Why this matters:
Accurate information is key to the loan application process. Incorrect or incomplete information may lead lenders and underwriters to decisions that are not in their best interests. One of the essential tasks of a loan processor is to act like a detective, verifying data and ensuring borrower information is both true and complete.
What to listen for:
- An approach for verifying information such as bank statements and pay stubs
- An approach for confirming employment details
- Rigorous attention to detail and follow-up
Why this matters:
The global trend toward lending transparency laws such as the US’s federal Truth in Lending Act (TILA) makes lenders responsible for communicating to borrowers their repayment responsibilities, spelling out the costs of the loan, and the like. Great loan processor candidates can easily recite some of the factors they must convey to all borrowers.
What to listen for:
- An understanding of the regulatory environment around loan transparency
- Clear communication of crucial loan concepts, as if explained to borrowers
- Confidence with any required borrower disclosure compliance
Why this matters:
Technology has impacted every industry, including lending. Software platforms can now simplify and automate many of the more tedious manual workflows in lending, assisting with applicant information gathering, underwriting computations, ongoing loan payments, and the like. Strong loan processor candidates have put some of this software to use.
What to listen for:
- Reference to software aligned with your lending practices
- Understanding of how software makes loan processing more accurate and efficient
- An ease with technology and the willingness to learn new systems
Why this matters:
Borrowing can be stressful, and from time to time, borrowers may disagree with an institution’s refusal to extend capital, or with the amount of capital extended. The ability to handle such interactions with diplomacy, maintaining your brand reputation and alleviating relationship conflict, goes a long way in distinguishing the right candidate.
What to listen for:
- Ability to alleviate conflict
- Warmth and demonstrated listening skills
- Demonstrated capacity to explain loan decisions to customers, without added drama
Why this matters:
Like many employees of financial institutions, loan processors work in a highly collaborative environment. They must be able to work quickly and accurately so as not to create bottlenecks for their teammates — and they must themselves act as collegial teammates. Get a sense of how the candidate collaborates with colleagues and supports the people around them.
What to listen for:
- Strong communication skills in a group setting
- Eagerness to support colleagues
- Recognition of the role as part of a whole
Why this matters:
Unless in high-stakes circumstances, loan processors rarely work on only one loan application at a time. It’s more likely that they’ll be handling multiple applications, keeping track of the details of each. Great loan processor candidates have a strong recall for details and can avoid conflating applicant data.
What to listen for:
- Capacity to multitask when necessary
- A relaxed and confident approach within a busy workplace
- Ability to both recall and retain detail
Why this matters:
Motivated employees are successful employees. To keep performance high, loan processors would ideally be both extrinsically and intrinsically motivated. Good candidates will have ready answers that may include a strong belief in dispensing capital to worthy recipients.
What to listen for:
- Values in alignment with your company’s mission
- Intrinsic motivation beyond factors like compensation or benefits
- A desire to enable borrowers to build bigger businesses or live better lives
Why this matters:
Loan processors often deal directly with loan applicants. To be effective in their public-facing roles, it’s best if they are good at engaging people, have the capacity to listen — both actively and attentively, and can forge and maintain caring relationships.
What to listen for:
- Strong care and concern for customer satisfaction
- Professional attitude in interactions with customers
- Use of a referrals system or other method to both generate new leads and track approval ratings
Why this matters:
The importance of clear communication in the loan application process cannot be overstated. Loan processors should make sure that customers understand the scrutiny that their loan application will undergo so that they know what to expect and what they must provide to give themselves the best chances — and to keep the process positive and smooth.
What to listen for:
- Deep understanding of loan application process
- Ability to explain complicated financial terms in simplified language
- Capacity to maintain awareness of application status for customer inquiries
Contact a sales consultant.