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Lender vs mortgage underwriter

The differences between lenders and mortgage 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 mortgage underwriter. Additionally, a mortgage underwriter has an average salary of $55,721, 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 mortgage underwriter are customer service, work ethic, and FHA.

Lender vs mortgage underwriter overview

LenderMortgage Underwriter
Yearly salary$37,723$55,721
Hourly rate$18.14$26.79
Growth rate4%4%
Number of jobs6,4659,260
Job satisfaction--
Most common degreeBachelor's Degree, 63%Bachelor's Degree, 65%
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 mortgage underwriter do?

A mortgage underwriter is responsible for reviewing mortgage loan applications and deciding on its approval or rejection by evaluating the submitted documents and the applicant's eligibility. Mortgage underwriters create assessment reports, research on the applicant's credit score, analyze potential loan risk, and request for additional documentation as needed. A mortgage underwriter must have extensive knowledge of the loan disciplines and processes, including its legislative procedures and regulations, to provide accurate decisions or discuss necessary findings to the loan officer for advice.

Lender vs mortgage underwriter salary

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

LenderMortgage Underwriter
Average salary$37,723$55,721
Salary rangeBetween $25,000 And $55,000Between $38,000 And $80,000
Highest paying CitySeattle, WANew York, NY
Highest paying stateSouth DakotaNew Mexico
Best paying companyCitiCTBC Bank
Best paying industryFinanceProfessional

Differences between lender and mortgage underwriter education

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

LenderMortgage Underwriter
Most common degreeBachelor's Degree, 63%Bachelor's Degree, 65%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Lender vs mortgage underwriter demographics

Here are the differences between lenders' and mortgage underwriters' demographics:

LenderMortgage Underwriter
Average age4545
Gender ratioMale, 49.2% Female, 50.8%Male, 39.3% Female, 60.7%
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, 63.4% American Indian and Alaska Native, 0.5%
LGBT Percentage8%8%

Differences between lender and mortgage 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.

Mortgage underwriter example responsibilities.

  • Manage AUS findings and analyze approvals and results accordingly.
  • Involve with USDA and NH housing loans.
  • Obtain NMLS license in 2011 and real estate license in 2005.
  • Prepare and respond to compliance HMDA, NMLS, and ECOA relate inquiries.
  • Audit and analyze TIL, GFE and HUD documentation for accuracy to insure compliance.
  • Review MHA and FHA guidelines and calculate proper income to approve or decline loans for a temporary or permanent modification.
  • Show more

Lender vs mortgage underwriter skills

Common lender skills
  • Customer Service, 15%
  • Loan Applications, 8%
  • Business Development, 6%
  • Bank Products, 6%
  • Origination, 6%
  • Loan Portfolio, 5%
Common mortgage underwriter skills
  • Customer Service, 7%
  • Work Ethic, 6%
  • FHA, 5%
  • Va, 5%
  • Excellent Organizational, 4%
  • Excellent Interpersonal, 4%

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