What is a Mortgage Loan Processor
A mortgage processor assembles, administers and processes loan application paperwork.
The primary responsibility of a mortgage loan processor is to ensure the smooth and efficient processing of mortgage applications from initiation to closing.
What is a mortgage processor?
A mortgage processor, also known as a loan processor, is responsible for the administrative tasks and paperwork required to get loans approved. They play a key role in whether a loan application gets approved.
Mortgage processors work closely with loan officers, underwriters, and other stakeholders to gather, verify, and organize the necessary documentation to facilitate the approval and funding of mortgage loans.
What does a loan processor do?
A loan processor is a professional responsible for thoroughly examining loan applications, assessing credit standings, and finalizing loan contracts. They play an intermediary role between clients and financial institutions, ensuring timely loan approvals and protecting the organization's credibility.
Roles, responsibilities, and skills of a mortgage processor
Review financial documents
Request items from credit reports
Request written verification of application information
Order title work and appraisals
Work with the underwriter to clear conditions
Help prepare the loan file for closing
Analyze, appraise, and evaluate loan applicants
Ensure the loan stays on schedule to close on time
Setup appointments for closing
Timely communication with loan officers, underwriters, and borrowers
Note: Most states require a license to practice as a mortgage loan processor, so research what the requirements in your state are so you can have the correct licenses and provide your services legally. You also have a requirement to earn a license through the National Association of Mortgage Processors (NAMP), which provides training to aspiring loan processors.
How to become a loan processor
The key to becoming a loan processor is developing a skill set that is diversified and works well in the financial industry. Gaining as much experience as possible through on-the-job training sessions and online financial courses will set you up to be more of an appealing hire.
A high school diploma is usually the minimum educational requirement at many loan companies.
Obtain your mortgage license. To receive your mortgage license, you must complete the National Association of Mortgage Processors (NAMP) comprehensive online mortgage processing training and test.
Computer software, data entry, math, and communication skills are recommended.
Most of a loan processor's training is on the job. A loan processor typically works at credit unions, mortgage lenders, and banks. From there, you'll receive on-the-job training.
What's the difference between a loan processor and an underwriter?
Although both processors and underwriters are involved in the mortgage application process, the two roles have separate roles. The loan processor ensures you have all the proper loan documentation organized to apply for the loan. The underwriter's duty is to analyze whether you can make the necessary monthly mortgage payments and decide if the loan will be approved.
Disclaimer: The above is provided for informational purposes only and should not be considered tax, savings, financial, or legal advice. All information shown here is for illustrative purposes only. All views and opinions expressed in this post belong to the author.