Commercial Loan Processing Jobs
Commercial loan processors get into the nuts and bolts of a loan. While the business or commercial bankers get the ball rolling, it is the commercial loan processors that ensure all of a loan’s ducks are in a row.
All lending institutions are required to follow federal lending laws, which include the completion of certain paperwork and the acquisition of the applicable documentation to support the loan. Commercial loan processors work with the business or commercial banker to make sure that the customer has provided all necessary information and signatures meets the bank’s standards and requirements for the loan. Since business or commercial loans require different information than individual loans, commercial loan processors usually need to know the commercial loan process and requirements. Once the loan package is complete, the commercial loan processor sends it on to an underwriting department for approval.
At the other end of the spectrum, some banks also expect commercial loan processers to process loans that are reaching maturity, to close them out of the system. This can entail communications with the customer to finalize the last payment and any other outstanding fees or information that must be obtained prior to the date of maturity.
The job outlook for all commercial loan personnel is good in the next ten years. According to the U.S. Bureau of Labor Statistics, most job openings will occur to replace retiring employees or those taking other positions. The number of all commercial loan jobs (not necessarily just commercial loan processors) is expected to increase 10% by 2018.
Commercial loan processors are required to have a high school diploma, and some banks may prefer processors with some college coursework in business-related fields. Processing commercial loans often includes relating basic business spreadsheets such as profit and loss, cash flow analysis, etc. and having some basic understanding of business accounting is considered a plus with this job.
Knowledge, Skills, and Abilities
Knowledge of basic business accounting, as mentioned above, is considered very helpful to commercial loan processors. Banks will provide on the job training as far as their actual loan processing goes, but having some knowledge of the bank’s commercial loan products and policies, as well as federal lending laws is also helpful.
In addition, commercial loan processors should have good math, communication, and organizational skills. A lot of the processing work will involve entering the loan package into the bank’s computer system, so having good computer skills is also a must. The commercial loan processor will also need to work as part of an overall team to move the loan through the application process and ensure a speedy approval, so must be flexible and have a positive attitude when it comes to working with others.
The average salary for commercial loan processors can vary widely from bank to bank and state to state. Commercial loan processors can earn as little as $24,000 per year all the way up to $42,000 in the Midwest, $27,000 to $47,000 on the West coast, and $28,000 to $50,000 in New York City. Here’s the latest salary information:
Potential Career Paths
Commercial or business loan processors are considered entry level positions. While they have more responsibility and pay better than teller or other entry level positions, they are still entry level, so commercial loan processors have only one way to go, and that’s up. Commercial or business loan processors can advance their careers, especially at larger banks, by becoming senior processors, handling more complicated and larger loan packages. Successful loan processors can also become supervisors or managers of their departments. Or business or commercial loan processors might choose to become commercial or business bankers, but will most likely need to obtain a college degree before earning that promotion.