Loan Processor: Career Profile, Occupational Outlook, and Education Prerequisites

Explore the career requirements for loan processors. Get the facts about the occupational outlook, job duties, salary and education requirements to determine if this is the right career for you. Schools offering Accounting & Finance degrees can also be found in these popular choices.

What Is a Loan Processor?

Loan processors are specialized financial clerks, sometimes known as loan interviewers. Much of the training for this career is done on the job. Classified as a financial clerk, loan processors perform many clerical duties that include keeping financial records up to date, computing charges, offering customer assistance and carrying out financial transactions. They also interview loan applicants to obtain financial information needed to complete an application and prepare loan application documents for a loan officer or appraiser. Being a loan processor provides the opportunity for you to advance to become a loan officer, who evaluates the loan applications for approval. Check out essential career information for loan processors below.

Education Required High school diploma or GED; postsecondary certificate programs available
Key Responsibilities Assist customers in applying for and obtaining loans
Job Growth (2014-2024) 9%*
Median Salary (2015) $37,710*

Source: *U.S. Bureau of Labor Statistics

What Will I Do as a Loan Processor?

Your overall responsibility as a loan processor is to help customers navigate the loan application process. In the initial phase, your duties includes interviewing potential customers and answering their questions about loan options; verifying the accuracy of customers' personal and financial information and the value of the collateral they provide; calculating interest, closing costs and repayment schedules; and filling in loan forms. For the closing phase, you compile insurance forms, tax forms, loan forms and closing forms; submit application files; and notify customers whether the lender has approved or rejected their application.

What is the Employment Outlook?

According to the U.S. Bureau of Labor Statistics, approximately 213,800 loan processors were employed in 2014. Over the 2014-2024 decade, employment is projected to rise nine percent to about 232,300. The median annual salary as of May 2015 was $37,710.

Most of your job opportunities will arise from general population growth and the accompanying rise in economic activity, but the need for your services will be inhibited by expanded use of online loan applications. Having a solid set of phone, math and customer service skills will give you a better chance of securing a position.

What Education Would Help Me?

The minimum you need to get started as a loan processor is a high school diploma or GED, but some employers may prefer you to have completed some college courses. Whether or not you attend college, your employer will likely have you participate in on-the-job training sessions to teach you relevant loan processing laws and in-house processing procedures.

Many community colleges offer certificate programs that explain the principles of loan processing. Such programs should cover loan regulations, the different categories of loans and methods used to fill out and submit loan applications. Courses also cover debt ratios, credit history investigation, credit report analysis and fraud detection. Programs tend to be oriented either towards the real estate, banking or mortgage loan markets.

What Are Some Related Alternative Careers?

As previously mentioned, loan processors may advance their career and become loan officers. While taking on many new responsibilities, loan officers may still keep some old ones, such as interviewing applicants and maintaining documents. Other careers related to loan processors include those of bill and account collectors, auditing clerks and information clerks. Bill and account collectors must maintain accounts, calculate charges and complete financial transactions. Auditing clerks complete bookkeeping tasks, such as recording financial transactions, updating statements, and checking financial records for accuracy. Information clerks are tasked with maintaining records, collecting data, and providing information to employers and clients.

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