Loan processors do a lot more than just take loan applications for banks. Loan processors work in many segments of the economy including federal, state and local governments, foundations and trusts, colleges and universities and non-profit organizations. The scope of a loan processor’s job has expanded over time to include responsibilities far beyond those of a simple application-taker. Loan processors work in tandem with the underwriters who make lending decisions to be sure the applications and supporting documents are verified and complete.
The loan processor is typically the first person in a chain of dependencies related to a customer and to that customer’s loan. While the initial link in the chain is the application, there can be any number of secondary links needed to complete the transaction. Lenders want to know that an applicant is credit-worthy and has the resources to repay the loan. The loan processor begins the process of verifying the applicant’s financial status and credit-worthiness by collecting all necessary information and documents from or on behalf of the applicant, including (but not limited to):
– Loan application
– Credit report
– Title commitment (for a mortgage loan)
– Survey (mortgage)
– Appraisal (mortgagee or other high-value purchase)
– Tax returns
– Pay stubs
– W-2s or 1099s
– Bank statements
– Statements from 401k accounts or other investments
The loan processor acts as a middleman between the applicant and the underwriters who make the lending decision. He or she oversees the process from application to disbursement to assure that the transaction is completely smoothly and in a timely manner.
In New York State, loan processor salaries range from $28,900 to $36,700 with $32,200 being the median. In the U.S., the average salary for a mortgage loan processor is $32,200, so the salaries in New York State are competitive.
The cost of living in New York State, however, is extremely variable and is highly dependent on where in the state you live. Here are a few cost of living examples, based on a salary of $50,000:
New York City 36.4% more expensive than the U.S. average
Buffalo 22.4% cheaper
Syracuse 20.6% cheaper
Albany 36.4 % more expensive
The state also has hefty income taxes and state and local sales taxes. The personal income tax rate ranges from 4% to 7.7%. New York State residents pay the highest combined state and local taxes in the U.S. In addition, there is sales tax that is charged by the county in which you live, so for the above cities the rates would be:
New York City 8.38%
Syracuse 8.00 %
If you’re seeking a job as a loan processor in New York State, you’d be well advised to locate away from the New York City or Albany area. And if you’re considering the Buffalo or Syracuse area, be sure to thoroughly investigate costs such as housing, food and utilities in those regions.