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The differences between loan processors and underwriters can be seen in a few details. Each job has different responsibilities and duties. Additionally, an underwriter has an average salary of $61,751, 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 an underwriter are customer service, investor guidelines, and mortgage loans.
| Loan Processor | Underwriter | |
| Yearly salary | $38,122 | $61,751 |
| Hourly rate | $18.33 | $29.69 |
| Growth rate | -3% | -4% |
| Number of jobs | 16,228 | 8,510 |
| Job satisfaction | - | 3 |
| Most common degree | Bachelor's Degree, 46% | Bachelor's Degree, 66% |
| Average age | 42 | 44 |
| Years of experience | 4 | - |
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.
An underwriter's duties depend on the line of work or industry involved, such as mortgage companies, insurance, or lending firms. However, an Underwriter's responsibility will mainly revolve around using their extensive expertise on how a company will achieve financial gains, and assessing the possible financial risks of a client by reviewing various aspects to determine their capacity to uphold monetary obligations. Most of the time, the Underwriter's tasks will also involve evaluating a client's credit history, health, assets, overall financial history.
Loan processors and underwriters have different pay scales, as shown below.
| Loan Processor | Underwriter | |
| Average salary | $38,122 | $61,751 |
| Salary range | Between $28,000 And $50,000 | Between $39,000 And $96,000 |
| Highest paying City | San Francisco, CA | Boston, MA |
| Highest paying state | West Virginia | Massachusetts |
| Best paying company | Stanford University | |
| Best paying industry | Finance | Manufacturing |
There are a few differences between a loan processor and an underwriter in terms of educational background:
| Loan Processor | Underwriter | |
| Most common degree | Bachelor's Degree, 46% | Bachelor's Degree, 66% |
| Most common major | Business | Business |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between loan processors' and underwriters' demographics:
| Loan Processor | Underwriter | |
| Average age | 42 | 44 |
| Gender ratio | Male, 20.6% Female, 79.4% | Male, 38.4% Female, 61.6% |
| 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, 2.5% Hispanic or Latino, 9.6% Asian, 5.6% White, 72.7% American Indian and Alaska Native, 0.4% |
| LGBT Percentage | 7% | 9% |