Processing a home loan is a complex process requiring a range of skills and expertise. With lenders demanding significantly more documentation and requirements these days, more and more work is needing to go into serviceability and compliance. The average brokerage’s workload has increased.
We’ve noticed that the duties and responsibilities of loan processors are increasing significantly too. There’s now a clear distinction between different ‘types’ of loan processors. Particularly noteworthy is that the Broker Analyst position has become increasingly popular.
If you’re a loan processor yourself:
- Do you know what sort of processor you are?
- Do you know what sort of skills you should have and how you should be remunerated for them?
- Do you know what pathways your career can take, and how you can successfully grow yourself and achieve the type of role you want?
Read on to learn all about the three key types of loan processors we’re seeing in brokerages today.
Loan processors with basic admin skills are vital in any growing brokerage. Typically, these roles drive the loans from submission to settlement, involving data entry and document management. They’ll need to be familiar with customer notes and there’s also an element of customer service and communications throughout the approval process. Loan processors will also perform post-settlement customer service, client maintenance, repricing and more.
Standard loan processors typically have about a year or two of experience up their sleeves at a minimum, and may come from a banking background prior.
Key skills and abilities include data entry, strong attention to detail, verbal and written communication, customer service, time management and general admin.
In terms of remuneration, a standard market rate for a loan processor of this experience level is $65–$70k + Superannuation.
Loan packagers get involved in the loan process a little earlier on than standard processors. They’ll typically be involved in more pre-submission tasks including chasing supporting documents, NCCP documents, signed applications, packaging up a customer’s application and lodging it (or in some cases handing it to a loan processor for lodgement). They’ll take the loan recommendations from the mortgage broker or broker analyst, scrutinise the documents against the lender policy and finalise the loan structure. They’ll then manage lodgement or pass onto a loan processor to do this.
Key skills and abilities include admin, client interaction, high attention to detail for scrutinising documents, time management and high level of organisation. These individuals need to be more proactive than a processor as they have to spot potential issues before they arise.
Loan packagers of this level may have about 2 years of industry experience and will be paid around $70k–$75k.
Broker analysts perform functions closer to what mortgage brokers do. They may be involved at the beginning of client interactions, and support a mortgage broker by helping work out what strategy and types of products clients need. They’ll be heavily involved in calculating serviceability and loan structure (lots of number crunching!), including communicating this with the client. They will also be the policy and product expert, conducting research on the best recommendations for each customer. From there, they may also package and lodge applications, or hand that part of the process over to another packager or processor.
Key skills and abilities for broker analysts include service calculations, numeracy (they have to be very good with numbers), loan strategy, problem solving, research and a deep knowledge of product options. These individuals tend to be strong at the credit analysis, but maybe not as strong on the business development, hence can suit these positions well rather than mortgage broker roles.
Broker analysts may be paid anywhere from $75k–$90k and will typically have 2–4 years and upwards of experience.
How to progress your career or develop in a loan processor role
There are so many directions your career can take if you’re a loan processor. It’s important to know your options, and to be able to talk openly about your career progression opportunities with your employer.
You can perform any type of loan processor role without formal qualifications, however it helps to have a Cert IV in Mortgage Broking – particularly towards the broker analyst end of things. This could also help you step into mortgage broking if that’s a direction you want to go in.
Alternatively, you may be more interested in the business operations and administration side of the business. As a loan processor, you can develop yourself into a valuable asset for the business, even progressing into a Business Manager. This could propel you into a leadership position, overseeing staff and operations to ensure the office runs like a well-oiled machine. Roles like this are remunerated well into the $90k+ range.
Why be a loan processor?
There are lots of great reasons to become a loan processor, at any level.
These can be highly engaging and challenging roles to build your career upon. You can develop your skillset, work your way up into higher level roles, and increase your earning potential if you choose to.
You can also enjoy a loan processor role if you’re seeking stable employment and flexible work hours. There are plenty of part time roles available, which can be useful for parents or people with side businesses.
You can set yourself up as an asset to the business you’re currently at and stay there long-term, or you can work your way up at different companies.
Whatever you choose to do – you’re a valuable and vital part of a business and you should always ensure you’re being appreciated and valued for what you’re worth!
If you need advice about where to take your career in mortgage broking and loan processing, please reach out to our team! We’d love to discuss your options with you and connect you with exciting roles at some of the best brokerages in Australia.