency.

Loan processors, customer service representatives, junior credit analysts, account managers, loan officers, and escrow assistants are examples of some entry-level job titles you could hold in this field.

8. The Career Path of a Loan Processor

Entry Level Loan Processor

The Processors job is to review, calculate and manage incoming documents, then transfer them into the corresponding account by making adjustments for interest rates, fees, deposits, payment schedules, and other relevant information manually and electronically with the continuous balancing of accounts.

Typically companies prefer individuals with at least 1-2 years of experience in a fast-paced financial environment, excellent communication skills, and the ability to adapt to any situation.

Mid-Level Loan Processor

A mid-level processor is responsible for calculating and balancing data and monitoring all aspects of daily transactions taking place. They hold responsibility for double-checking calculations made by lower-level loan processors, ensuring no errors or overpayments.

Mid-level loan processors also can create financial models and manage budgets. They have access to a wide range of software, including statistical modeling tools and other relevant programs that help them manage daily tasks efficiently.

Processors at this level deal with customer service issues and requests daily, managing and resolving them professionally. Mid-level loan processors also handle claims, fines, and other financial responsibilities.

They must have a minimum of 3 years of experience in the financial industry, knowledge of account reconciliation, management reporting, and bank reconciliations.

They should possess superior interpersonal skills, be capable of multitasking, and work in a team and individual situations with minimal supervision.

High Level Loan Processor

A high-level loan processor is expected to have extensive experience working in the financial industry, with excellent communication skills. These are typically individuals who supervise other processors daily, reviewing their work before transmitting new data into the system and following up on any queries.

High-level loan processors are responsible for controlling the final stages of the process; they calculate, reconcile and balance data; address potential issues with customers and resolve them within given timeframes. They also prepare monthly reports and handle customer service more generally.

They typically require at least five years of experience in the financial industry, along with a degree in business studies.

Other roles within the loan processor department include:

• Loan Processor Supervisor – typically manages mid-level processors and works closely with high-level loan processors. This position requires at least five years of experience as a loan processor and leading, motivating, and supervising other staff members.

• Loan Processor Team Leader – typically manages and supervises a team of mid-level processors. This position requires at least five years of experience as a loan processor and excellent leadership, communications, and people management skills.

• Accounts Department Supervisor – this role is mainly focused on the back end of the department; they hold responsibility for ensuring that all received documents are appropriately reviewed and calculated within given timeframes before being sent to the respective accounts.

• Chief Operations Officer – this role is responsible for overseeing all company’s financial operations, including receivables and payables, as well as controlling the overall workflow flow of the department. This position also maintains supervision over loan processors and managers and their teams.

• Controller – this role is responsible for the company’s financial reporting, which may include monthly and quarterly performance reports and variance analysis. The controller should be an expert in accounting procedures and processes and have high-level knowledge of investment decisions and how they impact overall business performance.

9. Best Colleges to Study Loan Processing

Several top colleges offer programs in loan processing. Students who want to make a career in this field can find some good options among these colleges. The programs offered by these colleges are comprehensive and cover all aspects of loan processing. They also allow students to gain hands-on experience in the industry.

Some of the best colleges to study loan processing are-

Rasmussen College– This college provides programs in this area. The courses offered here include:

The institute has a 100% job placement record and excellent career opportunities. It has campuses spread across sixteen states and two provinces of Canada. http://www.rasmussen.edu/locations/

New England College– The college provides students with the opportunity to earn a degree in this area. This computer-based degree is designed to provide participants complete flexibility in an educational environment.

Students at the college are also involved in activities that help them develop their interpersonal skills. It has campuses spread across four states. http://www.necollege.edu/

American Intercontinental University (AIU)- This university provides students with the opportunity to earn a degree in loan processing and accounting through its Bachelor of Science in Accounting Program. The course also covers other areas such as financial analysis, business strategy, and taxation, etc.

This program is designed in association with MS Global Partners, which is an international leader in the field of accounting. The program provides students with various benefits, including internships, work experience, and online classes. It has campuses spread across twenty-eight countries.http://www.aiuniv.edu/

Herzing College– This college offers diploma and associate degree programs in loan processing. The college has campuses spread across nine states and offers residential facilities to its students. The program provides students with the practical experience needed for a career in this field.
Everest College– This college provides students with single courses and certificates in loan processing. The college has campuses spread across twenty-seven states and offers an accelerated program in this area. Students at the college can also study for a bachelor’s degree in accounting or finance while focusing on this area. http://www2.everest.edu/
Northcentral University– This university provides students with online and on-campus training in this area. It offers an accelerated program that can be completed within one year and has excellent career opportunities for its graduates. The college also provides students with the option of academic credit transfer if required. http://www.ncu.edu/
University of Phoenix– This university provides a comprehensive curriculum covering all areas of loan processing. It also provides students with the option of online and on-campus education. The college has over 300 locations across twenty-nine states and offers flexible class schedules. Students at this university can also opt for a master’s degree in marketing or finance while studying loan processing as an area of concentration. http://www.phoenix.edu/

Conclusion

Loan processors are in charge of processing loans for borrowers. They process applications, take loan payments and keep track of the borrower’s repayment history to make sure they can continue paying back their debts. Loan processors generally work with banks or other lending institutions with an established network of branches throughout a state or country. If you enjoy working with numbers and solving problems, then this might be the career path for you!