Loan Processor Job Description: Top Duties and Requirements

A Loan Processor, or Loan Officer, is responsible for organizing loan applications from both businesses and individuals, essentially acting as a liaison between applicants and financial institutions. Their duties include researching loan applicants, evaluating loan applications, and finalizing loan documents and applications for submission.

Build a Job Description

Loan Processor duties and responsibilities

A Loan Processor is expected to fulfill multiple duties and responsibilities, including:

  • Research applicants for loans
  • Gather data on employment, credit status, and anything relevant to financial positioning
  • Prepare paperwork and maintain documentation
  • Submit completed files to the Underwriter for risk evaluation
  • Follow up with applicants to verify information
  • Make recommendations regarding suitable loans
  • Complete loan contracts within established rules and requirements
Build a Job Description

Loan Processor Job Description Examples:

 

Example 1

Job Description LendCare is a Canadian consumer finance and technology company, which enables over [phone number]businesses to increase their revenue by providing full credit spectrum financing at the point-of-sale. For over a decade, LendCare has cleared a path to providing fast, reliable, and affordable financing options for the Powersports, Auto, Retail, Home Improvement and Health sectors, while processing over $5 billion in loan applications to date. With a dedicated team of finance experts and partnerships with merchants, top dealerships, and brokers, LendCare bridges the gap between credit score and customers living their best life. *Job Description: * Responsible for processing loan applications, credit bureaus, and other required documentation to help generate a lending decision to approve or deny loans following LendCare’s guidelines and policies. LendCare is a fast-growing company looking for individuals who can strengthen our position in an ever changing marketplace. · Reviews loan documents to ensure that they are complete, accurate, and within LendCare's policies and procedures. · Maintains constant awareness for loan product and system improvements to enhance service and production. · Perform initial appraisal of potential borrowers by thoroughly examining their applications. · Conclude on all applicable financial and non-financial criteria and develop loan repayment plans. · Loan processors must be able to verify all documentation provided by the applicants when they applied for a loan. This includes pay stubs, income tax returns, bank accounts and other documentation. · Follow up with merchants to clarify important points *Skill Requirements: * · Must have strong communication skills both written and orally · Attention to detail a must · Strong customer service skills *Benefits: *Company paid benefits *HOURS ARE Monday-Friday 1:00PM-9:00PM, WITH Saturday Shifts AS Required. DO NOT APPLY IF YOU Cannot WORK THESE HOURS.* Job Types: Full-time, Permanent Job Types: Full-time, Permanent Benefits: * Extended health care Schedule: * 8 hour shift Experience: * Customer Service: 1 year (required) Work remotely: * No

What does a Loan Processor do?

Loan Processors analyze and compile loan applications before they’re submitted to a financial institution, where they will be examined by an Underwriter. Loan Processors spend most of their time gathering and organizing information to ensure that loan applications meet all the requirements set by financial institutions. These requirements include employment verification, bills, bank statements, income information, and more. After gathering all the necessary information, a Loan Processor organizes it in a file, making it easy for the Underwriter to access everything they need.

Loan Processor skills and qualifications

To perform their duties effectively, Loan Processors need to possess a particular set of skills, including:

  • Written and verbal communication skills with a knowledge of underwriting terminology
  • Knowledge of loan processes, documentation, and general closing procedures
  • Computer literacy including proficiency with loan origination software and the Microsoft Office suite
  • Effective time management and prioritization skills
  • Analytical thinking and research skills
  • Customer service and active listening skills

Loan Processor experience requirements

Look for candidates with at least two years of experience dealing with loans directly in the consumer loan industry. Keep in mind that applicants don’t need to have specific Loan Processor experience to have garnered the required experience. However, for larger financial institutions you may prefer candidates with this exact title in the past. A Loan Processor is not an entry-level position, so formal education isn’t a substitute for experience.

Loan Processor education and training requirements

Education requirements for a Loan Processor can vary but, generally, a bachelor’s degree in finance, accounting or another related field prepares candidates well for the job. However, this education requirement could be replaced with extensive experience in the same industry. What matters most is the candidate’s familiarity with the financial loan process, and that doesn’t have to come from their formal schooling. If you provide on-the-job training for candidates with an extensive, in-depth understanding of finances and loans, a candidate should be able to learn quickly.

Loan Processor salary expectations

According to Indeed Salaries, the average salary for a Loan Processor in Canada is $42,734 per year. Actual salaries can vary based on experience, education, the company, and the location of the job.

Job description samples for similar positions

If a Loan Processor isn’t quite what you’re looking for, check out some similar job descriptions including:

Ready to Hire? Build a Job Description

Loan Processor job description FAQs

Can a Loan Processor deny a loan?

If you’re looking to fill a position responsible for loan approvals and rejections, the title of Loan Processor might not be it. For the most part, actual approval and denial is a task done by an Underwriter. The Underwriter is the one who determines the risk associated with the loan based on the information gathered by the Loan Processor. The claim is then approved or denied based on the Underwriter’s recommendation.

What qualities make for a good Loan Processor?

When you’re looking for a Loan Processor, it’s best to keep an eye out for candidates’ knowledge of the process and attention to detail more than anything else. Loan Processors are most useful when they’re able to do their job quickly and accurately. This means applicants will need to be intimately familiar with the loan process so they know exactly what information they’re looking for and how to organize it properly. Additionally, they’ll need to be exceptionally organized, as the bulk of their work involves organizing files and documents for the Underwriter.

What's the difference between a Loan Processor and an Underwriter?

Loan Processors and Underwriters work together in the approval process, but they have distinct responsibilities. A Loan Processor mostly works to organize documents and gather information to make the Underwriter’s job easier. The Underwriter conducts a more rigorous analysis of the applicant’s information to determine exactly how much of a risk it would be for the financial institution to approve the loan. Their work essentially determines whether the loan will be approved or denied. Meanwhile, a Loan Processor’s job is organizational, with fewer analytical requirements.

How do you make a Loan Processor job description stand out?

To make a Loan Processor stand out and attract the best candidates, provide a comprehensive list of the role’s key duties and responsibilities. Detail the kinds of loans your organization offers, and the type of customers you typically help. For example, businesses or individuals, mortgages or personal loans. Highlight the need for candidates with expert organizational skills, research skills, and attention to detail. Featuring a competitive salary and company benefits is another way to make your job description stand out.

Job Description Examples

Need help writing a job description for a specific role? Use these job description examples to create your next great job posting. Or if you’re ready to hire, post your job on Indeed.

No search results found