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Loan originator vs lender

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 vs lender overview

Loan OriginatorLender
Yearly salary$41,291$37,723
Hourly rate$19.85$18.14
Growth rate4%4%
Number of jobs10,7166,465
Job satisfaction--
Most common degreeBachelor's Degree, 61%Bachelor's Degree, 63%
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 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.

Loan originator vs lender salary

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

Loan OriginatorLender
Average salary$41,291$37,723
Salary rangeBetween $28,000 And $60,000Between $25,000 And $55,000
Highest paying CityNew York, NYSeattle, WA
Highest paying stateSouth DakotaSouth Dakota
Best paying companyCentennial BankCiti
Best paying industryTransportationFinance

Differences between loan originator and lender education

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

Loan OriginatorLender
Most common degreeBachelor's Degree, 61%Bachelor's Degree, 63%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Loan originator vs lender demographics

Here are the differences between loan originators' and lenders' demographics:

Loan OriginatorLender
Average age4545
Gender ratioMale, 54.0% Female, 46.0%Male, 49.2% Female, 50.8%
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, 9.3% Unknown, 4.6% Hispanic or Latino, 16.3% Asian, 6.3% White, 62.9% American Indian and Alaska Native, 0.5%
LGBT Percentage8%8%

Differences between loan originator and lender 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

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.

Loan originator vs lender skills

Common loan originator skills
  • Customer Service, 18%
  • Origination, 9%
  • FHA, 6%
  • Va, 6%
  • Phone Calls, 6%
  • Excellent Interpersonal, 5%
Common lender skills
  • Customer Service, 15%
  • Loan Applications, 8%
  • Business Development, 6%
  • Bank Products, 6%
  • Origination, 6%
  • Loan Portfolio, 5%

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