How to Become a Banking & Commercial Loan Processing Clerk
Career News December 30, 2013When starting up a business, expanding a business, or embarking on a new business-related project, most people turn to banks to fund their financial needs. According to the U.S. Bureau of Labor Statistics (BLS), a 10% increase in job growth is expected between 2010 and 2020. Job growth means more revenue; more revenue means more opportunities for businesses to grow. The increase of businesses consequently means that more banking and commercial loan processing clerks will be needed.
Education & Experience
To become a commercial loan processor, you do not necessarily need a college degree. Most employers require a high school diploma or its equivalent, but some credit unions and banks do show a preference for candidates with at least an associate’s degree or certified training in business, finances, economics or some other related discipline.
While a college degree is not usually necessary for this position, 0-3 years of experience in the field is often required in combination with education. To gain experience in this field, it is a good idea to try to land entry-level positions within the bank, credit union, or other financial institution as a teller, sales representative, underwriter or loan officer.
Full competency of business loan policies and procedures, as well as working knowledge of laws that govern the Small Business Administration (SBA), Uniformed Standards of Professional Appraisal Practice (USPAP), and the Uniformed Commercial Code (UCC) will definitely benefit the potential candidate in landing the position.
Job Duties
The nature of a commercial loan processor’s role is predominantly to process loans. To do this efficiently, the processor will have to maintain and categorize clients’ files, regularly updating them in a timely fashion.
As a team player, the loan processor will work with partners and borrowers to ensure that all required documentation is received and accurate.
Preparing monthly board reports will be required, as well as creating journal entries to document all loan activity.
Loan processors will have to prepare financial ratios based upon the borrower’s financial statements. A loan processor clerk will need to make sure that all regulatory aspects of escrow impound accounts are adhered to and that required paperwork is completed and processed before the deadline.
Other Necessary Skills
If you desire to become a banking and commercial loan processing clerk, effective communication in writing and speaking is vital. You must be proficient in spreadsheet and word processing software applications and be a self-starter, able to stay on task with little to no supervision. You must have great interpersonal skills, the ability to work under pressure of deadlines, and an excellent eye for detail.
