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How To Become Loan Processor

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What Does A Mortgage Loan Processor Do

How to Become a Loan Processor – 3 Steps

The main benefit of a loan processor is that they help streamline the process of applying for a home loan. The steps can be quite complex, but the loan processor helps you find the right loan for your budget and needs.Here are some of the core tasks a mortgage processor performs:

  • They collect your financial documents. Collecting and ensuring that financial documents are in order is the most important duty a loan processor has. This step includes confirming that the correct documents are present and contain the accurate information needed for the underwriter. They compile documentation that includes tax returns, W-2s, salary income, proof of insurance, bank statements and evidence of assets and debts.
  • They analyze your credit report. Loan processors order and examine your credit report by looking for any inaccuracies, late payments and collections. From there, they collect letters of explanation from you for further understanding. Having a good credit score increases your likelihood of getting approved for a home loan. The loan processor looks to see how youve handled paying past bills to confirm youll be able to pay off future mortgage payments.
  • They track your deadlines. Your processor keeps track of certain deadlines of your mortgage application timeline to ensure you close on your house on time and avoid any unnecessary fees. The timeline includes finding a home and making an offer, the home appraisal and completing the mortgage underwriting and final loan.

Purple Certification Is First

The Certified Purple Processor, or CPP, is the first level of certification available. To become a CPP, the processor has to complete six hours of training in basic loan processing and six hours of training in advanced loan processing. He must pass a criminal background check and agree to behave according to a code of conduct and ethical standards set by NAMP. He also has to pass with a score of 85 percent or higher on the CPP exam. At the time of publication, the fee for this certification is $550, which includes the processor’s five-year membership to NAMP.

Start The Process Of Becoming A Loan Processor Today

If you know that being a loan processor sounds right for you, Stacey Sandlin would love to help. Staceys educational courses such as Loan Process 101 will set you up for success in your field. If you have any questions on how to become a loan processor, reach out to Stacey today and she will make sure you have all the info you need to make an informed decision on whats next

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Loan Processor Vs Loan Officer

A mortgage loan officer and a mortgage processor are often confused for the same position. However, its important to understand that they hold separate responsibilities in the loan application process. A mortgage loan officer is a licensed mortgage expert who helps navigate the borrower through the loan application process.

The loan officer will recommend the type of mortgage loan program that fits the borrowers financial needs. Once the borrower decides on the loan terms, type and size, the information goes to the mortgage processor, who then files the paperwork.

Basically, a mortgage processor acts as the go-between between the loan officer and the underwriter.

These three key positions work together when pushing a mortgage loan request through, each with a unique set of responsibilities.

Become A Certified Loan Processor

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Related

One of the many people you might encounter when trying to make your dream of home ownership a reality is a loan processor. A loan processor collects personal and financial information to present to an underwriter, who determines whether or not a mortgage gets funded. It is possible to get employment as a loan processor without being certified, however, becoming a certified loan processor can increase future job opportunities. In 2021, Payscale indicated that the median hourly mortgage loan processor salary was $18.20, per hour.

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Best States For A Mortgage Loan Processor

Some places are better than others when it comes to starting a career as a mortgage loan processor. The best states for people in this position are Massachusetts, California, New York, and Maryland. Mortgage loan processors make the most in Massachusetts with an average salary of $58,533. Whereas in California and New York, they would average $57,205 and $57,177, respectively. While mortgage loan processors would only make an average of $56,652 in Maryland, you would still make more there than in the rest of the country. We determined these as the best states based on job availability and pay. By finding the median salary, cost of living, and using the Bureau of Labor Statistics’ Location Quotient, we narrowed down our list of states to these four.

1. Rhode Island

$50,446

2. Michigan

$49,699

3. Delaware

$49,748

Move On To Master Certification

The Certified Master Loan Processor, or CMLP, is the next level of certification available. To achieve this certification, the processor has to complete 24 hours of training, including six hours of training each in four topics: Basic loan processing advanced loan processing underwriting essentials and processing federal housing administration and veteran’s affairs loans. Like the CPP certification, the processor has to pass a criminal background check and agree to behave according to NAMP’s ethical guidelines. He also has to get a passing grade of 85 percent or higher on the CMLP exam. At time of publication, the fee for this certification is $1,495, including the five-year NAMP membership.

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How To Become A Loan Processor With Our Loan Processor Training Courses

What Is A Loan Processor? What Does A Loan Processor Do?

