Loan Processor Job Description: Top Duties and Qualifications

A Loan Processor, or Mortgage Loan Processor reviews loan applications and checks them against set criteria to help lenders determine applicants’ eligibility for credit. Their duties include assessing loan applications, checking that the details provided are correct and preparing files to pass over to the bank, building society, credit union or other lenders for approval. 

 

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Loan Processor duties and responsibilities

Loan Processors increase the chances of securing credit for applicants and reduce the workload for lenders. Their duties and responsibilities typically include:

  • Reviewing applications to ensure that all the relevant paperwork has been submitted
  • Checking loan-to-value and debt-to-income ratios
  • Completing detailed affordability assessments
  • Requesting credit checks on applicants
  • Issuing paperwork such as loan agreements and terms and conditions
  • Dealing with enquiries from applicants and lenders
  • Maintaining accurate records of all activity on each account
  • Working to deadlines for submission of paperwork

 

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Loan Processor skills and qualifications

Loan Processors have a great deal of responsibility. A successful Loan Processor candidate will have various prerequisite skills and qualifications that typically include:

  • Excellent interpersonal skills
  • Attention to detail
  • High-level numeracy and an understanding of financial processes
  • An understanding of credit scores
  • Expert knowledge of databases, word processors and spreadsheets
  • Proven customer service skills

 

What does a Loan Processor do?

Loan Processors perform a vital role between customers who need credit and lenders that want to offer them loans. They receive information from Loan Officers and Mortgage Brokers and ensure that the borrower has included all the necessary information required. They may ask for details of applicants’ finances, proof of their employment status and check them to identify and rectify inconsistencies. Loan Processors play a critical role in getting finance approved by flagging issues at the early stages of the application and ensuring that Underwriters are given all the information they need to approve the loan.   

 

Loan Processor experience requirements

Loan Processors need experience of working with figures, so any previous role involving accounting, bookkeeping or maintaining financial records will be an advantage. Candidates who have worked in retail or other sales roles will have an advantage, especially if they have been responsible for dealing with confidential information and sensitive data. Loan Processors work closely with internal and external stakeholders, so experience as part of a team or a role involving collaborative working is beneficial. 

 

Loan Processor education and training requirements

Loan Processors typically have a degree in finance or another relevant field, but qualifications in any aspect of lending or credit are an advantage. There are entry-level Loan Processor roles that require candidates to have GCSEs in maths and English, or equivalent, but offer significant on-the-job training and support. Applicants who have completed any qualifications recognised by the Financial Conduct Authority will have developed a range of suitable skills and a helpful understanding of the world of finance.

 

Loan Processor salary expectations

According to Indeed Salaries, the average salary for a Loan Processor in the UK, is £19,695 per year. This depends on their level of experience, the area of the country in which the role is based and the level of specialist knowledge required.

 

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Loan Processor job description FAQs

 

What qualities make a good Loan Processor?

Loan Processors need to be organised and methodical in order to complete the processes required for the role. They need to work to tight deadlines, so the ability to stay calm and focused under pressure is important. Loan Processors with an interest in and an understanding of the wider world of finance are in a better position to assist their clients and this knowledge can be very helpful.

 

What should you look for in a Loan Processor CV?

Candidates with experience of working in banking or financial institutions will have experience of how the systems and processes work, but any applicant with a track record of exceptional customer service will be an asset in a Loan Processor role. Candidates who have experience working in specific sectors, such as mortgages or car finance, will have specialist skills that could make them invaluable.

 

Who does a Loan Processor report to?

Loan Processors working in larger organisations may report to a Team Leader or Manager, but those in smaller companies may work directly with an individual broker or support. Loan Processors liaise with clients and underwriters, so they may have to provide progress reports to a number of stakeholders. Finance is a highly regulated industry, so Loan Processors may also be required to provide information to a regulator or industry body.

 

Do Loan Processors have different responsibilities in different industries?

There are Loan Processors working in a variety of industries and settings, while many aspects of the job are similar, there are industry-specific skills that can make a candidate stand out. For example, Loan Processors trying to secure mortgages for their clients will need to know about property purchasing processes, whereas one working in car finance will be familiar with vehicle insurance regulations and licensing requirements. 

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