Loan Processor Salary
The average Loan Processor in the United States earns approximately $15.48 per hour. With some bonuses approaching $12K and certain profit sharing proceeds approaching $10K, overall incomes of Loan Processors spread between $26K and $53K depending on individual performance. Location is the main element affecting pay for this group — career duration and the specific company are driving factors as well. Among survey respondents, women are more common than men; 85 percent of Loan Processors are female. Although a fair number have medical coverage and more than half have dental coverage, approximately one-fifth claim no health benefits at all. Most Loan Processors report high levels of job satisfaction. Figures cited in this summary are based on replies to PayScale's salary questionnaire.
Job Description for Loan Processor
A loan processor is responsible for managing the administrative tasks associated with loans or mortgages. These tasks include data entry, loan application verification, background and credit checks, communicating with applicants, and preparing loan applications for submission to underwriters. Loan processors ensure that all required documentation and signatures are in place prior to submitting the loan for approval. Mortgage loan processors also must be able to deal with real estate and escrow agents, buyers, homebuilders, and all others who are involved with the home-buying process. In this way, mortgage loan processing can be more complicated; however, most loan processors work in the mortgage or automobile loan industry.Read More...
Loan processors work closely with mortgage loan supervisors, appraisers, underwriters, and others involved in the loan process. Therefore, they must be prepared to communicate effectively with a variety of people. Also, loan processors should be prepared to explain any necessary requirements to the client and must be able to answer questions clearly. In addition to this, loan processors should be well-organized and able to juggle multiple cases at once.
Loan processors work indoors and the majority of the work is clerical. They work traditional business hours and rarely work weekends or overtime. They may occasionally be asked to work later, but this is rare and usually toward the end of the month, when people are close to closing on a house. Loan processors are normally required to have at least a high-school diploma, if not a bachelor’s degree in business, accounting, or another relevant area. Many companies accept two or more years of experience in loan processing in place of a degree. They must also be computer proficient and have a comprehensive understanding of the specific national and state regulations regarding loan requirements and documentation.
Loan Processor Tasks
- Complete and maintain all paperwork for ongoing and new loans, including loan disclosures.
- Submit completed loans to underwriting, and ensure all items are obtained.
- Order title and escrow, review them and process loan conditions.
- Work with clients and loan originator to obtain necessary information, process it and finalize loan documents.
Common Career Paths for Loan Processor
At the upper end, Loan Processors who move into a Mortgage Processing Manager role can end up with a hefty increase in pay. The average income for Mortgage Processing Managers is a much higher $56K per year. Loan Processors most often move into positions as Loan Officers or Senior Mortgage Loan Processors; those groups report median salaries that are $5K higher and $8K higher, respectively.
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Popular Employer Salaries for Loan Processor
Dominating the field, Wells Fargo Home Mortgage, Wells Fargo & Co., Wells Fargo Bank, Academy Mortgage, and J.P. Morgan Chase & Co. (JPMCC) are top firms with a reputation for hiring a great number of Loan Processors. Heading up the field in terms of compensation, J.P. Morgan Chase & Co. (JPMCC) offers the most; Loan Processors earn $44K on average there.
Popular Skills for Loan Processor
Loan Processors generally report applying a varied skill set to their work. Most notably, skills in Mortgage Loans, Loan Underwriting, Loan Processing, and Loan Documents are correlated to pay that is above average. At the other end of the pay range are skills like Data Entry, Consumer Loans, and Commercial Loans. Those educated in Loan Documents tend to be well versed in Customer Service and Mortgage Loans.
Pay by Experience Level for Loan Processor
Median of all compensation (including tips, bonus, and overtime) by years of experience.
More years of relevant experience do not necessarily translate to higher paychecks. The average beginner in this position makes around $33K, but folks who have been around for five to 10 years see a markedly higher median salary of $39K. On average, Loan Processors make $42K following one to two decades on the job. After two decades in the workforce, the average Loan Processor generally earns more than ever; median pay for this group is estimated at $47K.
Pay Difference by Location
For those looking to make money, Loan Processors in Los Angeles enjoy an exceptional pay rate, 37 percent above the national average. Loan Processors will also find cushy salaries in San Diego (+34 percent), Chicago (+29 percent), Seattle (+25 percent), and Sacramento (+23 percent). San Antonio ranks last in the field for pay, reporting salaries 16 percent below the national average. Below-median salaries also turn up in Austin and St. Louis (13 percent lower and 12 percent lower, respectively).
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