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A loan coordinator serves a front line role in a bank's loan processing department. This person typically coordinates much of the legwork involved in reviewing a loan applicant's file and preparing it for underwriting. Much of the role centers on communication between the applicant and loan originator to ensure a file has all necessary materials for an effective loan decision.
Loan Analysis Support
A primary duty of the coordinator is to meet with the loan processor or originator to review applicant files. Loan requests usually need certain components for processing, including credit reports, employment verification, income documentation and bank statements. The coordinator reviews the file with a loan analyst to ensure all necessary information and documentation has been provided. The coordinator also does some basic screening before passing the file off to the processor for final review before underwriting.
When a loan application is incomplete, the coordinator usually has the responsibility of making a follow-up phone call or sending an e-mail to the applicant. In the follow-up, the coordinator needs to clearly explain to the applicant what he needs to send in or drop by to complete the application. Employers require coordinators to update applicant tracking files in their computer systems for easy status monitoring. This requirement helps a service representative answer questions when applicants call to check in on their files.
The goal of loan processing is to thoroughly review applications and screen files so that the underwriting process is a formality. In some cases, underwriters reject applications or request more information. Under these circumstances, it is the coordinator's responsibility to serve as liaison between the underwriter and applicant to resolve any problems. Common steps needed to finalize files include obtaining updated appraisals, additional documentation and signed statements. Accuracy and efficiency in resolving these problems contributes to the effectiveness of a coordinator.
The requirements for a particular coordinator role depend on the scope of the position. Some banks view the coordinator as an entry-level position that requires only a high school diploma and a few years of banking experience. For higher-level coordinator roles, you need a bachelor's in finance or a related field. You may also need banking experience. Desired skills include an eye for detail, organizational skills, teamwork and the ability to communicate clearly and effectively. You also need familiarity with loan processing regulations, though employers may provide this training on-the-job.
Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.