Loan Processor Classes

2008-12-01 13:14:33

( Financial )



The Responsibilities of Loan Processors

The current financial crisis was primarily due to poor debt servicing performance of existing loan clients, as well as poor account management by lending institutions. Instead of concentrating only on borrowers with good credit standing, some lenders have chosen to take risks with subprime borrowers, and then sustained huge losses from foreclosures due to bad loans.

As a result of the subprime loan crisis, many banks have reverted to stricter credit policies which entails more careful review of applications prior to their approval. Some institutions give in-house mortgage processor training courses while others let their staff attend these loan processor classes outside of the company. Or if you wish to pursue a career in loan processing, you can take the course at your own expense.

Scope of Loan Processor Classes

The main goal of loan processor classes is to enable the attendee to understand the mechanisms of different types of loans, and to provide him with the necessary tools to evaluate a loan application properly with respect to the prospective borrower's credit worthiness. He will also be acquainted with various legal and financial requirements of loans, specifically government and state regulations concerning mortgages and foreclosures.

Another important learning area in loan processor classes is the skill of matching the right loan package to the right type of borrower. You will get familiarized with the calculation of loan terms, especially periodic interest and principal. You will also learn how to use the information in a credit report to predict future debt servicing performance of the borrower.

Part of your mortgage processor training is on how to handle an adverse credit situation, where a loan account has turned sour. You will get acquainted on how to detect potential problems, as well as how to deal with problematic loan accounts.

Signing Up for Loan Processor Classes

Various institutes offer the loan processor classes. Most are six months or less and cost under a hundred dollars. Certificate courses cost slightly higher than non-certificate ones.

For more convenience, you can take an online version of the course right in the comfort of your own home and at your own pace.


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