You May Spend More Time Working With The Processor
- Its common to talk more with the processor than with the loan officer or broker
- Once you submit your loan application they may be your main point of contact
- Since LOs/brokers have to spend more time selling and finding new prospects
- The good news is processors are often very knowledgeable and hardworking
While the loan officer or broker may be the person who got you the loan to begin with, its the processor that will likely take over once youve been sold.
That sold part is pretty important because loan processors arent supposed to offer or negotiate mortgage rates or loan terms. Their role is to assist the originator, whose job it is to sell the rate/product, and organize the loan file.
However, some processors are actually more knowledgeable than the more sales-oriented loan officers because they handle more volume and may have more years of mortgage experience under their belt.
If the loan is originated via the wholesale channel , there are essentially two loan processors working together on the file.
One who works on behalf of the mortgage broker and one that works at the bank, typically referred to as an Account Manager .
The loan processor who works with the broker will essentially send conditions to the AM that works at the bank so they can be signed off.
If the loan is originated via the retail channel, the AM will work with the loan officer at the bank to get the conditions cleared.
You May Like: Current Usaa Car Loan Rates
How Much Does A Loan Processor Make In California
As of Aug 12, 2022, the average annual pay for a LOAN Processor in California is $53,741 a year. Just in case you need a simple salary calculator, that works out to be approximately $25.84 an hour. This is the equivalent of $1,033/week or $4,478/month.
While ZipRecruiter is seeing salaries as high as $82,420 and as low as $22,343, the majority of LOAN Processor salaries currently range between $37,238 to $56,602 with top earners making $69,511 annually in California.
The average pay range for a LOAN Processor varies greatly , which suggests there may be many opportunities for advancement and increased pay based on skill level, location and years of experience.
Based on recent job posting activity on ZipRecruiter, the LOAN Processor job market in California is not very active as few companies are currently hiring.
California ranks number 2 out of 50 states nationwide for LOAN Processor salaries.
To estimate the most accurate annual salary range for LOAN Processor jobs, ZipRecruiter continuously scans its database of millions of active jobs published locally throughout America.
Find your next high paying job as a on ZipRecruiter today.
Do Loan Officers Work From Home
Loan Officers work from home more in todayâs work environment than ever before. In 2021, 55% of companies offer work from home options. Additionally, review42.com reports that remote workers make on average about $4,000 more a year and 30% of all remote workers save about $5,000 a year from telecommuting.
Don’t Miss: Can You Change Your Mortgage Rate After Locking
What Should Mortgage Brokers And Loan Processors Get Paid
While an entry level position may pay about $55k plus super and commissions , mortgage brokers have a
One survey showed that 45 percent of firms paid between 76 basis points to 150 basis points commission on each loan. Each basis point is 1/100th
How Much Does a US Credit Processor Make? The median salary for a loan processor in the United States as of December 28, 2020 was $37,848, but
We found that your commission can range from 0.5 to 2.5% of the loan amount, on the general understanding that you can make more if you generate your own leads.
What’s The Average Salary Of A Loan Officer
Marcus Reeves is a writer, publisher, and journalist whose business and pop culture writings have appeared in several prominent publications, including The New York Times, The Washington Post, Rolling Stone, and the San Francisco Chronicle. He is an adjunct instructor of writing at New York University.
A loan officer represents a bank, , or other financial institution and finds and assists borrowers in acquiring loans. Loan officers can work with a wide variety of lending products for both consumers and businesses. They must have a comprehensive awareness of lending products and banking industry rules, regulations, and required documentation.
Loan officers review loan applications and analyze an applicant’s finances to determine who is eligible for a loan. They also educate consumers on loans, verify financial information, and contact individuals and companies to see if they apply for a loan.
Recommended Reading: What Is A Jumbo Mortgage Loan Amount
The Top Mortgage Processor Skills
Why its important
Mortgage Processors collect a huge quantity of data and usually handle more than one loan application at the same time. Therefore, Mortgage Processors need to have amazing organization skills in order to keep every detail and data in order.
Attention to Detail
Attention to detail is another essential skill for Mortgage Processors and it refers to their ability to quickly spot and detect any mistake, error, miscalculation, or inconvenience in the loan or applicant documentation. Great attention to detail is a skill that makes a difference between a good and average Mortgage Processor.
Mortgage Processors use their proper negotiation skills to gain and keep clients. Loans and information may change quickly, and Mortgage Processors need to convince and ensure borrowers that the loan is still a good idea and fulfill their satisfactory level.
Financial records and information could be a very broad and difficult topic. As a Mortgage Processor, you should have great research skills in order to investigate and learn about any detail that you are not familiar with, and therefore complete your task thoroughly.
