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Loan officer vs consumer loan underwriter

The differences between loan officers 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 loan officer and a consumer loan underwriter. Additionally, a consumer loan underwriter has an average salary of $53,525, which is higher than the $45,817 average annual salary of a loan officer.

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

Loan officer vs consumer loan underwriter overview

Loan OfficerConsumer Loan Underwriter
Yearly salary$45,817$53,525
Hourly rate$22.03$25.73
Growth rate4%4%
Number of jobs63,66317,495
Job satisfaction4.5-
Most common degreeBachelor's Degree, 61%Bachelor's Degree, 66%
Average age4545
Years of experience66

What does a loan officer do?

Loan officers are responsible for assisting borrowers on the best type of loans to avail and guiding the clients throughout the application process. A loan officer must be highly knowledgeable about different lending products, payment plans, loan regulations, and essential files for fast loan approval. Loan officers also act as the first point of contact, conducting an initial screening of the customers, process loan contracts and appropriate documentation, update account records, and respond to customer's inquiries. A loan officer also has the right to reject loan applicants who do not meet loan qualifications.

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.

Loan officer vs consumer loan underwriter salary

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

Loan OfficerConsumer Loan Underwriter
Average salary$45,817$53,525
Salary rangeBetween $30,000 And $69,000Between $37,000 And $76,000
Highest paying CityNew York, NYNew York, NY
Highest paying stateNew YorkNew York
Best paying companyBangor Savings BankMarcus & Millichap
Best paying industryFinanceFinance

Differences between loan officer and consumer loan underwriter education

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

Loan OfficerConsumer Loan Underwriter
Most common degreeBachelor's Degree, 61%Bachelor's Degree, 66%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Loan officer vs consumer loan underwriter demographics

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

Loan OfficerConsumer Loan Underwriter
Average age4545
Gender ratioMale, 55.3% Female, 44.7%Male, 42.6% Female, 57.4%
Race ratioBlack or African American, 9.0% Unknown, 4.6% Hispanic or Latino, 15.7% Asian, 6.3% White, 63.9% 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 loan officer and consumer loan underwriter duties and responsibilities

Loan officer example responsibilities.

  • Manage a multifacete commercial real estate investment firm.
  • Supervise and manage the processing staff and also underwrite conventional loans for correspondent lenders.
  • Follow up leads for refinance loans gather all applications and necessary paperwork to qualify applicants from origination to close of escrow.
  • Analyze available resources to determine suitable mortgage products (FHA, FNMA/FHLC) to meet clients' purchasing or refinancing goals.
  • Originate and process various loan products including government, conventional, portfolio, construction, USDA mortgages, home equity line/loans.
  • Originate FHA, VA, conventional, jumbo, and USDA loans, according to specific lender guidelines in broker environment.
  • Show more

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

Loan officer vs consumer loan underwriter skills

Common loan officer skills
  • Customer Service, 17%
  • Origination, 13%
  • Loan Origination, 5%
  • FHA, 5%
  • NMLS, 5%
  • Loan Products, 4%
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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