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Credit officer vs loan originator

The differences between credit officers and loan originators can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 1-2 years to become a credit officer, becoming a loan originator takes usually requires 4-6 years. Additionally, a credit officer has an average salary of $129,478, which is higher than the $41,291 average annual salary of a loan originator.

The top three skills for a credit officer include risk management, credit risk and credit analysis. The most important skills for a loan originator are customer service, origination, and FHA.

Credit officer vs loan originator overview

Credit OfficerLoan Originator
Yearly salary$129,478$41,291
Hourly rate$62.25$19.85
Growth rate17%4%
Number of jobs60,32310,716
Job satisfaction--
Most common degreeBachelor's Degree, 69%Bachelor's Degree, 61%
Average age3945
Years of experience26

What does a credit officer do?

A credit officer is responsible for evaluating financial documents and account statements to determine the eligibility of an applicant for a loan option. Credit officers communicate with the applicant to discuss the loan process, explain the terms of service, and provide them alternative options that would fit their payment ability and loan needs. They create financial reports and recommend the qualified applicant to the manager for approval. A credit officer should have excellent communication and analytical skills, ensuring that the loan policies adhere to the federal and state regulations.

What does a loan originator do?

A Loan Originator is a potential liaison between borrowers and lenders. They help borrowers complete loan applications and evaluate which loans are most appropriate for the customers.

Credit officer vs loan originator salary

Credit officers and loan originators have different pay scales, as shown below.

Credit OfficerLoan Originator
Average salary$129,478$41,291
Salary rangeBetween $85,000 And $196,000Between $28,000 And $60,000
Highest paying CityNew York, NYNew York, NY
Highest paying stateNew YorkSouth Dakota
Best paying companyFarm Credit SystemCentennial Bank
Best paying industryFinanceTransportation

Differences between credit officer and loan originator education

There are a few differences between a credit officer and a loan originator in terms of educational background:

Credit OfficerLoan Originator
Most common degreeBachelor's Degree, 69%Bachelor's Degree, 61%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Credit officer vs loan originator demographics

Here are the differences between credit officers' and loan originators' demographics:

Credit OfficerLoan Originator
Average age3945
Gender ratioMale, 64.4% Female, 35.6%Male, 54.0% Female, 46.0%
Race ratioBlack or African American, 8.0% Unknown, 2.7% Hispanic or Latino, 9.7% Asian, 10.7% White, 68.6% American Indian and Alaska Native, 0.3%Black or African American, 9.2% Unknown, 4.6% Hispanic or Latino, 16.1% Asian, 6.4% White, 63.2% American Indian and Alaska Native, 0.5%
LGBT Percentage11%8%

Differences between credit officer and loan originator duties and responsibilities

Credit officer example responsibilities.

  • Manage credit risk and provide independent oversight of the bank portfolio.
  • Manage the global function for an ERP software company that has a niche market in manufacturing companies.
  • Manage SBA construction/tenant improvement projects submit until project is completed.
  • Partner with small and entrepreneurial business to develop business plans and assist business owners with achieving payroll.
  • Review clients file for compliance with: CIP, OFAC, HMDA, CRA and red flag activities.
  • Audit applications for HUD and IHDA compliance.
  • Show more

Loan originator example responsibilities.

  • Supervise and manage the processing staff and also underwrite conventional loans for correspondent lenders.
  • Complete yearly the NMLS continuing education requirements.
  • Direct lender with FNMA while maintaining all loan servicing.
  • Increase revenues and product awareness by cross-selling service lines and packages.
  • Complete a rigorous training program and have obtained 25 NMLS state licensing requirements to be a loan originator.
  • Review FHA case number assignments, mortgage credit rejects and refinances authorizations to determine qualification.
  • Show more

Credit officer vs loan originator skills

Common credit officer skills
  • Risk Management, 10%
  • Credit Risk, 7%
  • Credit Analysis, 5%
  • Real Estate, 4%
  • Credit Approval, 4%
  • Portfolio Management, 4%
Common loan originator skills
  • Customer Service, 18%
  • Origination, 9%
  • FHA, 6%
  • Va, 6%
  • Phone Calls, 6%
  • Excellent Interpersonal, 5%

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