  • Organizing the loan application’s documentation and makes sure it is in order
  • Reviewing the loan package as given by the lender for completeness and accuracy
  • Verifying the borrower’s credit history in terms of debts and payments
  • Checking appraisal and property issues requiring further justifications
  • Determining if the application and ensuring requirements and paperwork comply with the lender’s standards
  • Contacting the borrower if information is missing or if additional information or documentation is required

How To Become A Remote Loan Processor

Loan Processor Salary – Job Without College Degree

The primary qualifications for becoming a remote loan processor are one year of experience in customer service or loan administration and familiarity with loan regulations. These can vary based on the types of loans with which you work, which is one of the reasons that remote loan processors often specialize in specific types of loans. Previous experience is precious in this industry, so you should look for entry-level positions that deal with loans. Fulfilling the responsibilities and duties of a remote loan processor requires communication skills, attention to detail, and the ability to follow internal regulations for processing loan applications.

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How To Become A Loan Processor

The key to becoming a loan processor is developing a skill set that is diversified and works well in the financial industry. Gaining as much experience as possible through on-the-job training sessions and online financial courses will set you up to be more of an appealing hire. Lets review the steps you should take to become a loan processor:

Step 1:Earn a high school diploma. This is usually a minimum educational requirement at many loan companies.

Step 2:Earn a higher-level degree. Its highly recommended to graduate with at least an associate degree in a related subject, like finance, banking or business. This allows you to have the basic concepts of financial management and banking practices down.

Step 3: Receive your mortgage license. Youll need to take the NMLS Mortgage Education pre-training and pass the Mortgage License National Test to receive your mortgage license. This process will depend on the state that you reside in.

Step 4: Obtain employment. A loan processor works at places like credit unions, mortgage lenders and banks. From there, youll want to receive on-the-job training. Its recommended to obtain computer software, communication and information processing skills.

Step 5:Work your way up. The longer you stay in the field, the easier it will be to advance in financial positions.

The salaries listed below do not represent salary estimates from Rocket Mortgage® and were pulled from the Bureau of Labor Statistics for educational purposes only.

Job Description For Mortgage Loan Processor I

Mortgage Loan Processor I performs administrative tasks for mortgage loan processing. Collects and prepares necessary information such as loan applications, credit documents, and appraisals to process and complete mortgage loan files. Being a Mortgage Loan Processor I verifies all documentation for accuracy and completeness. Tracks and monitors due dates. Additionally, Mortgage Loan Processor I ensures all documents are prepared and finalized in compliance with regulatory policies and procedures. Inputs and maintains all required transaction and processing records according to procedures. Responds to inquiries. Prepares required regulatory reporting. Requires a high school diploma or equivalent. Typically reports to a supervisor. The Mortgage Loan Processor I works under the close direction of senior personnel in the functional area. Possesses a moderate understanding of general aspects of the job. May require 0-1 year of general work experience. View full job description

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What You Need For Apply For A Mortgage Loan Originator License

Before submitting an application for a MLO license, you must complete 20 hours of NMLS approved pre-license education courses, which must include 3 hours of Massachusetts content.

You must also achieve a passing score the National Test with Uniform State Content

To confirm your test results have been posted and indicate a passing result you may visit the View Testing Information Quick Guide.

If you already have a record in NMLS, applying for a Massachusetts MLO license will involve filing an individual NMLS record with Massachusetts. If you were once licensed or registered as an individual in another state participating in NMLS you already have a record in NMLS. Submit the form through NMLS and mail any supporting required documents to the Division of Banks .

If you do not currently have a record in the NMLS, getting started is easy. The NMLS website will walk you through all the steps.

Mortgage Processor Defined Plus How To Become One

how to become a loan processor

A mortgage processor, or loan processor, is responsible for assembling, administering and processing your loan application paperwork before it gets approved by the loan underwriter. They play a key role in getting your mortgage loan request to the final close.

Home buying statistics show that about 26% of home buyers cite paying down debt as the largest struggle when it comes to affording their first home. If youre currently planning on buying a home or youre in the process of doing so, its important to know what the responsibilities of a mortgage processor are and what they will provide during these crucial steps.

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Do I Need Good Credit To Get Licensed As A Mortgage Loan Officer

Getting licensed does require training, meeting specific prerequisites, and adhering to specific rules. Because qualifications can vary, sometimes people rule themselves out of an opportunity based on requirements they think are in place that arent. While there are national licensing requirements, as well as state requirements, in place for mortgage loan officers, there are no requirements for a minimum credit score to become licensed.

A poor credit score or other concerns dont have to define your career future. If youre worried about how your past credit issues may alter your ability to get licensed, give your states licensing team a call. Typically, its not the instance itself, but rather, if that instance became a pattern that will have an impact on consumers.

If all of this sounds exciting to you, youre probably ready to pursue a career as a mortgage loan officer!

Our team at BeAMortgageBroker.com is here to help you every step of the way.

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The Responsibilities Involved In A Mortgage Loan Processor Job Can Include:

· Interviewing loan applicants. A mortgage loan processor might interview loan applicants to learn about their employment, financial history, debts, salary, assets, expenses, etc.

· Explaining loan types and terms. With the information described above, the mortgage loan processor can help explain different loan types and terms to the borrower, helping them to find and choose the right loan type for them and their situation.

