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Credit risk analyst vs underwriter

The differences between credit risk analysts and underwriters can be seen in a few details. Each job has different responsibilities and duties. Additionally, a credit risk analyst has an average salary of $85,376, which is higher than the $61,751 average annual salary of an underwriter.

The top three skills for a credit risk analyst include risk management, SAS and SQL. The most important skills for an underwriter are customer service, investor guidelines, and mortgage loans.

Credit risk analyst vs underwriter overview

Credit Risk AnalystUnderwriter
Yearly salary$85,376$61,751
Hourly rate$41.05$29.69
Growth rate11%-4%
Number of jobs32,5788,510
Job satisfaction-3
Most common degreeBachelor's Degree, 70%Bachelor's Degree, 66%
Average age3944
Years of experience2-

What does a credit risk analyst do?

A credit risk analyst's primary role is to assess loan and purchase applications to determine a client's ability to uphold financial obligations. Their responsibilities revolve around performing various analyzation techniques to evaluate financial risks, maintain records of all applications and relevant data, and provide advice on businesses on whether to approve or decline the credit application. Furthermore, a credit risk analyst may perform clerical tasks such as producing progress reports and presentations, responding to inquiries, and coordinating with all departments.

What does an underwriter do?

An underwriter's duties depend on the line of work or industry involved, such as mortgage companies, insurance, or lending firms. However, an Underwriter's responsibility will mainly revolve around using their extensive expertise on how a company will achieve financial gains, and assessing the possible financial risks of a client by reviewing various aspects to determine their capacity to uphold monetary obligations. Most of the time, the Underwriter's tasks will also involve evaluating a client's credit history, health, assets, overall financial history.

Credit risk analyst vs underwriter salary

Credit risk analysts and underwriters have different pay scales, as shown below.

Credit Risk AnalystUnderwriter
Average salary$85,376$61,751
Salary rangeBetween $62,000 And $116,000Between $39,000 And $96,000
Highest paying CityNew York, NYBoston, MA
Highest paying stateNew YorkMassachusetts
Best paying companyWestern Alliance BankGoogle
Best paying industryGovernmentManufacturing

Differences between credit risk analyst and underwriter education

There are a few differences between a credit risk analyst and an underwriter in terms of educational background:

Credit Risk AnalystUnderwriter
Most common degreeBachelor's Degree, 70%Bachelor's Degree, 66%
Most common majorFinanceBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Credit risk analyst vs underwriter demographics

Here are the differences between credit risk analysts' and underwriters' demographics:

Credit Risk AnalystUnderwriter
Average age3944
Gender ratioMale, 56.4% Female, 43.6%Male, 38.4% Female, 61.6%
Race ratioBlack or African American, 7.6% Unknown, 2.6% Hispanic or Latino, 9.5% Asian, 10.5% White, 69.4% American Indian and Alaska Native, 0.3%Black or African American, 9.2% Unknown, 2.5% Hispanic or Latino, 9.6% Asian, 5.6% White, 72.7% American Indian and Alaska Native, 0.4%
LGBT Percentage11%9%

Differences between credit risk analyst and underwriter duties and responsibilities

Credit risk analyst example responsibilities.

  • Utilize data manipulation and quantitative analysis using VBA macros, SQL and advance excel knowledge to manage credit risk exposure.
  • Design and build portfolio management dashboard for senior management monthly credit strategy meetings using SAS.
  • Contribute significantly to credit portfolio analytics through integration of top-down macro risks with idiosyncratic issuer risks.
  • Perform monthly/quarterly operational functions supporting the SAS ETL processing to generate client profitability and performance measurement results.
  • Partner with municipal derivative marketing and trading risk associates to ensure seamless assimilation of individual trade characteristics.
  • Initiate behavior scorecard model for business strategy collection process by fitting logistic regression to longitudinal delinquency history data.
  • Show more

Underwriter example responsibilities.

  • Attain Jr. underwriter status and AUS underwriting authority.
  • Manage AUS findings and analyze approvals and results accordingly.
  • Complete initial review of appraisals, borrower credit documents, and DU/LP findings according to Fannie Mae and investor guidelines.
  • Research and develop SBA program.
  • Work on project putting together HPR policy.
  • Resolve issues preventing final disposition of REO properties.
  • Show more

Credit risk analyst vs underwriter skills

Common credit risk analyst skills
  • Risk Management, 14%
  • SAS, 9%
  • SQL, 9%
  • Strong Analytical, 5%
  • PowerPoint, 4%
  • Data Analysis, 4%
Common underwriter skills
  • Customer Service, 11%
  • Investor Guidelines, 6%
  • Mortgage Loans, 5%
  • Underwriting Guidelines, 5%
  • Financial Statements, 4%
  • FHA, 3%

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