Loan Processor

A loan processor is an individual who works under the instruction of a loan officer or mortgage broker and preforms only clerical functions such as gathering and requesting information, word processing, sending correspondence, or assembling files.

A good loan processor will know what things an underwriter will look for in a file in determining whether to make the loan or not.

Loan processors can make or break the deal. If they send a package in with a document that should be in there sometimes you cannot reverse what the underwriter has already seen. Such as income documentation that says something different than what the borrower is claiming.

A good and experienced loan processor is excellent training ground for a new loan officer. It's good to have a "good processor", but a "good and experienced" loan processor can take months and years of trial and error off of a "coachable" new loan officer.

A loan processor typically works behind the scenes and doesn't have direct contact w/ the clients. Many mortgage brokers hire processors so they can focus more on originating loans while processing handles many of the verifications and contact w/ underwriting.

Often it will be the processor who calls you for items the lender needs.

The loan processor will be the person that is in charge of all the paperwork. Also if there is anything mising usually you will receive a call from the processor.

Your loan officer and processor work as a team and have the same goal in mind, closing your loan. Always return phone calls quickly to the processor and get them documentation they ask for as soon as you possibly can.

A good processor will not submit a file without complete documentation required to approve your loan. If your loan has not been submitted for commitment, be sure to ask your processor and you loan officer what documentation is still outstanding.

There are many 3rd party companies that can process a busy loan officer's loans, for a fee of course.

A loan processor gathers the documents relating to the loan and will verify that the information is accurate and complete. Some mortgage brokers process their own loans, others hire a loan processor or outsource the job.

» DISCLAIMER: The information contained in this article on 'Loan Processor' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.