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Loan Processor is a one who helps in a closing of the loan at an exact time. When loan procedure is started by a mortgage broker or loan officer then all the paperwork related to a mortgage is sent to loan processor. They are mainly responsible for preparing and organizing all the documents related to mortgage. The main purpose of a file is to get the approval from lender or mortgagor.

Importance of loan processors:

They are not only involved in the preparation and organizing the file but they are also involved in checking the files for any mistakes. They double check the documents. They check for debt to income ratio and all the employment information available on file. Files are checked to ensure that approval is made on a sound basis. They play a very important role in the approval process of a loan. They detect any mistake made by a mortgage broker in the file. This is very important to ensure that loan is handed to the deserving underwriter. A process cannot be reversed once a loan is handed to the underwriter so it is important to check all the files thoroughly. It is also advisable for loan originators to not to do a large number of mistakes. Before the release of a document by the bank, several conditions must be met. These conditions are called prior to document conditions (PTD). A set of these conditions is received by loan processor before the release of any type of file containing documents about the mortgage. It is the job of loan processor to work with a mortgage broker for doing all the paperwork. His role is very important as in certain cases, things get complicated in no time.

Roles of a loan processor:

A processor is the main person who helps the person in closing the loan transaction. They are not responsible for negotiating the rates and terms of a mortgage loan. Their main role is attached to the work of mortgage broker and maintenance of file. It is not that, the loan originators are more experienced and knowledgeable than loan processors. It is researched that loan processors are more knowledgeable than mortgage broker because they handle a large volume of the transaction on a daily basis. Sometimes, it also happens that two processors are working on a file. A loan processor also sends prior to document conditions to Account Manager of a bank who signs a document. In case of a loan that originates from retailing channel, Account manager works with a loan processor in closing the loan. Another important role explanation is that he acts as a liaison between the underwriter and a mortgage broker.


  • Loan processors may or may not need a license. This is also dependent on the company.
  • Loan processors can also make a commission. This is dependent on pay structure of employers.
  • Processors also make money per loan. This again dependent on the pay of loan processors. When pay is low then they made more per loan.
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