The Loan Operations function is responsible for all tasks between the submission of a loan application and the final funding (pending approval) of a loan. The steps between include application processing, underwriting (approval or denial of loan application), closing and post-closing. The main purpose of this step is to evaluate the prospective borrower's credit-worthiness (i.e., risk level) to determine if the financial institution (usually a bank) should lend to them, and if so, what the terms of the loan should be. After the loan has been processed, approved and funded, the borrowers work with the loan servicing function to process payments, update account information and answer any questions related to the terms of the mortgage. This group may be split up based on loan type - mortgages, consumer loans (auto, personal, home equity, etc.) and commercial loans.
Common Loan Operations job titles: Loan Originator, Loan Operations Specialist, Loan Closing Specialist, Loan Processor, Underwriter, Loan Support Specialist