What Are the Job Duties of a Mortgage Loan Processor?
Research what it takes to become a mortage loan processor. Learn about: the duties of this job, the education requirements and salary range to find out if this is the career for you.
What is a Mortgage Loan Processor?
A mortgage loan processor or loan officer evaluates applicants' financial information and real estate values to match prospective buyers to property purchases. This often involves meeting directly with loan applicants and real estate agents to obtain necessary information and documentation. When meeting with applicants they often need to explain what loan options are available to them. Toward the end of the process, they look over loan agreements to determine if they meet federal and state regulations. The following chart provides an overview of the education, job outlook and average salary in this field.
|Degree Required||Bachelor's degree|
|Education Field of Study||Business administration, finance, communication, marketing|
|Key Responsibilities||Analyzes applicants' financial status and ability to repay loans, communicate with real estate companies to assess property values|
|Job Growth (2018-28)||8% (for all loan officers)*|
|Median Annual Salary (2018)||$63,040 (for all loan officers)*|
Source: *U.S. Bureau of Labor Statistics
Mortgage Processor Duties Overview
According to Monster.com job postings in April 2011, the primary job duties you'd have as a processor include writing, organizing, inputting and approving the financial data on mortgage applications. Because the applications are different for different loans, you'd also need to choose the one that best suits the prospective homeowner. The intricacies involved with choosing the appropriate loan often comprise employment history, the applicant's assets and his or her liabilities. Credit bureaus and previous employers may be called upon to gather this information.
Your work would also involve communicating with real estate companies to assess the property value and to check for discrepancies. If you find no discrepancies and the all other applicable criteria are met, you'd approve the loan seeker's application. The approved application is then sent for underwriting with a loan closer, who'd finalize the deal.
To carry out your duties, you'd typically follow three major steps. You'd begin by setting up each application and follow that with validating the loan information and finally seeing whether or not the application passes the ¬guidelines for approval.
Set Up the Loan Application
To set up a loan application, the you must determine the applicant's income, assets and liabilities. You'd also go over the projected expenses associated with the house in question. Working with your client, you'd determine the purpose of the loan and explain the loan's terms to him or her. Additional points you may cover in this step include the following:
- Type of mortgage
- Property information
- Borrower information
- Employment information
Verify the Information
To verify the borrower's information, you'd contact credit companies, the applicant's employer, the seller, appraisers and other specified companies. They verify information you collected from each applicant, including income, employment status and net worth. Survey and appraisal data from the property to be purchased will also be covered in this step.
In the final step of processing a mortgage loan, you'd determine whether to approve or deny the application based on the acquired data. To make this decision you'll review the loan package and the property's closing conditions. You'd then submit the approved application to the lender and contact a loan closer to seal the deal.
What Are Some Related Alternative Careers?
Closely related to this career, financial examiners specialize in examining lenders and applicants finances to ensure loan transactions meet regulations. Given the need to analyzes applicants financial statuses, the profession of mortgage loan processors has some overlap with that of financial analysts, as well. Financial analyst assess individuals' and companies' finances to make financial advice, especially when it comes to investing. Financial managers need to be knowledge of many of same topics these other professions are, because their primary goal is to direct investments in a way that ensures the financial health of an organization or business.