Loan processors are highly adaptable and organized multitaskers who help families and organizations secure the crucial funds they need. Why is this role so in demand right now?
For one, the CARES Act opened up over $2 trillion in economic relief for small businesses, and many are taking advantage — but to do so, they often need to interact with loan processors first. As a direct result, hiring opportunities for these professionals are plentiful.
Plus, according to the U.S. Bureau of Labor Statistics, employment opportunities for loan officers in general are projected to grow eight percent by 2028, which is faster than average for all occupations. And better yet, it's one of many roles that's rapidly switched over to an all-virtual model on account of COVID-19, so it's a safe bet that those new opportunities are going to remain plentiful going forward.
What do loan processors do on a day-to-day basis? All of the following tasks fall within their bailiwick:
- receiving loan applications, entering files and uploading documents into a database
- pre-underwriting files and flagging them for pre-approvals or submissions
- sharing and following up on lists of needs with clients
- ensuring files move through the workflow in a timely manner, and that closings happen on time
- troubleshooting and putting out fires as needed
- building relationships with realtors and other stakeholders
- safeguarding the privacy of sensitive documents and client data
- ensuring broad-based compliance with all applicable regulatory requirements
how do you become a loan processor?
Loan processors typically come to the role from related or ancillary positions in the accounting and finance space. Beyond that, we've broken down a few of the key qualifications and requirements for anyone who wants to become a loan processor below:
- high school diploma or equivalent
- 2+ years of experience working in banking, finance or the mortgage industry
- knowledge of how to pull borrower credit
- familiarity with how loans are structured
- expert understanding of Fannie, Freddie, FHA and VA guidelines
- experience running automated underwriting systems (AUS) such as Desktop Underwriter (DU) and Loan Prospector (LP)
- baseline math aptitude to calculate loans
Pro tip: When browsing job descriptions, try to make note of which skills are "nice-to-have" (but not essential) and which are "must-haves" (essential) for the role. This is important, because not having the former won't necessarily preclude you from landing an interview.
what are the key skills of a loan processor?
One of the reasons that loan processors are so sought after is that their contributions directly impact the revenue functions of their employers. And while you'll certainly need to meet all of the requirements listed above in order to succeed, that doesn't necessarily mean that showcasing a few soft skills won't advance your candidacy.
Can you showcase the following soft skills on your resume? Doing so just might help you stand out amidst the sea of applications in today's highly crowded job marketplace:
- analytical thinking
- strategic thinking
- problem solving
- team player
- written and verbal communication skills
- organizational and time management aptitudes
how much does a loan processor make?
From a compensation standpoint, loan processors may encounter a lot of variation on the job market today. To help simplify things, we looked at the latest data and found that average salaries for these financial pros can be grouped into three tiers: low, middle and high.
Ultimately, what you should expect from a compensation standpoint will be contingent on a number of different factors, including the scope of the role as well as your location, market, seniority and areas of expertise.
Looking for a deeper dive into the latest and greatest salary data? Head on over to our free salary comparison tool. There, you'll find in-depth and at-a-glance intelligence about pay rates for loan processor er roles across locations and markets.
For all of the reasons we have discussed — and then some — loan processors are among the most in-demand professionals in the accounting and finance space today.
- what loan processors do
- background, training, experience and other requirements for this position
- key skills
- and more!
Ready to land your next great role as a loan processor? Start searching for loan processors jobs today. Alternately, if you're considering a career change, be sure to check out these in-depth breakdowns of other booming jobs in accounting and finance. You'll find actionable guidance on exactly what steps you need to take to make your next move today.