What Does a Mortgage Loan Processor Do?
A mortgage loan processor prepares and organizes loan applications for underwriting by collecting and verifying essential documentation. They gather financial records, such as pay stubs, bank statements, and credit reports, ensuring all data meets lender and regulatory standards. By reviewing files for completeness, they facilitate a smooth transition to the underwriting stage.
Mortgage loan processors also communicate with borrowers, loan officers, and third parties to resolve discrepancies or obtain missing information. They input data into processing systems, track application progress, and ensure compliance with federal guidelines, such as those from HUD or FHA. The role requires meticulous organization, regulatory awareness, and precision, typically performed in banks, mortgage companies, or credit unions, where efficient loan handling is vital.
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National Average Salary
Mortgage loan processor salaries vary by experience, industry, organization size, and geography. Click below to explore salaries by local market.
The average national salary for a Mortgage Loan Processor is:
$52,553
Mortgage Loan Processor Job Requirements
Mortgage loan processors must excel in organization, regulatory compliance, and communication to prepare loan files accurately. Below are common requirements covering experience, technical skills, interpersonal abilities, and educational qualifications.
Experience
- 1–3 years of experience in mortgage processing or financial services.
- Familiarity with conventional, FHA, VA, or USDA loan applications.
- Prior work in banking, lending, or mortgage firms preferred.
- Experience coordinating with underwriters and loan officers.
Hard skills
- Proficiency in loan origination software (e.g., Encompass, Calyx).
- Knowledge of mortgage lending regulations (e.g., TILA, RESPA).
- Ability to verify financial documents and credit reports.
- Strong data entry and file management skills.
Soft skills
- Attention to detail for error-free documentation.
- Effective communication for interacting with borrowers and staff.
- Time management to meet processing deadlines.
- Problem-solving to address application inconsistencies.
Education and certifications
- High school diploma required; associate’s or bachelor’s degree in finance or business preferred.
- Mortgage Loan Originator (MLO) license, if applicable by state.
- NAMP Certified Mortgage Processor (CMP) credential is advantageous.
- Training in FHA or VA loan processing is a plus.
Mortgage Loan Processor Job Descriptions
It’s important to include the right content in your job description when hiring a mortgage loan processor. The following examples can serve as templates for attracting the best available talent for your team.
Example 1
The primary purpose of this role is to provide detailed guidance and advice in order to fulfill all loan qualification requirements in a compliant manner. You need to be able to provide exceptional member service through ongoing communication to members and business partners. You will be responsible for evaluating and validating all information provided to you by the client on the residential loan application and communicating to members any additional requirements. If you’re extremely organized and dedicated to helping others.
Typical duties and responsibilities
- Guides the borrower through the buying process
- Administer loan applications
- Assemble loan documents
- Review all loans and registrations for completeness and accuracy
- Provide and collect financial documents for underwriters
- Act as clients’ main point of contact throughout the entire mortgage process
- Determine the initial potential for qualification by evaluating credit history, income levels, and assets
- Meet the deadlines required for loan application
- Correct any errors in applications
- Check clients checking and savings accounts, monthly bills, and debts i.e. student loans and car loans
Education and experience
- High school diploma or equivalent
- Associates degree in finance, banking, or business
- Completion of the National Mortgage Licensing Program (NMLS)
- 1 year or more of experience
Required skills and qualifications
- Basic knowledge of underwriting terminology
- Meticulous attention to detail and accuracy
- Experience working on loan origination/processing software, like Point, ProDeal, Encompass
- Strong analytical and time management skills
- Ability to accurately and efficiently process and record a large volume of data
Preferred qualifications
- FHA Direct Endorsement preferred
- Bachelor’s degree in finance, banking, or business
- Bilingual
Example 2
This candidate will be responsible for the entire end-to-end mortgage loan process. They will gather and process all loan documentation and ensure compliance with policy, regulatory, and loan terms.
Responsibilities
- Review each loan file to verify that documents are present, accurate, and complete before underwriting
- Manage loan process through mortgage software system
- Ensure that loan rules, obligations, and deadlines are met
- Audit and prepare quality files that meet closing objectives
- Obtain mortgage loan documentation for clients
Qualifications
- Bachelor’s degree or equivalent
- Previous experience with mortgage loan processing preferred
- Knowledge of FHA, VA, Conventional, and USDA loans
Example 3
Job summary
Responsible for routing mortgage loan files through internal processing systems and obtain information needed to assist in completing a file for approval and closing; Complies with all regulations which apply within the scope of the position, including Bank Secrecy Act.
Responsibilities
- Communicate with borrowers, underwriters, and loan officers to assemble file for underwriting
- Ensure that all of the documentation necessary to obtain loan approval has been received, reviewed, and updated
- Review all files for completeness and accuracy prior to loan submission
- Review items needed on conditional approval
- Obtain and verify all underwriting and funding conditions
- Submit loan for final approval to underwriting
- Maintain a pipeline of loans and is responsible for the timely and compliant flow of loans until closing
- Perform other duties as assigned
Qualifications
- Education: High school diploma or equivalent; AA degree preferred
- Experience: Minimum 2 years of current mortgage loan processing experience
- Skills/Abilities: Computer literate; effective verbal and written communication skills; excellent time management and organizational skills; knowledge of FNMA, FHLMC, VA, and FHA guidelines; bilingual (English/Mandarin) preferred
Example 4
Prepares and processes mortgage loan records, files, and correspondence from application through approval. Assures compliance with bank, regulatory and investor guidelines and customer service standards. Communicates with customers, internal staff, brokers, counsel, title companies, etc. to respond to inquiries, resolve problems, and obtain all necessary documentation required for the file.
Basic qualifications
- High school diploma or equivalent
- Minimum one year of related experience
Preferred skills/experience
- Ability to manage multiple tasks/projects and deadlines simultaneously
- Ability to identify and resolve/escalate problems with guidance
- Effective verbal and written communication skills