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The differences between loan processors and loan originators can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 2-4 years to become a loan processor, becoming a loan originator takes usually requires 4-6 years. Additionally, a loan originator has an average salary of $41,291, which is higher than the $38,122 average annual salary of a loan processor.
The top three skills for a loan processor include loan applications, customer service and property appraisals. The most important skills for a loan originator are customer service, origination, and FHA.
| Loan Processor | Loan Originator | |
| Yearly salary | $38,122 | $41,291 |
| Hourly rate | $18.33 | $19.85 |
| Growth rate | -3% | 4% |
| Number of jobs | 16,228 | 10,716 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 46% | Bachelor's Degree, 61% |
| Average age | 42 | 45 |
| Years of experience | 4 | 6 |
A loan processor is responsible for assisting customers with their loan requests, ensuring their eligibility, and choosing the best loan options for their needs. Loan processors carefully review loan application documents and prepare loan proposals for underwriting, analyzing the applicant's financial status and credit scores, processing repayment plans, and adhering to banking and financial regulations. A loan processor must have excellent knowledge of the banking industry and processes to provide the best loan services for the customers efficiently and accurately.
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.
Loan processors and loan originators have different pay scales, as shown below.
| Loan Processor | Loan Originator | |
| Average salary | $38,122 | $41,291 |
| Salary range | Between $28,000 And $50,000 | Between $28,000 And $60,000 |
| Highest paying City | San Francisco, CA | New York, NY |
| Highest paying state | West Virginia | South Dakota |
| Best paying company | Stanford University | Centennial Bank |
| Best paying industry | Finance | Transportation |
There are a few differences between a loan processor and a loan originator in terms of educational background:
| Loan Processor | Loan Originator | |
| Most common degree | Bachelor's Degree, 46% | Bachelor's Degree, 61% |
| Most common major | Business | Business |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between loan processors' and loan originators' demographics:
| Loan Processor | Loan Originator | |
| Average age | 42 | 45 |
| Gender ratio | Male, 20.6% Female, 79.4% | Male, 54.0% Female, 46.0% |
| Race ratio | Black or African American, 12.5% Unknown, 4.3% Hispanic or Latino, 17.1% Asian, 7.4% White, 58.3% American Indian and Alaska Native, 0.4% | 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% |
| LGBT Percentage | 7% | 8% |