A Loan Processor, also known as a Mortgage Processor, is the person who is responsible for collecting all of the information and paperwork that is needed to approve a loan application. Numerous criteria, such as level of education, professional certifications, unique abilities, and years of experience in the field, contribute to a wide compensation range for these individuals. Let us know about salaries for Mortgage Loan Processor and professional requirements for Mortgage Loan Processor in this article.
Salaries for Mortgage Loan Processor
In the United States, the median annual salary for a mortgage loan processor is $38,166. Mortgage loan processor salaries range from $37,710 (the middle 57%) to $56,400 (the top 86%) annually. Salary for mortgage loan processors is highest in Los Angeles, at $38,761 per year, which is 2% higher than the national average.
Job brief of a Mortgage Loan Processor
- Analyzing an application in broad strokes (financial documents, mortgage type etc.)
- Advising the customer on the best mortgage option
- Collecting all relevant information from the client (assets, debts etc.)
Professional requirements for Mortgage Loan Processors
They are usually responsible for handling customer files and guiding them through the application process. They will compile all mandatory paperwork and inspect it for errors to ensure the mortgage is approved.
To be successful in the field of respective loan application processing, attention to detail is essential. They will be the connecting link between the company and its clients, partners, and underwriters, so good customer service and excellent communication are some required skills. Processing mortgage loans require a head for numbers and the ability to multitask efficiently.
- Examine the application in its entirety, including the supporting paperwork and the type of mortgage being requested.
- Assist customers in determining the best mortgage option
- Obtain the client’s full cooperation in gathering all relevant information.
- Make sure everything checks out by talking to the correct people!
- Fix discrepancies and look into errors.
- Before you put the file away for good, make sure you review it one last time.
Competencies and pre-requisites
- Proven work history in the mortgage loan processing industry or a closely related field Familiarity with the underwriting and processing steps involved in securing a
- Insight into applicable regulations and industry standards
- Expertise in mortgage loan software (e.g. Calyx Point)
- Superior ability to interact with and serve customers
- Highly meticulous, well-organized, and able to work under pressure
- A proficiency in mathematics
At banks and other financial institutions, they facilitate communication between customers and the underwriters who evaluate the applications. To avoid delays, it is their responsibility to double-check the applications for accuracy and completeness before sending them on to Underwriters for risk assessment and background checks. Between the Loan Officer and the Underwriter, the Loan Processor is the go-between who verifies compliance with lending standards and all necessary pre-documentation criteria.
The importance of training for loan processors
To work in the sector of loan processing, you need to have a high school diploma or a General Equivalency Diploma at the very least. When trying to fill the position of Loan Processor, some companies give preference to candidates who have an associate’s degree in finance as their educational background of choice. It is absolutely necessary to have a bachelor’s degree in finance or economics if you want to progress in your current position as a Loan Processor and move up the career ladder. It is possible for loan processors to increase their marketability by participating in accessible training and certification programs. Certificate holders are required to have access to ongoing training and education opportunities in order for their certification to remain valid.
Required work experience for a Loan Processor
A year of work experience in a customer-facing capacity in banking or finance is preferred for entry-level Loan Processors. Banking or customer service background is a plus. Loan processors that handle commercial loans or other sophisticated applications need at least a year’s worth of experience in the field. Leaders and senior Loan Processors need at least three to five years of experience. In most cases, a bachelor’s degree is accepted in place of at least some work experience at any level.
The following certification programs are not prerequisites to becoming a loan processor, but they can help you gain insight into the field and prepare you for the job. The National Association of Mortgage Processors administers the exam and offers three distinct certification tiers to candidates:
Licensed as a purple-level processor
A Certified Purple Processor is an entry-level certification. It takes 12 hours of training, including 6 hours of both fundamentals and advanced, to get a CPP in the loan processing field. Candidates are subject to a background check and must get an 85% on the CPP exam.
Certified expert Loan Processor
The Certified Master Loan Processor credential is the next rung up the qualification ladder. The loan processor must complete a minimum of 24 hours of training in four categories to achieve this certification. There are four types of loans that can be processed: 1) standard loans, 2) jumbo loans, 3) loans backed by the Federal Housing Administration (FHA), as well as loans backed by the Veterans Affairs Administration (VA), respectively (VA). The CMLP has a similar cutoff to the CPP at 85%, and candidates must pass a background check.
Certified Loan Processor ambassador
The Certified Ambassador Loan Processor credential is the pinnacle of industry recognition. In order for a loan processor to earn this certification, they must complete a training course that is a minimum of 42 hours long and cover all four of the topics that are covered on the Certified Mortgage Loan Processor exam, as well as the FHA’s special rehab program, tax return analysis, and mortgage fraud awareness and prevention. Candidates for CALP certification must also pass a background check and get a score of at least 85%.
Mortgage Loan Processor’s Tax Obligation
The average federal tax for an individual in this tax group is anticipated to be 12%. Mortgage Loan Processors can expect an annual salary of $33,777, or about $1,407 every pay period after paying taxes at the federal level of 12%.
As part of the National Mortgage Banking team, the Mortgage Loan Processor will be responsible for processing mortgage loans. Mortgage loans are processed in accordance with the bank’s policies and processes, with origination coming both from within the bank and from outside leads provided by the bank’s internal sales team. Bonuses and commissions are offered to some loan processors. Experience, education, and geography are all factors in determining pay.
Frequently Asked Questions
1.Can One Expect to Receive a Commission as a Loan Processor?
A loan processor may receive a commission on closed loans. In large part, this will be determined by the terms of their compensation packages.
2.How are a Loan Processor and a Loan Officer different?
Both Loan Processors and Loan Officers are crucial to the lending industry, yet they do various types of labor.
3.Is It Difficult to Process Loans?
It is a challenging and very rewarding job, and many people in the loan industry claim it as their best job overall.