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Loan originator vs consumer loan underwriter

The differences between loan originators 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 originator and a consumer loan underwriter. Additionally, a consumer loan underwriter has an average salary of $53,525, 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 consumer loan underwriter are financial statements, loan applications, and strong analytical.

Loan originator vs consumer loan underwriter overview

Loan OriginatorConsumer Loan Underwriter
Yearly salary$41,291$53,525
Hourly rate$19.85$25.73
Growth rate4%4%
Number of jobs10,71617,495
Job satisfaction--
Most common degreeBachelor's Degree, 61%Bachelor's Degree, 66%
Average age4545
Years of experience66

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 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 originator vs consumer loan underwriter salary

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

Loan OriginatorConsumer Loan Underwriter
Average salary$41,291$53,525
Salary rangeBetween $28,000 And $60,000Between $37,000 And $76,000
Highest paying CityNew York, NYNew York, NY
Highest paying stateSouth DakotaNew York
Best paying companyCentennial BankMarcus & Millichap
Best paying industryTransportationFinance

Differences between loan originator and consumer loan underwriter education

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

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

Loan originator vs consumer loan underwriter demographics

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

Loan OriginatorConsumer Loan Underwriter
Average age4545
Gender ratioMale, 54.0% Female, 46.0%Male, 42.6% Female, 57.4%
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, 9.2% 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 originator and consumer loan 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

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 originator vs consumer loan underwriter skills

Common loan originator skills
  • Customer Service, 18%
  • Origination, 9%
  • FHA, 6%
  • Va, 6%
  • Phone Calls, 6%
  • Excellent Interpersonal, 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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