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Loan processor vs loan originator

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 vs loan originator overview

Loan ProcessorLoan Originator
Yearly salary$38,122$41,291
Hourly rate$18.33$19.85
Growth rate-3%4%
Number of jobs16,22810,716
Job satisfaction--
Most common degreeBachelor's Degree, 46%Bachelor's Degree, 61%
Average age4245
Years of experience46

What does a loan processor do?

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.

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.

Loan processor vs loan originator salary

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

Loan ProcessorLoan Originator
Average salary$38,122$41,291
Salary rangeBetween $28,000 And $50,000Between $28,000 And $60,000
Highest paying CitySan Francisco, CANew York, NY
Highest paying stateWest VirginiaSouth Dakota
Best paying companyStanford UniversityCentennial Bank
Best paying industryFinanceTransportation

Differences between loan processor and loan originator education

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

Loan ProcessorLoan Originator
Most common degreeBachelor's Degree, 46%Bachelor's Degree, 61%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Loan processor vs loan originator demographics

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

Loan ProcessorLoan Originator
Average age4245
Gender ratioMale, 20.6% Female, 79.4%Male, 54.0% Female, 46.0%
Race ratioBlack 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 Percentage7%8%

Differences between loan processor and loan originator duties and responsibilities

Loan processor example responsibilities.

  • Manage a monthly pipeline averaging 100 files from origination to funding per month as a Jr. processor.
  • Review and verify documentation consistent with company policies and compliance of FNMA, FHLMC, FHA/VA, USDA guidelines.
  • Gather all documentation necessary to process mortgage loans in accordance with FNMA and credit union guidelines/requirements.
  • Disclose and re-disclose the LE's and Prelim TRID require CD.
  • Upload monthly reports to FHLMC including principal & interest reports, delinquent loans and appraisals.
  • Ensure conditions on USDA commitments are met and loan files are prepared for closing on time.
  • Show more

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

Loan processor vs loan originator skills

Common loan processor skills
  • Loan Applications, 22%
  • Customer Service, 20%
  • Property Appraisals, 5%
  • Mortgage Loans, 5%
  • Credit Reports, 5%
  • FHA, 4%
Common loan originator skills
  • Customer Service, 18%
  • Origination, 9%
  • FHA, 6%
  • Va, 6%
  • Phone Calls, 6%
  • Excellent Interpersonal, 5%

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