What Are Top 10 Highest Paying Cities For Loan Processor Jobs In California
Weve identified 8 cities where the typical salary for a LOAN Processor job is above the average in California. Topping the list is Santa Clara, with San Francisco and Bolinas close behind in second and third. Bolinas beats the California average by 9.9%, and Santa Clara furthers that trend with another $7,800 above the $53,741.
With only a handful of cities paying above the average for California, the opportunities for economic advancement by moving to a new location as a LOAN Processor is a decision to make with some caution. Factoring in cost of living expenses should be considered as well.
Finally, another factor to consider is the average salary for these top 10 cities varies very little at 13% between Santa Clara and Indio, reinforcing the limited potential for much wage advancement. The possibility of a lower cost of living may be the best factor to use when considering location and salary for a LOAN Processor role.
Read Also: How Much Money Should Go To Mortgage
Quality Of Life For Mortgage Loan Processor
With a take-home pay of roughly $2,815/month, and the median 2BR apartment rental price of $2,506/mo**, a Mortgage Loan Processor would pay 89.03% of their monthly take-home salary towards rent.
What Happens During Mortgage Processing
When applying for a home loan, the buyer will work with a loan officer or mortgage broker, who acts as a mediator between borrowers and lenders. Once you apply for a home loan, the time between applying and closing is known as mortgage processing.
The lender reconfirms the home buyers records during mortgage processing to ensure accuracy and completion of all the necessary data. The process entails verifying the buyers information, ordering their credit reports and scheduling a home appraisal. The data found will determine your loan approval status.
Mortgage Loan Processor Roles
The National Association of Mortgage Processors says, The primary function of the Loan Processor is to ensure the timely and accurate packaging of all loans originated by loan officers. So its mostly an administrative role.
Mortgage loan processors typically:
- Collect and collate all the information needed to approve a loan and make informed decisions concerning an application
- Input that information into the lenders IT systems
- Verify information through documents you supply
- Make third-party checks with credit bureaus, employers, accountants and so on
- Order an appraisal of the home
- Obtain title insurance and flood insurance
- Ensure the compliance of your case with regulatory requirements and internal policies
- Order the final loan documents
- Ensure the loan stays on track to close on time
- Schedule appointment for closing
You can usually expect a mortgage loan processor to be involved throughout the application process: from pre-approval to closing.
How Much Money Does A Mortgage Loan Processor Make
How much do mortgage processors make in commission? What Is the Average Commission Mortgage Loan Processor Salary by State
The average mortgage loan processor salary in the USA is $50,000 per year or $25.64 per hour. Entry level positions start at $40,951 per year while most
In return for this service, the typical loan officer is paid 1% of the loan amount in commission. On a $500,000 loan, thats a commission of
You May Like: Is Mr Cooper A Real Mortgage Company
Next Loan Processors Order The Remaining Certifications
To close your loan, underwriters need to know the homes value and that the home is free of any liens.
Loan processors order the home appraisal to determine the homes value. The appraiser goes into the home and takes pictures of the interior and exterior. He determines the homes value based on what he sees and the comparable sales in the area.
The appraisers puts together an official appraisal report which he sends to the loan processor. The processors job is to follow up on the appraisal if its delayed or to clear up any questions or confusion with the appraiser.
Loan processors order the title work to look at the chain of ownership. Does the seller have the right to sell the property? Are there any liens on the property?
The processor works with the title company to clear up any issues. If there isnt a clear title, the processor finds out from the title company what you must do to clear the title. Underwriters can approve a loan to close without a clear title.
Underwriters need all this information to approve and close your loan.
Loan Processors Order your Closing Documents
Once the loan processor gets the green light from the underwriter, he/she gets your closing ready. The processor schedules the closing and works with all parties to make sure the necessary documentation, funds, and people are at the closing to make the loan happen.
Loan Processor Job Description Template:
We are searching for an experienced and highly-analytical loan processor to conduct assessments of business and individual loans. You will act as the liaison between potential clients and our growing financial institution, conducting client evaluations, researching credit records, and preparing loan package documentation.
In this position, your chief goal will be to help eligible applicants obtain loans in a timely and professional manner while protecting our institutions credibility. The successful candidate will demonstrate an in-depth knowledge of relevant rules and regulations. You should also have strong attention to detail with excellent communication and interpersonal abilities.
Recommended Reading: What Are The Interest Rates On A Mortgage
Work With Your Mortgage Team Together
The key is to work together with your mortgage team. Find a loan officer who you relate with and can answer your questions, matching you with the perfect loan. Then work closely with the loan processor to get your documents in and approved so you can be on your way with an approved and closed mortgage loan.
