More about Mortgage Banking Careers

Skills Required

Some of the job skills needed for a career in mortgage banking are:

  • Mathematical skills
  • Analytical reasoning
  • Computer proficiency
  • Excellent communication skills, both verbal and written
  • Leadership ability
  • Problem-solving and decision-making skills
  • The ability to work well with others, especially as a member of a team
  • Organizational skills

Who Does What

Loan officers:

  • find potential clients
  • gather information about clients to ensure an informed decision regarding their creditworthiness and the probability of repayment
  • provide guidance to prospective borrowers who have problems qualifying for traditional loans
  • guide clients through the process of applying for a loan
  • explain the different types of loans and credit terms available to the applicant
  • answer questions about the process
  • may assist clients in filling out the application
  • begin the process of analyzing and verifying the information on the application
  • decide, in consultation with their managers, whether to grant the loan
  • arrange a repayment schedule with the client if the loan is approved

Other positions:

  • Loan underwriters specialize in evaluating a client's creditworthiness and may conduct a financial analysis or other risk assessment.
  • Loan collection officers contact borrowers with delinquent loan accounts to help them find a method of repayment to avoid their defaulting on the loan. If a repayment plan cannot be developed, the loan collection officer initiates collateral liquidation, in which the lender seizes the collateral used to secure the loan — a home or car, for example — and sells it to repay the loan.

How a Mortgage Loan Is Set Up

  • The loan originator or mortgage broker accepts the application for the mortgage loan.
  • The application is turned over to a loan processor, who verifies the data provided with the applicant's employer or bank.
  • If all data matches up in the application, the processor gives the loan to an underwriter. The underwriter makes the decision on whether to extend credit.
  • The loan closing typically occurs at a title company.
  • After the loan is closed, it will be taken over by a loan servicing department of a company that sets up the loan for payment collection and administration.