· Verifying data. Part of the job is verifying the data given to the mortgage loan processor by the borrower, including employment history, collateral asset values, and financial statements.

· Approving or rejecting loans. A mortgage loan processor may be responsible for approving or rejecting loans based on the data given to them and the verification of that data.

· Closing the loan process. Closing the process might include things like setting interest rates on the loan and discussing repayment terms. Youll also be responsible for answering any questions the borrower might have.

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What Does A Remote Loan Processor Do

As a remote loan processor, your job is to work from home in a virtual office to review an application and other documents from a client. In this role, you may help decide whether to finance their loan, create a report, or talk with the client to get verification of specific pieces of information. Most remote loan processors specialize in specific areas, such as mortgages or retail lending. Aside from reviewing documents for completion, you also look for signs of fraud and help to safeguard lending institutions. Most remote loan processing takes place in a time-sensitive environment with often 24 hours or less for processing paperwork, so the ability to consistently multitask and prioritize your work is essential to success in this field.

What Does A Loan Processor Do

What is a Loan Processor and What Do They Do?

A loan processor reviews loan applications before sending them to the underwriter for approval. As a loan processor, your responsibilities and duties include organizing required documents and verifying the accuracy and completeness of the loan application. You work as the intermediary between the loan officer and the underwriter, so you will not usually have direct contact with the customer. A good loan processor has excellent data and organizational skills, which are needed to succeed in this career.

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Complete Your Florida Pre

Before you can get your Florida mortgage license, you need to take required pre-license courses. These help you learn mortgage laws and procedures. Each state has different mortgage education requirements for doing business. If you work for a non-bank institution , you must get licensed in each state that you want to do business in. The SAFE Act requires that you take 20 hours of pre-license education at a minimum. Some states have additional mortgage licensing requirements. Visit the NMLS website for a complete list of state requirements.

Florida Education Requirements:

Become A Mortgage Loan Processor

  • You will be able to understand how mortgage processing works
  • You will be able to start working as a mortgage loan processor
  • You will be able to prepare and submit a loan package to underwriting for approval
  • You will learn how to review specific documents including a 1003 and disclosures
  • You will learn how to become a contract processor as well as a salaried processor
  • You will understand how to prepare a loan package for auditing
  • You will be able to complete compliance checks and know exactly what needs to be in each file
  • You will learn how to view and make changes on Calyx Point
  • You will learn how to submit a loan on a lenders website

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What Does A Loan Officer Do

A loan officerâs general tasks and responsibilities include evaluating, authorizing, and recommending loan applications of potential borrowers. Loan officers can work in financial institutions such as banks, credit unions, or mortgage companies.

Specific tasks might include:

  • Receiving and assessing loan applications

  • Assessing borrowersâ creditworthiness by analyzing their financial history

  • Consulting and educating borrowers on loan terms

  • Answering borrowersâ questions and providing customer service

How Long Does It Take To Become A Mortgage Loan Officer

How To Become A Mortgage Loan Processor

The time it takes to become a loan officer depends on what kind of schedule works best for you and how quickly you can work through the licensing requirements. Typically, it takes 45 days to complete the necessary requirements to become a licensed mortgage loan officer. However, since each state has unique requirements, this may vary and be contingent on your ability to pass required examinations and background checks.

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Become An Ambassador Loan Processor

The Certified Ambassador Loan Processor, or CALP, is the highest level of certification available. The processor has to complete 42 hours of training. The training includes all of the courses required to obtain the CMLP certification, plus six hours of training in the FHA’s special rehab program, six hours of training in analysis of tax returns, and six hours in mortgage fraud awareness and prevention. The processor has to pass a criminal background check and agree to behave according to NAMP’s ethical guidelines. He also has to pass the CALP with a grade of 85 percent or higher. At the time of publication, the fee is $2,350, including the five-year NAMP membership.

References

Mortgage Loan Processor Job Description Sample

With this Mortgage Loan Processor job description sample, you can get a good idea of what employers are looking for when hiring for this position. Remember, every employer is different and each will have unique qualifications when they hire for a Mortgage Loan Processor role.

Job Summary

We are seeking a Mortgage Loan Processor to help walk our customers through the mortgage process. In this role, you will work with both the lender and the borrower to make the process go as smoothly as possible. You will help all parties gather the necessary paperwork, review it for compliance issues, and submit it on their behalf. Our ideal applicant has a bachelor’s degree in a financial field, a mortgage loan originator license, and experience working with FHA and VA loans.

Duties and Responsibilities

  • Help the applicant choose a mortgage option
  • Review their information and documents
  • Submit a loan application to the underwriting department
  • Ensure all information meets banking regulations

Requirements and Qualifications

  • Bachelor’s degree in a financial or business field
  • Proficiency with office software like Microsoft Outlook
  • Strong communication, critical thinking, and organizational skills

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