What Do Loan Processors Do?

September 2, 2009 6 Comments »


I’ve covered the mortgage underwriter’s role, so let’s take a look at what “loan processors” do.

Once a loan is originated by the mortgage broker or loan officer, the corresponding paperwork is sent along to a loan processor.

The loan processor is responsible for prepping and organizing the file and getting it over to the bank or mortgage lender for approval.

Processors don’t just grab the loan file and submit it; they double-check everything like debt-to-income ratios and employment information to ensure the file will actually be approved.

For this reason, they play a critical role in the loan approval process, as mistakes made by the loan originator could be caught and corrected before the file lands in the unforgiving hands of an underwriter.

Assuming the loan is approved, the processor will receive a list of prior-to-document conditions (PTDs) that must be met before loan documents are released by the bank.

It is the processor’s job to work with the loan originator, title and escrow companies, and various others to get all the necessary paperwork to fulfill those conditions; and things can get very complicated.

If the loan is originated via the wholesale channel (mortgage broker), there are essentially two loan processors working together on the file.

One who works on behalf of the mortgage broker and one that works at the bank, typically referred to as an Account Manager (AM).

The loan processor who works with the broker will essentially send conditions to the AM that works at the bank so they can be signed off.

If the loan is originated via the retail channel, the AM will work with the loan officer at the bank to get the conditions cleared.

Loan processors may also act as liaisons between the broker/loan officer and the underwriter.

In a nutshell, the loan originator hustles to bring in new borrowers and the loan processor hustles to get the loans funded, while both may irritate the underwriter in the process. : )

(photo: kozumel)


  1. TU May 9, 2015 at 9:33 pm -

    As someone who is versed in the industry. Would you be able to recommend a class/training method for someone who is looking to get into mortgage underwriting? thanks in advance.

  2. Colin Robertson May 11, 2015 at 10:01 am -


    Typically whatever company hires you will have you go through a training course over the course of a few weeks. However, the best way to learn quickly is when you are truly hands-on. Generally you work under a more seasoned individual first, assisting them while learning about the processes involved.

  3. lydia hong July 27, 2015 at 3:38 pm -

    I just passed the test. Now, should I apply for Loan Officer or Processor. Which one is of “new comer”? And how do you get paid commission as realtor? Please help.

  4. Colin Robertson July 28, 2015 at 8:57 am -


    A loan processor deals with lots of paperwork and basically assists the loan officer in closing the loan. Conversely, both loan officer and real estate agent jobs are sales job that require selling and finding clients. So it depends where you personality puts you. Real estate agents get a portion of the sales price, say 3%, but have to give some of it their listing brokerage. LOs also get paid commission for closing loans and processors may get an hourly and also bonuses for closings lots of loans each month.

  5. Liz September 3, 2015 at 8:31 am -

    Found a job posting for “Mortgage Loan Processor Trainee” and mentions no real estate experience needed. They only really require you have a high school diploma. Is this position really something one can pick up without any mortgage/real estate experience?

  6. Colin Robertson September 3, 2015 at 9:03 am -


    You can learn pretty quick on the job, like most jobs. You’d probably shadow someone experienced and help them out with basics (doing as they say, getting them X paperwork, etc.) and learn along the way.

Leave A Response