The Essential Ingredients of Hiring a Loan Processor
Loan processors are integral to a loan broking business with the important function of taking the loan applicants through the process of applying for, negotiating with the lender, securing the loan and finally arranging its settlement. They can deal with various products used to purchase anything from land and houses, to business assets and motor vehicles.
There are no required qualifications to be a loan processor though many loan processors have bachelor’s degrees in a business-related area, but this is not an essential requirement.
A loan processor must be able to:
- Deal with people. The role requires that the loan processor interacts with the broker, the borrower and the lender. All of these participants have different motivations for being engaged in the process and, for their own reasons might be feeling quite stressed about what is going on.
- Pay close attention to detail. The documentation required for acquiring a loan, particularly a loan to secure a large asset, is invariably complex. Quite reasonably, lenders need the documentation to be very accurately completed and that various elements have been verified. The loan processor will be responsible for ensuring that everything is completed accurately to get every loan completed.
- Have difficult conversations. Some borrowers may be tempted to create an application that looks more favourable by not supplying all the information they should.
- Work to a tight schedule. While the processes are important, the timing is important too. Acquiring loans is usually running alongside contracts for sale that have strict time limits and failing to meet the deadlines can lead to the client losing the deal and/or their deposit.
- Juggle numerous loans that will all be at different stages from the initial application to settlement.
A good application will draw attention to your:
- Experience as a loan processor
- If you have not worked as a loan processor before, you can focus on work related to the loan processor. This might include a mortgage broker for example who will interact and work closely with a loan processor
- Organisation ability and the skill related to managing multiple loans.
- Attention to detail
- Relationship building skills and an ability to work with various stakeholders
- The software systems that you are familiar with using.
- Success with self-motivation and ability to ensure that tasks are done on time
When you are going through the interview process, it is important that you are prepared to answer questions about:
- Specific operational issues
- How you dealt with situations in the past
- If it is a position that also involves some leadership or management, perhaps with involving a situation with several loan processors, then expect a discussion about:
- Your past experiences in management will arise
- If you haven’t been involved with managing before, then discussion about less formal forms of management, such as when your current manager is on leave, or your approach to conflict management, dealing with people more generally.