Education and Training Requirements
Business, statistics, economics, accounting, and mathematics classes will provide useful preparation for a career as a loan processor. English and speech courses will help you to develop your communication skills, which you’ll use frequently when dealing with loan applicants and colleagues. Other recommended classes include computer science, history, social studies, and foreign language.
A minimum of a high school diploma is required to become a loan processor, although some employers prefer to hire applicants with at least an associate’s degree. Typical college majors include business, business administration, and finance.
Banks and other employers provide on-the-job training to new hires that typically lasts from three to six months.
Other Education or Training
The National Association of Mortgage Processors offers live instructor-led and recorded mortgage processing training classes such as Commercial Processing and Underwriting 101, Advanced Commercial Processing and Underwriting, and Mortgage Fraud Awareness and Prevention. The American Bankers Association offers continuing education courses such as Basics of Mortgage Processing, Mortgage Customer ?Counseling and Prequalification, Preparing the Closing Disclosure, Fundamentals of Mortgage Lending, and Law and Banking: Principles. Contact these organizations for more information.
Some colleges and universities offer certificates in loan processing or related fields. Contact schools in your area to learn what type of certificate programs are available.
Certification, Licensing, and Special Requirements
Certification or Licensing
The National Association of Mortgage Processors offers the following certification credentials to those who complete continuing education classes, successfully pass a third-party background check, and pass an examination: certified mortgage processor, certified master loan processor, and certified ambassador loan processor. Visit https://www.mortgageprocessor.org/certified-mortgage-processor for more information.
Mortgage loan processors are often required to register with the Nationwide Mortgage Licensing System and Registry.
Experience, Skills, and Personality Traits
No experience is needed to work as a loan processor, but those with prior work experience in customer service, banking, or finance will increase their chances of landing a job, getting promoted, and possibly earning higher pay.
Loan processors must be extremely organized and detail oriented because if they make mistakes or fail to account for all of the necessary loan documents, the loan application will be delayed—and it takes a lot of effort to fix issues after the file has gone to the underwriter. They also need strong time-management skills because application materials must be promptly processed and turned over to the underwriter in order to keep the loan application process moving. Failure to meet a real estate closing date can result in lost business and withdrawn offers. Loan processors also need excellent communication and interpersonal skills because they frequently interact with loan applicants (and must be able to explain sometimes complex documents to customers), title and escrow companies, loan originators, and loan underwriters. Other important traits include the ability to work effectively under pressure, strong ethics, and good problem-solving ability. Finally, loan processors need detailed knowledge of loan processing, underwriting, and closing procedures; proficiency in Outlook, Excel, Word (Microsoft) or similar software; and expertise in the use of loan processing and management software such as Encompass (Ellie Mae), OnBase (Hyland Software), and Point (Calyx Technology).