Loan Clerks

Career summary

#No state alt. titles CJ

Loan clerks help customers and loan officers manage the paperwork associated with borrowing and repaying money.

Loan clerks interview people who apply for loans. They record financial information and help applicants fill out legal forms. They answer questions and advise applicants on matters concerning the loan process.

Clerks work out the loan interest, principal amount, payments, and closing costs. They contact credit bureaus and other sources to verify applicants' credit. Clerks confirm the value of the collateral put up by applicants. They forward applications to underwriters, including their suggestions about approving or denying loans. When loan requests are accepted or denied, clerks inform the applicants.

Loan clerks gather documents for closing, such as title abstracts, insurance and loan forms, and tax receipts. They check all documentation to make sure they are accurate.

Clerks give loan and repayment schedules to customers. When customers make payments on their loan, clerks accept and record them. They review accounts to see that customers are making payments on time. They may need to decide whether to extend credit on overdue accounts.

Some clerks may schedule and manage mortgage meetings. It is important for clerks to maintain accurate and organized files and records.

Related careers

This career is part of the Finance cluster of careers.

Related careers include:

• Bank Tellers
• Billing Clerks
• Bookkeeping and Accounting Clerks
• Brokerage Clerks
• General Office Clerks
• Insurance Policy and Claims Clerks
• New Accounts Clerks
• Order Clerks
• Secretaries
• Tax Examiners
• Tax Preparers

Job duties

Task list

The following list of tasks is specific to loan clerks.

• Interview people who ask for loans and help them complete application forms.
• Work out interest, principal, payment, and closing costs.
• Prepare loan applications and various banking and legal forms.
• Use computers to record loan and credit applications and payments.
• Check applicants' credit and personal references. Check the value of collateral offered by customers to secure loans.
• Process loan applications for review by underwriters. Include recommendations about whether to grant loans.
• Notify customers whether or not their loans were approved or to request additional information.
• Check to make sure information is correct on loan applications and closing forms.
• Review customer accounts. Determine if customers are making payments on schedule and are complying with other terms of the loan. Accept payment on accounts.
• Answer questions and advise customers about loans and processes.
• Set up credit limits and grant credit extensions on accounts that are overdue.
• Contact credit bureaus to obtain a customer's credit score.
• File and maintain loan records.
• May order property or mortgage insurance.
• May schedule mortgage closings.

Common work activities

Loan clerks perform the following tasks. These tasks are common to many careers.

• Use computers
• Get information needed to do the job
• Perform for or work with the public
• Evaluate information against standards
• Process information
• Communicate with supervisors, peers, or subordinates
• Make decisions and solve problems
• Establish and maintain relationships
• Update and use job-related knowledge
• Analyze data or information
• Organize, plan, and prioritize work
• Identify objects, actions, and events
• Communicate with people outside the organization
• Explain the meaning of information to others
• Perform administrative tasks
• Document and record information
• Resolve conflicts and negotiate with others
• Monitor events, materials, and surroundings
• Think creatively
• Inspect equipment, structures, or materials
• Convince others to buy goods or change their minds or actions

Work requirements

Working conditions

In a typical work setting, loan clerks:

Interpersonal relationships

• Have a very high level of social contact. They are in constant contact with applicants and loan officers.
• Communicate by telephone, e-mail, and in person on a daily basis. They also write letters and memos, but much less frequently.
• Are responsible for the work done by other clerks.
• May on occasion be placed in conflict situations in which they must deal with rude or angry customers.
• Usually work as part of a team.

Physical work conditions

• Always work indoors.
• May work close to others, such as when sharing office space.
• Occasionally work in noisy offices.

Work performance

• Must be exact in their work and be sure all details are done. Errors could keep qualified applicants from getting loans.
• Repeat the same physical and mental activities.

Hours/travel

• May work part time or full time. Schedules are usually regular and during standard business hours.
• May work overtime during busy periods.

Physical demands

Loan clerks frequently:

• Sit for long periods of time.
• Repeat the same movements.

It is important for loan clerks to be able to:

• Understand the speech of another person.
• Speak clearly so listeners can understand.
• See details of objects that are less than a few feet away.

It is not as important, but still necessary, for loan clerks to be able to:

• See details of objects that are more than a few feet away.
• Use fingers to grasp, move, or assemble very small objects.
• See differences between colors, shades, and brightness.
• Hear sounds and recognize the difference between them.
• Focus on one source of sound and ignore others.

Skills and abilities

Loan clerks need to:

Communicate

• Listen to others and ask questions.
• Understand written information.
• Understand spoken information.
• Speak clearly so listeners can understand.
• Read and understand work-related materials.
• Write clearly so other people can understand.

