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Loan originator vs commercial underwriter

The differences between loan originators and commercial underwriters can be seen in a few details. Each job has different responsibilities and duties. Additionally, a commercial underwriter has an average salary of $59,051, which is higher than the $41,291 average annual salary of a loan originator.

The top three skills for a loan originator include customer service, origination and FHA. The most important skills for a commercial underwriter are real estate, customer service, and financial analysis.

Loan originator vs commercial underwriter overview

Loan OriginatorCommercial Underwriter
Yearly salary$41,291$59,051
Hourly rate$19.85$28.39
Growth rate4%-4%
Number of jobs10,71631,908
Job satisfaction--
Most common degreeBachelor's Degree, 61%Bachelor's Degree, 75%
Average age4544
Years of experience6-

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.

What does a commercial underwriter do?

A commercial underwriter is responsible for processing commercial loan applications, evaluating payment agreements and terms of service, validating customers' information, and requesting additional documents as needed. Commercial underwriters analyze the credit qualifications of an applicant, including financial history, account statements, and outstanding loan applications, if any. They identify potential credit risks for the loan request and advice the applicants for alternative loan options according to their needs and qualifications. A commercial underwriter responds to the applicants' inquiries and concerns regarding their loan applications and provides timely decisions for their requests.

Loan originator vs commercial underwriter salary

Loan originators and commercial underwriters have different pay scales, as shown below.

Loan OriginatorCommercial Underwriter
Average salary$41,291$59,051
Salary rangeBetween $28,000 And $60,000Between $41,000 And $84,000
Highest paying CityNew York, NYOlympia, WA
Highest paying stateSouth DakotaWashington
Best paying companyCentennial BankJ.P. Morgan
Best paying industryTransportationFinance

Differences between loan originator and commercial underwriter education

There are a few differences between a loan originator and a commercial underwriter in terms of educational background:

Loan OriginatorCommercial Underwriter
Most common degreeBachelor's Degree, 61%Bachelor's Degree, 75%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Loan originator vs commercial underwriter demographics

Here are the differences between loan originators' and commercial underwriters' demographics:

Loan OriginatorCommercial Underwriter
Average age4544
Gender ratioMale, 54.0% Female, 46.0%Male, 48.7% Female, 51.3%
Race ratioBlack 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%Black or African American, 9.9% Unknown, 2.5% Hispanic or Latino, 9.3% Asian, 5.5% White, 72.4% American Indian and Alaska Native, 0.4%
LGBT Percentage8%9%

Differences between loan originator and commercial underwriter duties and responsibilities

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

Commercial underwriter example responsibilities.

  • Handle new and renewal multi-line policies.
  • Quoted new business and handle multi-line commercial accounts for this retailer.
  • Front office administration; maintain A/R and A/P for 1000+ commercial lines clients and 2000+ personal lines clients.
  • Market banking services to individuals, as well as to small businesses and corporations through networking and cross-selling.
  • Update loan origination systems to ensure that pipeline reports reflect the most current status for active loan in process.
  • Work along with the owner and accounting staff on all financial matters, A/R, A/P, payroll, and taxes.
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Loan originator vs commercial underwriter skills

Common loan originator skills
  • Customer Service, 18%
  • Origination, 9%
  • FHA, 6%
  • Va, 6%
  • Phone Calls, 6%
  • Excellent Interpersonal, 5%
Common commercial underwriter skills
  • Real Estate, 10%
  • Customer Service, 8%
  • Financial Analysis, 8%
  • Credit Analysis, 6%
  • Cash Flow, 4%
  • Risk Management, 4%

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