Loan Processor vs Loan Officer

 

What is the difference between a loan officer (LO) and loan processor (LP)?  As a contract processor working with hundreds of different loan officers I believe I have become the expert on this subject...

Processors work behind the scenes.  They review the documents provided by the LO and borrowers.  They put together a package to the lender/underwriter for loan approval based on the type of loan the borrower is applying for. Processors will brainstorm with the LO if needed to develop the best plan for the borrowers. Processors should have a strong knowledge of Fannie, Freddie, VA, FHA, and USDA guidelines.  In addition - they should know and/or learn quickly exactly what each investor needs to ensure the loan is approved quickly.  The processor works with all parties (escrow, borrowers, lender, and loan officer) to gather all information/documentation needed to get the loan to closing.  Once the loan is closed/funded - the processor must know compliance requirements to ensure all the documents and information is in the closed file.

Loan officers are the face of the company.  They are the go-getters. They are the sales people.  Without loan officers there would not be a company or a job for processors.  A loan officer meets with propective borrowers and gathers information to see if there is a loan that will fit their needs.  A good LO will know the market, the types of loans available, and is a problem solver. After the LO meets with the borrowers and evaluates their documents and needs and determines there is a prospective loan he will then send the information to the processor.  The processor should be able to take the information and run with it.  It is critical that the LO be detailed and complete the application before transferring the file to the processor.  This will ensure the loan is done without any unnecessary hiccups.

Contract processors are the LO's best friend. We are experts on getting the job done.  One thing that is important to note is that we don't get paid unless the LO does.  We have a vested interest in making sure each loan closes cleanly, quickly and with the best customer service availalbe.