Consumer Loan Processor Job Description, Key Duties and Responsibilities

This post provides detailed information on the consumer loan processor job description, including the key duties, tasks, and responsibilities they typically perform.

It also highlights the major requirements you will need to fulfill to be hired for the consumer loan processor role by most recruiters/employers.

What Does A Consumer Loan Processor Do?

A consumer loan processor is charged with evaluating and processing loan applications applied for by individuals.

According to Salary, the major duty in the consumer loan processor job description involves meeting with the applicant to discuss their loan application and review the information provided.

They gather and verify the required documents, carry out credit analysis, and ensure adherence to lending regulations and internal guidelines.

A consumer loan processor’s job description usually involves gathering and examining loan application documents, implementing credit checks, and ascertaining employment and income information.

It also entails appraising collateral (if applicable) and ensuring compliance to underwriting standards.

Consumer loan processors are the middle man between the borrower and the loan institution, midwifing the loan approval process.

They usually report to a loan officer, underwriter or a branch manager in the lending institution.

Consumer loan processors are hired by banks, credit unions, auto finance, mortgage companies and other financial services that provide consumer lending products.

This position typically requires a high school diploma or equivalent, although some employers prefer applicants with an Associate’s or Bachelor’s degree in fields like finance or business, or similar programs.

The role comes with on-the-job training, and some employers value certifications like Certified Loan Processor (CLP) or Certified Residential Underwriter (CRU).

Other duties performed by consumer loan processors may include maintaining accurate records and documentation, providing admin support to loan officers or underwriters and communicating with borrowers, real estate agents and other parties involved with the loan process.

Countries with a vibrant consumer lending markets like the US, UK, and Canada can’t overemphasize the significance of the consumer loan process.

As consumer lending grows, there will be more demand for skillful consumer loan processors in these markets and even emerging markets as well.

Employers usually look for consumer loan processors with exceptional communication skills, keen attention to detail, and competence in data entry.

They also seek loan processors with computer skills, ability to work under pressure and understand and comply with lending regulations and requirements.

There are several national and local regulations that check the work of consumer loan processors, like Equal Credit Opportunity Act (ECOA), Truth In Leading Act (TILA), and Fair Credit Reporting Act (FCRA) in the United States.

Furthermore, loan processors must comply with state-level regulations as well as the internal policies of their employer.

Consumer Loan Processor Job Description Sample/ Example/Template

The consumer loan processor job description usually consists of the following duties, tasks, and responsibilities:

• Assess and scrutinize loan application documents, including personal IDs, income statement, employment records, tax returns, and other pertinent financial information
• Carry out credit checks and investigate credit reports to ascertain borrowers’ creditworthiness
• Check income and employment data by contacting employers, review pay stubs and other supporting documents
• Evaluate borrowers’ debt-to-income ratios and appraise their ability to repay the loan in line with underwriting standards
• Ensure adherence to national regulations like Truth In Leading Act (TILA), Equal Credit Opportunity Act (ECOA) and Fair Credit Reporting Act (FCRA)
• Make loan packages ready, categorize and assemble all necessary documentation for underwriter review
• Relate with borrowers to provide additional documentation or information as needed
• Work alongside third-party service providers, like appraisers, insurance providers and title companies to get relevant documentation and information.
• Keep accurate and current records and documentation all through the loan process
• Give answers to inquiries from borrowers, real estate agents and other parties that are a part of the loan process
• Make sure the loan files are complete and aligned with quality control standards
• Keep an eye out for loan pipelines and prioritize tasks in keeping with deadlines and production goals
• Give admin support to loan officers or underwriters as the need arises
• Stay up-to-date with evolving changes in the lending policies, procedures and regulations
• Take part in professional development and training to improve knowledge and skill-set
• Work as a team with other departments like underwriting and closing, to make sure the loan process is smooth
• Conduct quality control checks to spot and address anomalies or errors
• Help with the handing of loan packages to investors or secondary market players for loan sale or securitization
• Keep confidentiality and make sure sensitive borrowers’ information are securely handled
• Deliver excellent customer service to borrowers and external parties that are part of the loan process
• Diagnose and fix issues or anomalies that come up during the loan process
• Be an active member of team meetings and contribute to discussions on process upgrade and best practices
• Take part in work improvement initiatives, so as to upgrade work processes and efficiency
• Act in the role of subject matter experts that offer guidance to new hires and junior consumer loan processors
• Perform other duties as deem fit by managers and supervisors.

Consumer Loan Processor Job Description foe Resume

If you have worked before as a consumer loan processor or are currently working in that role and are making a new resume or CV, then you can apply the above sample consumer loan processor job description in making the Professional Experience section of your resume.

You can highlight the duties and responsibilities you have performed or are presently carrying out as a consumer loan processor in your resume’s Professional Experience by utilizing the ones provided in the above job description example.

This will show that you have been successful working as a consumer loan processor, which can greatly enhance your chances of being selected for the new position that you are seeking, especially if it requires someone with some consumer loan processor experience.

Consumer Loan Processor Requirements: Skills, Knowledge, and Abilities for Career Success

A successful consumer loan processor has the following skills, knowledge and abilities, which most employers/recruiters typically look for:

• Exceptional communication skills in both verbal and written format
• Keen attention to details and error-free result in document review and data entry
• Competency in working with computer applications, like Microsoft Office suite and loan origination software
• Can multitask and prioritize tasks well
• Excellent aptitude, analytical, and problem solving skills
• Deep familiarity with lending policies, procedures and regulations
• Familiar with underwriting standards and credit analysis principles
• Effective working in a team and independently
• Solid time management and organizational skills
• Good people skills and have a customer service orientation
• Can keep sensitive details confidential and handle securely.

Loan Processor Employment

The number of loan processors currently in employment in the United States is 221,160 according to Zippia. 

Women make up the larger number of loan processors with 175,617 employments while men 45,563 employments.

According to the U.S. Bureau of Labor Statistics, industries with the largest number of loan officers (another name for loan processors) in employment in the U.S. in 2023 included Credit Intermediation and Related Activities, and Nondepository Credit Intermediation with 167,130 and 97,560 employments respectively.

Loan Processor Salary

Also, according to the BLS 2023 salary report for loan officers, the average annual salary for the occupation was $ 84,490.

The highest salary paying States to loan officers for 2023 included:

• District of Columbia, $181,550
• New York, $120,100
• Massachusetts, $110,060
• New Hampshire$ 99,420
• Vermont $ 97,300.

 Industries that paid the highest salaries over the period included: automobile dealers, $126,100 and other motor vehicle dealers, $115,580.

Conclusion

This comprehensive article has covered the consumer loan processor job description, emphasizing their main duties, responsibilities and requirements to succeed in this position.

A good understanding of this role and the nature of the job will help a candidate seeking to pursue this career to prepare adequately.

Employers too can use this guide to create an accurate job description for the position and hire qualified applicants right away.

In summary, this post serves as a detailed resource for anyone pursuing a career as a consumer loan processor or employers seeking to craft an accurate job description to hire for the role.