What is a loan processor?
A dedicated loan processor, is responsible for processing loan applications and preparing them for loan underwriters. They are required to gather all necessary documentation required for a loan application and to organise the application for submission so that when a loan underwriter goes to decide if an applicant meets the requirements to approve a loan, all the information is easily accessible to make that decision. The difference between a loans officer and loan processor is the first can negotiate or offer mortgage rates and loan terms while the latter cannot.
Loan processor duties and tasks can include:
- Reviewing loan submissions and ensuring all required documentation is received from loan or mortgage applicants
- Organising loan documentation for submission
- Liaising with key stakeholders/brokers to ensure all processing requirements are satisfied
- Communicating with loan applicants to receive all documentation and assess financial eligibility and feasibility of granting loan applications.
These loan processing tasks are particularly well-suited to being outsourced as they are repetitive and rules-based, requiring a high level of attention to detail. By sending these transactional finance tasks out to an outsourced loan processor, organisations can free up their local team’s time to focus on performing value-added, revenue generating work.