Reason and problem solve

• Follow guidelines to arrange objects or actions in a certain order.
• Analyze ideas and use logic to determine their strengths and weaknesses.
• Notice when something is wrong or is likely to go wrong.
• Combine several pieces of information and draw conclusions.
• Use reasoning to discover answers to problems.
• Recognize the nature of a problem.
• Understand new information or materials by studying and working with them.
• Judge the costs and benefits of a possible action.
• Concentrate and not be distracted while performing a task.
• Develop rules that group items in various ways.
• Think of new ideas about a topic.

Use math and science

• Choose a mathematical method or formula to solve problems.
• Use math skills to solve problems.
• Add, subtract, multiply, and divide quickly and correctly.

Manage oneself, people, time, and things

• Manage the time of self and others.
• Check how well one is learning or doing something.

Work with people

• Be aware of others' reactions and understand the possible causes.
• Change behavior in relation to others' actions.
• Look for ways to help people.
• Teach others how to do something.
• Persuade others to approach things differently.

Education and training

Educational programs

The programs of study listed below will help you prepare for the occupation or career cluster you are exploring.

Programs of study directly related to this occupation

• Accounting Technology and Bookkeeping
• Office Support

Other programs of study to consider

• Finance
• Project Management

Training

To work as a loan clerk, you typically need to:

• have a high school diploma or equivalent; and
• complete short-term, on-the-job training.

Education after high school

Formal training is not required for this occupation. However, some credit workers take courses offered by banking and credit associations, vocational schools, or colleges and universities.

On-the-job training

Most loan clerks learn their skills through on-the-job training. As a new clerk, you work under the supervision of an experienced clerk or loan officer. Some firms offer formal training. Training may include phone etiquette, computer use, and customer service skills. Training generally lasts up to one month.

Helpful high school courses

You should take a general high school curriculum that meets the state's graduation requirements. You will be required to take both math and science classes to graduate.

Helpful electives to take in high school that prepare you for this career include:

• Banking and Finance
• Computer Applications
• Consumer Law
• Personal Finance

The courses listed above are meant to help you create your high school plan. If you have not already done so, talk to a school counselor or parent about the courses you are considering taking.

You should also check with a teacher or counselor to see if work-based learning opportunities are available in your school and community. These might include field trips, job shadowing, internships, and actual work experience. The goal of these activities is to help you connect your school experiences with real-life work.

Join some groups, try some hobbies, or volunteer with an organization that interests you. By participating in activities you can have fun, make new friends, and learn about yourself. Maybe one of them will help direct you to a future career. Here are examples of activities and groups that may be available in your high school or community.

Things to know

Most employers prefer to hire loan clerks who have at least a high school diploma or equivalent. They look for applicants who have good communication skills. They also look for good telephone and organizational skills. Employers prefer to hire people who can pay attention to details and meet deadlines. Loan clerks must be able to enter and retrieve data quickly from computers.

Job listings

Listed below are links to job categories from the National Labor Exchange that relate to this career. Once you get a list of jobs, you can view information about individual jobs and find out how to apply. If your job search finds too many openings, or if you wish to search for jobs outside of Washington, you will need to refine your search.

• Loan Interviewers and Clerks 

To get a listing of current jobs from the WorkSource system, go to the WorkSource website .

Wages

Wages vary by employer and area of the country. The clerk's level of experience and responsibility also affect wages.

Loan clerks who work full time usually receive benefits. Typical benefits include sick leave, paid vacation, and health insurance.

Employment and outlook

Washington outlook

The table below provides information about the number of workers in this career in various regions. It also provides information about the expected growth rate and future job openings.

National employment

Major employers:

• Banks and credit unions
• Mortgage bankers and brokers
• Personal credit companies

National outlook

Demand for this occupation will grow due to tighter loan regulations that require people to review loan applications closely. Online applications will limit some growth.

Job openings will occur as people leave the occupation.

Other resources

Consumer Bankers Association 
1225 Eye Street NW, Suite 550
Washington, DC 20005
202.552.6373

References

Career cluster

• Finance

Career path

• Conventional (Business Operations)

O*Net  occupation

• Loan Interviewers and Clerks (43-4131.00) 

O*Net job zone 

• Job Zone 3 - Medium preparation needed. Previous work-related skill, knowledge, or experience is required for these occupations.

DOT occupations

• Credit Clerk (205.367-022) 
• Disbursement Clerk (219.367-046) 
• Mortgage Clerk (249.362-014) 
• Mortgage Loan Closer (249.362-018) 
• Mortgage Loan Processor (249.362-022) 
• Mortgage-closing Clerk (219.362-038) 

Holland occupational cluster

• Conventional/Enterprising/Social

COPSystem

• Clerical