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Mortgage loan processor vs underwriter

The differences between mortgage 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 $43,594 average annual salary of a mortgage loan processor.

The top three skills for a mortgage loan processor include customer service, FHA and va. The most important skills for an underwriter are customer service, investor guidelines, and mortgage loans.

Mortgage loan processor vs underwriter overview

Mortgage Loan ProcessorUnderwriter
Yearly salary$43,594$61,751
Hourly rate$20.96$29.69
Growth rate-3%-4%
Number of jobs16,2768,510
Job satisfaction-3
Most common degreeBachelor's Degree, 50%Bachelor's Degree, 66%
Average age4244
Years of experience4-

What does a mortgage loan processor do?

A mortgage loan processor is a person who is responsible for the preparation of mortgage applications and any other paperwork. Mortgage loan processors interview the loan applicants, assist them in selecting the right mortgage, and approve or reject their applications. They are expected to have excellent communication, extraordinary interpersonal abilities, and strong attention to detail. Their job involves working with the loan officer and the underwriter. Also, they must be equipped with management skills and aptitude in math.

What does an underwriter do?

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.

Mortgage loan processor vs underwriter salary

Mortgage loan processors and underwriters have different pay scales, as shown below.

Mortgage Loan ProcessorUnderwriter
Average salary$43,594$61,751
Salary rangeBetween $33,000 And $57,000Between $39,000 And $96,000
Highest paying CitySan Francisco, CABoston, MA
Highest paying stateMassachusettsMassachusetts
Best paying companyAmplify Credit UnionGoogle
Best paying industryProfessionalManufacturing

Differences between mortgage loan processor and underwriter education

There are a few differences between a mortgage loan processor and an underwriter in terms of educational background:

Mortgage Loan ProcessorUnderwriter
Most common degreeBachelor's Degree, 50%Bachelor's Degree, 66%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Mortgage loan processor vs underwriter demographics

Here are the differences between mortgage loan processors' and underwriters' demographics:

Mortgage Loan ProcessorUnderwriter
Average age4244
Gender ratioMale, 21.7% Female, 78.3%Male, 38.4% Female, 61.6%
Race ratioBlack or African American, 13.3% Unknown, 4.3% Hispanic or Latino, 14.2% Asian, 6.8% White, 61.1% 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 Percentage7%9%

Differences between mortgage loan processor and underwriter duties and responsibilities

Mortgage loan processor example responsibilities.

  • Manage individual pipeline using the LPS system.
  • Manage a monthly pipeline averaging 100 files from origination to funding per month as a Jr. processor.
  • Process all types of loan products including FHA, VA, conventional, no income verification, and the self-employed borrower.
  • Assist with executing all loan sales in the secondary market to FNMA, FHLMC and private investors.
  • Verify and validate loan applications for conforming, FHA, VA applications via DU/LP and complex lender software programs.
  • Process USDA and conventional loans.
  • Show more

Underwriter example responsibilities.

  • Attain Jr. underwriter status and AUS underwriting authority.
  • Manage AUS findings and analyze approvals and results accordingly.
  • Complete initial review of appraisals, borrower credit documents, and DU/LP findings according to Fannie Mae and investor guidelines.
  • Research and develop SBA program.
  • Work on project putting together HPR policy.
  • Resolve issues preventing final disposition of REO properties.
  • Show more

Mortgage loan processor vs underwriter skills

Common mortgage loan processor skills
  • Customer Service, 22%
  • FHA, 6%
  • Va, 6%
  • Property Appraisals, 5%
  • Excellent Organizational, 5%
  • Investor Guidelines, 5%
Common underwriter skills
  • Customer Service, 11%
  • Investor Guidelines, 6%
  • Mortgage Loans, 5%
  • Underwriting Guidelines, 5%
  • Financial Statements, 4%
  • FHA, 3%

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