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Loan Processors

The Job

Once a loan application is completed, it’s the job of the loan processor to review the document and accompanying financial statements, clarify any confusing or missing information, and prepare the application for submission to the loan underwriter, who evaluates the application and approves or rejects it based on the applicant’s credit history, employment history, assets, debts, and other factors. Before the application is submitted to the underwriter, the loan processor has the following responsibilities:

  • manage the customer relationship from pre-approval to close status
  • ensure that all necessary loan documentation has been received, is accurate, and complies with company policy
  • verify loan documents, including everything from the applicant’s credit, employment status (W-2s, pay stubs, etc.), and assets (checking and savings accounts) to debt-to-income ratios, loan values, and reserves
  • calculate, review, and correct errors on interest, principal, payment, and closing costs
  • input customer information into the company’s loan processing system
  • schedule and conduct loan closings
  • contact loan applicants, lending officers, attorneys, realtors, credit bureaus, and other third parties to obtain information as needed
  • coordinate external activities with the title company, insurance agents, and appraisers and surveyors (when processing mortgage loans)
  • order property insurance or mortgage insurance policies to ensure protection against loss on mortgaged property (when processing mortgage loans)
  • be responsible for Home Mortgage Disclosure Act and Community Reinvestment Act reporting (when processing mortgage loans)
  • complete credit and appraisal analysis for the loan to ensure compliance with regulatory requirements
  • send the fact-checked loan application to the underwriter for final review and approval
  • occasionally act as liaisons between the mortgage banker and the underwriter
  • act in accordance with regulatory and compliance requirements that include, but are not limited to, Anti-Money Laundering and Terrorist Financing Reporting requirements, the Real Estate Settlement Procedures Act, and the Fair Credit Reporting Act
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