If you have ever applied for a loan (mortgage, car, small business), you have worked with a loan processor — probably without even realizing it!
But what exactly does a loan processor do? More specifically, what are the ins and outs of mortgage loan processing?
If you want to get into the mortgage industry and are considering mortgage loan processing as a career path, here are a few things you need to know about what the processor role entails, what skills might be necessary, and the potential education and training requirements.
What Is a Mortgage Loan Processor Responsible for Doing?
The mortgage loan processor (LP) is the intermediary party between the lender and the borrower.
This includes gathering all application documentation and getting it ready for the mortgage underwriter. When a borrower submits their materials to be processed, the processor ensures that the borrower has included all the necessary documents, including income information, employment verification, and bank statements.
The LP is also responsible for verifying that all of the information that the borrower has submitted seems accurate. Activities associated with verification of loan application materials may include checking on the borrower’s employment status and confirming social security numbers and tax documentation.
The job also includes organizing the borrower’s information so that the underwriter can easily find and access the necessary documents and providing a clear and consistent story for the underwriter on the borrower income/employment, address, and credit history.
The LP is a go-between for the borrower throughout the process, and will follow-up on any requests from the underwriter for additional information, explanation, or documentation. The LP orders all third-party services (title/HOI/VOEs/appraisals) and have the responsibility of making sure all parties come together with their piece of the transaction and in time for closing.
Once the final approval is granted, the LP then works with title to facilitate balancing of the final numbers and scheduling closing.
What Skills Might a Processor Want to Have?
Because of all the minutia that the position entails, perhaps the most important skill that someone hoping to become a processor should have is attention to detail. What is a mortgage loan processor, if not detail-oriented?
Organization is also essential. When working with documents and communications from multiple clients throughout the day, it can be easy to mix things up. Being organized helps to minimize errors. (An easy-to-use dashboard that keeps everything in one place can help, too!)
Many successful processors are also excellent communicators, both in writing and verbally. Mortgage loan processors act as a sort of middle person between the borrower, the mortgage originator, and the underwriter, so communication comes from all angles.
Are There Any Education or Training Requirements?
While many employers require a bachelor’s degree in finance or accounting, some processors are able to fill their roles successfully with a high school diploma. Training certification programs are also available, but many employers will also offer on-the-job training.
Many loan processors start off as a loan officer assistant or loan processing assistant to gain experience, but having knowledge of any part of the transaction process is helpful and a good place to start. For example, if you were a title company processor or document specialist for a loan servicing company.
Experience in customer service, accounting, or finance could also be helpful.
Ready to Start Your Career as a Mortgage Loan Processor?
Do you think you have what it takes to be a mortgage loan processor? We are always looking for talented and passionate individuals to add to our #teamlo. Visit wemlo.io/careers to learn more and apply today!