Loan Coordinator vs. Loan Processor: What Are the Differences?
Learn about the two careers and review some of the similarities and differences between them.
A loan coordinator and loan processor are both responsible for handling loan applications and ensuring that the loan process runs smoothly. However, there are some key differences between the two positions. In this article, we compare and contrast the job duties, education requirements and salary expectations for loan coordinators and loan processors. We also provide an overview of the loan process and tips for those interested in pursuing a career in loan processing.
What is a Loan Coordinator?
A Loan Coordinator is responsible for working with loan applicants to collect and review the necessary documentation to process the loan. They work with loan officers and underwriters to ensure that all required information is collected and that the loan meets all guidelines. Loan Coordinators typically work in banks, credit unions or other financial institutions. They may also work for mortgage companies, real estate firms or other businesses that offer loans to customers. Loan Coordinators typically have a background in customer service and experience working with financial documents.
What is a Loan Processor?
Loan processors are responsible for collecting and verifying the documentation needed to approve a loan application. This can include employment history, tax returns, bank statements and pay stubs. They forward this documentation to the underwriter who will determine if the loan should be approved. Loan processors also communicate with the borrower and the loan officer to keep them updated on the status of their loan. They may also be responsible for ordering appraisals and title reports. Loan processors typically work in banks, credit unions or mortgage companies.
Loan Coordinator vs. Loan Processor
Here are the main differences between a loan coordinator and a loan processor.
Job Duties
One of the biggest differences between loan coordinators and processors is the type of duties they perform. Loan coordinators typically have more managerial responsibilities, while processors have more clerical and technical responsibilities. This is because a processor often works at a lower level in the lending process than a coordinator does.
A coordinator may be responsible for assigning tasks like generating preapproval letters or researching applicants to the processors on their team. Coordinators also help ensure that each borrower’s file passes through each stage of the lending process successfully. A processor may be responsible for performing specific tasks for individual borrowers, such as verifying documents or calling applicants.
Job Requirements
Loan coordinators and loan processors typically need at least a high school diploma or equivalent to enter the field. However, many employers prefer candidates who have some postsecondary education, such as a certificate or associate degree in business administration, accounting or a related field. Additionally, loan coordinators and loan processors might benefit from pursuing professional certification through organizations like the Mortgage Bankers Association (MBA) or the National Association of Mortgage Processors (NAMP). These certifications can demonstrate that professionals have the skills and knowledge necessary to excel in their roles.
Work Environment
Loan coordinators and loan processors work in different environments. Loan coordinators typically work for banks, credit unions or other financial institutions that offer loans to customers. They may also work for mortgage companies or real estate agencies. Loan coordinators usually work in an office environment with a team of professionals who help them process applications.
Loan processors often work for the same types of organizations as loan coordinators but are more likely to work in a call center environment where they can assist borrowers by phone. Loan processors may also work for private lenders such as payday lenders.
Skills
Both loan coordinators and loan processors need to have excellent customer service skills as they will be working with people throughout the loan process. They also both need to be highly organized and detail-oriented in order to keep track of all the paperwork and deadlines associated with a loan.
Loan coordinators typically need to have good interpersonal skills as they may be responsible for communicating with multiple parties involved in a loan, such as the borrower, lender and real estate agent. They also need to be able to handle difficult situations and customers. Loan processors usually do not interact with customers as much as loan coordinators, but they still need to be able to communicate effectively with those they do interact with, such as loan officers and underwriters.
Loan coordinators need to have a good understanding of the loan process and the various documents involved. They also need to be able to answer questions about the loan process and help guide the borrower through it. Loan processors need to have a more in-depth knowledge of the loan process and the specific documentation required for each type of loan. They also are responsible for verifying the accuracy of all the information in the loan application and supporting documentation.
Salary
Loan coordinators and loan processors both work in the financial industry. Loan coordinators earn an average salary of $50,591 per year, while loan processors earn an average salary of $48,841 per year. Both of these salaries may vary depending on the size of the company, the location of the job and the level of experience the employee has.
