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Lender vs consumer loan underwriter

The differences between lenders and consumer loan underwriters can be seen in a few details. Each job has different responsibilities and duties. It typically takes 4-6 years to become both a lender and a consumer loan underwriter. Additionally, a consumer loan underwriter has an average salary of $53,525, which is higher than the $37,723 average annual salary of a lender.

The top three skills for a lender include customer service, loan applications and business development. The most important skills for a consumer loan underwriter are financial statements, loan applications, and strong analytical.

Lender vs consumer loan underwriter overview

LenderConsumer Loan Underwriter
Yearly salary$37,723$53,525
Hourly rate$18.14$25.73
Growth rate4%4%
Number of jobs6,46517,495
Job satisfaction--
Most common degreeBachelor's Degree, 63%Bachelor's Degree, 66%
Average age4545
Years of experience66

What does a lender do?

A Lender is a financial institution, an individual, or a private or public group that provides loans to a business or an individual. As a lender, you will evaluate a borrower's creditworthiness by assessing loan applications. You will be responsible for determining an applicant's financial eligibility and all applicable metrics and ratios. Other duties might include setting up plans for debt payment, counseling clients on restrictions and policies, and maintaining and updating account records. Also, you will need to update your knowledge on the different loan types and financial services.

What does a consumer loan underwriter do?

A consumer loan underwriter, or often known as a loan officer, is a financial professional who works at a credit union or other financial institution to approve or disapprove loans to clients. Consumer loan underwriters must review and verify the information provided by loan applicants and then decide on approving or denying a loan according to the policies of the institution. They must determine maximum loss potential by identifying all loans that are associated with a borrower where fraud may have occurred. Consumer loan underwriters must also demonstrate experience in underwriting conventional and FHA loans.

Lender vs consumer loan underwriter salary

Lenders and consumer loan underwriters have different pay scales, as shown below.

LenderConsumer Loan Underwriter
Average salary$37,723$53,525
Salary rangeBetween $25,000 And $55,000Between $37,000 And $76,000
Highest paying CitySeattle, WANew York, NY
Highest paying stateSouth DakotaNew York
Best paying companyCitiMarcus & Millichap
Best paying industryFinanceFinance

Differences between lender and consumer loan underwriter education

There are a few differences between a lender and a consumer loan underwriter in terms of educational background:

LenderConsumer Loan Underwriter
Most common degreeBachelor's Degree, 63%Bachelor's Degree, 66%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Lender vs consumer loan underwriter demographics

Here are the differences between lenders' and consumer loan underwriters' demographics:

LenderConsumer Loan Underwriter
Average age4545
Gender ratioMale, 49.2% Female, 50.8%Male, 42.6% Female, 57.4%
Race ratioBlack or African American, 9.3% Unknown, 4.6% Hispanic or Latino, 16.3% Asian, 6.3% White, 62.9% American Indian and Alaska Native, 0.5%Black or African American, 9.2% Unknown, 4.6% Hispanic or Latino, 15.9% Asian, 6.4% White, 63.5% American Indian and Alaska Native, 0.5%
LGBT Percentage8%8%

Differences between lender and consumer loan underwriter duties and responsibilities

Lender example responsibilities.

  • Manage a multifacete commercial real estate investment firm.
  • Coordinate the real estate transactions including appraisals, inspections, loan origination and timely closing.
  • Point of contact between external company affiliate loan origination branches and licensing agencies.
  • Complete quarterly updates on all regulations and requirements to maintain NMLS nationwide licensing program.
  • Work directly with consumers as well as real estate agents, CPA's and attorneys.

Consumer loan underwriter example responsibilities.

  • Ensure proper coding are accomplished by determining the appropriate code in accordance with ICD-9 and CPT guidelines.
  • Innovate technical solutions, including development of complex macros within MSP, to automate work and reduce manual processes
  • Manage a pipeline of fund TRID loans for completeness so they can be deliver and purchase by the required investor.
  • Manage the organization's HMDA data and accurately complete the government reporting annually.
  • Render underwritten decisions and subsequently clear conditions per underwriting policies and procedures, including knowledge of FNMA and FMLMC guidelines.
  • Generate and distribute IRB committee meeting minutes in accordance with appropriate federal regulations.
  • Show more

Lender vs consumer loan underwriter skills

Common lender skills
  • Customer Service, 15%
  • Loan Applications, 8%
  • Business Development, 6%
  • Bank Products, 6%
  • Origination, 6%
  • Loan Portfolio, 5%
Common consumer loan underwriter skills
  • Financial Statements, 12%
  • Loan Applications, 11%
  • Strong Analytical, 8%
  • Credit Reports, 7%
  • Credit Decisions, 6%
  • Compliance Reviews, 4%

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