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Loan Processors

History

Lending practices can be traced back to the earliest human civilizations. Ancient Babylonian clay tablets, some dating as early as 2000 B.C., included promises such as “two shekels of silver have been borrowed by [borrower]. He will pay Sun God’s interest. At the time of harvest, he will pay back the sum and the interest upon it.”

In 1781, the Continental Congress chartered the first bank of the United States, the Bank of North America. It was established to print money, purchase securities (stocks, bonds, and options) in companies, and lend money.

The General Motors Acceptance Corporation began offering car loans in 1919. Many early auto loans required buyers to put 35 percent of the cost of the vehicle down and pay the balance during the next year. Mortgages (at least the version of them we know today) became available in the 1930s. Federal government–backed student loans were first offered in the 1950s under the National Defense Education Act, which was passed in response to fears that America was falling behind the Soviet Union in regards to technology and, specifically, in the Space Race. These loans were only available to students who planned to study science, engineering, or education. As the number, types, and complexity of loans increased, demand for loan processors also grew. Today, loan processors play an integral role during the loan application process.

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