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The differences between loan originators and lenders 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 lender. Additionally, a loan originator has an average salary of $41,291, which is higher than the $37,723 average annual salary of a lender.
The top three skills for a loan originator include customer service, origination and FHA. The most important skills for a lender are customer service, loan applications, and business development.
| Loan Originator | Lender | |
| Yearly salary | $41,291 | $37,723 |
| Hourly rate | $19.85 | $18.14 |
| Growth rate | 4% | 4% |
| Number of jobs | 10,716 | 6,465 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 61% | Bachelor's Degree, 63% |
| Average age | 45 | 45 |
| Years of experience | 6 | 6 |
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.
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.
Loan originators and lenders have different pay scales, as shown below.
| Loan Originator | Lender | |
| Average salary | $41,291 | $37,723 |
| Salary range | Between $28,000 And $60,000 | Between $25,000 And $55,000 |
| Highest paying City | New York, NY | Seattle, WA |
| Highest paying state | South Dakota | South Dakota |
| Best paying company | Centennial Bank | Citi |
| Best paying industry | Transportation | Finance |
There are a few differences between a loan originator and a lender in terms of educational background:
| Loan Originator | Lender | |
| Most common degree | Bachelor's Degree, 61% | Bachelor's Degree, 63% |
| Most common major | Business | Business |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between loan originators' and lenders' demographics:
| Loan Originator | Lender | |
| Average age | 45 | 45 |
| Gender ratio | Male, 54.0% Female, 46.0% | Male, 49.2% Female, 50.8% |
| Race ratio | Black 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, 9.3% Unknown, 4.6% Hispanic or Latino, 16.3% Asian, 6.3% White, 62.9% American Indian and Alaska Native, 0.5% |
| LGBT Percentage | 8% | 8% |