Your loan processor is the glue that holds the process together. He/she is your contact person for all your questions and concerns. The processor can get in touch with the underwriter and the loan officer within seconds to address your issues.
Recommended Reading: Can You Buy An Auction Home With A Fha Loan
Becoming A Real Estate Agent Or Loan Processor/originator
10 posts · 3 authorsIs the job of a loan processor fully commission based or are there experience and pay a salary not based on the sales or commission
loan processor salary with commission Answer : As a rookie, you could probably expect between 100 bps and possibly 150. Loan Officers made a median
Under the rule, compensation generally includes salaries, commissions, fees and any financial or similar incentive your credit union or your
Recommended Reading: What Is The Payment On A 200 000 Mortgage
What They Check
The following are some of the things that a loan processor will check before they sign off on the application and all of the information youve provided and move it on to the loan underwriter to begin the review process. Besides checking the veracity of the documents and the information contained within, they may contact you if any of the following information isnt provided.
Proof of Employment
You are required to be employed in order to qualify for a loan. This ensures that you will be able to make your monthly mortgage payments. The processor will check the employment information that youve provided and contact your current employer to verify that you do have a secure job. They may also verify your income when they speak with your employer as well to make sure that you can afford to take out a mortgage.
Proof of Assets
The loan processor will look over your statement of assets and debts. These should include current statements for all of your banking accounts as well as all investment accounts that youve listed on your application. They will also look at any loans that youre currently paying off as well. The loan processor may contact you if you dont have current statements for anything listed on your application. They may also request past statements.
Also Check: What Does Unsubsidized Loan Mean
What Do They Do
It can be easy to confuse the roles of a loan processor and a loan underwriter. A loan underwriter carefully evaluates the borrowers application and all of the documents along with it to determine whether the lender should approve the loan that was requested. Before they do this, the application and all of the accompanying paperwork must go through the loan processor, who checks to make sure all of the information provided is accurate and complete.
Also Check: What’s Refinancing A Mortgage
What Is The Average Salary For A Loan Officer Assistant
There isnt an average salary for a loan officer assistant, as it depends on too many factors from the company where the assistant is employed, if they work hourly or for an annual salary, and experience. According to the BLS, financial clerks who may do similar work as an assistant to a loan officer earn a median salary of $41,520.
What Is A Mortgage Loan Processor
A mortgage processor, also known as a mortgage loan originator or loan processor, sets up the borrower with the proper documents for the loan program they want to use. They guide the borrower through the first step of loan processing. Once the paperwork is finalized, the mortgage processor then passes it through to the underwriter.
Don’t Miss: What Does It Mean Refinance Mortgage
Glassdoor Economist Pay Overview
Jobs in finance and accounting are expected to see continued demand, with employment growth linked to the health of the broader economy. These jobs will continue to offer above average pay but usually require higher education or certification to enter the field. While automation will replace many common tasks, it is not expected to reduce the need for these employees it will instead allow them to focus on core soft skills like advising clients and analyzing trends.
How Much Tax Will You Have To Pay As A Mortgage Loan Processor
For an individual filer in this tax bracket, you would have an estimated average federal tax in 2018 of 12%. After a federal tax rate of 12% has been taken out, Mortgage Loan Processors could expect to have a take-home pay of $33,777/year, with each paycheck equaling approximately $1,407*.
* assuming bi-monthly pay period. Taxes estimated using tax rates for a single filer using 2018 federal and state tax tables. Metro-specific taxes are not considered in calculations. This data is intended to be an estimate, not prescriptive financial or tax advice.
Read Also: When To Refinance Your Mortgage Dave Ramsey
Mortgage Processor Job Description Template
Thursday, March 17th, 2022
Home » Mortgage Processor Job Description Template
Finding the perfect employee for your business is not an easy task. You want only the top candidates who fulfill your requirements and standards as an employer. But the question is, how to discover and recruit the ideal candidate? We are here to guide you in your recruitment process by offering you this FREE Mortgage Processor Job Description Template. This template is the impeccable resource for all the information that you need to know about this job title.
You can simply customize and adjust this template according to your special needs and requirements and attract only the best applicants. Finalize your hiring process by utilizing our VIVAHR Software!
Do Loan Processors Make Good Money
Yes, loan processors make good money. A loan processor’s average annual salary is $41,782 or $20.09 per hour.
On the lower end of the salary range, you may only make around $33,000, usually for entry-level positions. On the higher end, you can make around $52,000. Senior-level positions can earn you an average salary of $61,300 or more compared to mid-level positions of $45,000.
Also Check: Can You Get A Mortgage While In Chapter 13