Three Loan Processing Careers within Your Reach
Everyone needs a home, and as families grow and change, so does their need for appropriate housing. Sometimes buying makes more economic sense than renting. However, most people aren’t able to front the cash needed to buy a house or condominium outright, and this makes for plentiful careers in the field of lending. Demand is especially strong during periods of economic expansion, population growth and low-interest rates. The US Bureau of Labor Statistics forecasts job growth for loan officers during the 2018 to 2022 period. Learn more about loan processing training as a door opener to a new opportunity or promotion. The following are three specific career tracks that are within your reach once you have a grasp on the basics:
Originator
Working on the frontline, originators sell lending services and mortgage products to clients. When a referral comes in, they conduct the first interview and help clients to complete new applications. They also prospect new business by building and maintaining relationships with realtors, financial advisors, and past clients.
Licensing is usually a requirement to work as an originator. If not already held, most companies require you to pass the applicable state exam within 30 days of employment. Knowledge of processing procedures and underwriting guidelines are vital. Some are given a base salary; others work on a commission-only basis.
Processor
If you are a strong multi-tasker, enjoy doing investigative research and like working with people, then working as a processor may be right for you. The position entails the securing of documents such as appraisals, flood reports, car titles and income verification forms. Keeping the process moving forward and regularly communicating with the client is key.
Most companies look for knowledge of federal policies and guidelines when hiring. Job descriptions often list mortgage industry knowledge and familiarity with fraud detection tools as requirements. Positions range from entry- to senior level. Loan processing training can give you the skill base that you need to qualify.
Underwriter
When the processor’s tasks are done, the underwriter’s work begins. If the application looks good, they may simply check to ensure that everything is in order and then give approval. Other times, they make judgments to determine if a potential borrower’s financial health truly qualifies them for a mortgage. They often spend time analyzing figures such as the applicant’s debt-to-income ratio and the assessed property value vs. the loan amount. If too much risk is determined, rather than simply deny the loan, an underwriter will usually recommend alternative financing, such as a government-insured mortgage. If a loan defaults, the lender takes a serious financial hit; therefore the underwriter’s role is really to act as a quality check to ensure that if the money is borrowed, it can reasonably be paid back.
The job is more “behind the scenes” than it is client facing. Positions require a thorough understanding of credit review and current regulations. Some start out in a junior role and can move up with additional training and experience.
Whether you already work in the industry or not, banks, credit unions and mortgage companies offer attractive career opportunities to those who have the needed skills. Consider the benefits of loan processing training to stay competitive and increase your earning potential.
