LOAN / CREDIT CLERK

Loan clerks and credit authorizers, checkers and clerks review credit history and obtain the information needed to determine the creditworthiness of loan and credit card applicants. Credit clerks contact applicants, credit bureaus and other sources for information, and verify the completeness of loan applications. Credit checkers in credit bureaus secure, update and verify information for credit reports. These workers are often called credit investigators or reporters.

Clerks order appraisals from appraisal companies and secure tax forms, bank statements and any required government forms from applicants. If any information in the loan package is inaccurate or incomplete, clerks contact the proper source for further information. Mortgage loans are the primary type of loans handled by loan processors. Closing clerks obtain and prepare documents needed for real estate settlements. The closing clerks check to see that all documents are complete, accurate, and correctly signed, including deeds of trust, hazard insurance papers and title commitments—and that all loan conditions required for settlement have been met.

Credit authorizers approve charges against customers' existing accounts. Most charges are approved automatically by computer. However, when accounts are past due, overextended, invalid or show a change of address, sales persons refer transactions to credit authorizers located in a central office. Authorizers evaluate the customers' computerized credit records and payment histories and quickly decide whether or not to approve new charges. Authorizers may enter address changes and credit extensions into computer credit files.

Loan interviewers help potential borrowers fill out the loan application. Interviewers investigate the applicant's background and references, verify information on the application, and forward any findings, reports or documents to the appraisal department. Interviewers inform the applicant whether the loan has been accepted or denied.

SPECIAL WORKING CONDITIONS

Loan clerks and credit authorizers, checkers, and clerks usually work a 35- to 40-hour week. However, during particularly busy periods, they may work overtime. For credit clerks handling residential real estate, the busy periods are spring and summer and at the end of the month. For credit authorizers, busy periods are during the holiday shopping seasons and on store sale days. In fact, temporary workers are often hired as credit authorizers during peak workloads. In retail establishments, authorizers may work nights and weekends during store hours.

Some clerks may sit for long periods in front of video display terminals, which may cause eyestrain and headaches.

Because positions in these fields involve much telephone contact, good communication skills are a necessity. Good organizational skills and the ability to pay attention to detail are also important. Many clerks use computers to enter and retrieve data, so some computer skills and good typing speed are required.

No specific training is needed for most entry-level positions. However, loan closers and interviewers are often required to have at least a high school diploma and previous work experience, preferably in financial institutions, and some knowledge of underwriting.

New employees are generally trained on the job, working under the close supervision of more experienced employees, although some firms offer formal training. Some credit workers also take courses in credit offered by banking and credit associations, public and private vocational schools, and colleges and universities.

Workers at these positions typically advance to team leader of a small group of clerks, loan or credit department supervisor, underwriter or loan officer.

According to a 1996 survey of mortgage banking companies conducted by Carl D. Jacobs & Associates, the average salary for loan processors was $24,700, and the average salary for loan closers was $24,000. In addition to standard benefits, workers in retail establishments usually receive a discount on store purchases.

Loan clerks and credit authorizers, checkers, and clerks held about 252,000 jobs in 1996. About 8 out of 10 were employed by commercial banks and other depository institutions, and mortgage banks and other nondepository institutions. Other clerks were employed by insurance and real estate firms, credit reporting and collection agencies, and wholesale and retail trade establishments.

Little change is expected in the employment of loan clerks and credit authorizers, checkers and clerks over the 1996-2006 period. Employment in the banking industry, where most of these workers are found, is projected to decline slightly. However, demand for real estate, retail sales and other transactions requiring credit will grow, and the interpersonal nature of loan clerking and the judgment required of credit authorizers should ensure that computers do not significantly affect future employment levels. Many job openings will arise from replacement needs as loan clerks and credit authorizers, checkers and clerks leave the occupation for various reasons.

Job outlook in this occupation is affected by changes in the economy. During periods when credit or loans are restricted, the number of job openings for loan clerks and credit authorizers, checkers and clerks may be limited, and layoffs may occur.