Post job

Underwriter vs broker

The differences between underwriters and brokers can be seen in a few details. Each job has different responsibilities and duties. Additionally, a broker has an average salary of $124,861, which is higher than the $61,751 average annual salary of an underwriter.

The top three skills for an underwriter include customer service, investor guidelines and mortgage loans. The most important skills for a broker are brokerage, financial services, and insurance products.

Underwriter vs broker overview

UnderwriterBroker
Yearly salary$61,751$124,861
Hourly rate$29.69$60.03
Growth rate-4%5%
Number of jobs8,5102,770
Job satisfaction3-
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 66%
Average age4449
Years of experience--

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.

What does a broker do?

Brokers can either be a firm or an individual acting as an intermediary between a securities exchange and an investor. They often provide services to individual investors and traders who cannot engage directly with security exchanges, which only accept orders from their members. They provide investors and traders with an investment plan, market intelligence, and research. They may cross-sell some financial services and products offered by their brokerage firms. They are also typically classified as discount or full-service brokers.

Underwriter vs broker salary

Underwriters and brokers have different pay scales, as shown below.

UnderwriterBroker
Average salary$61,751$124,861
Salary rangeBetween $39,000 And $96,000Between $68,000 And $227,000
Highest paying CityBoston, MANew York, NY
Highest paying stateMassachusettsNew York
Best paying companyGoogleChild Guidance & Family Solutions
Best paying industryManufacturingInsurance

Differences between underwriter and broker education

There are a few differences between an underwriter and a broker in terms of educational background:

UnderwriterBroker
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 66%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Southern California

Underwriter vs broker demographics

Here are the differences between underwriters' and brokers' demographics:

UnderwriterBroker
Average age4449
Gender ratioMale, 38.4% Female, 61.6%Male, 63.8% Female, 36.2%
Race ratioBlack 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%Black or African American, 5.3% Unknown, 4.3% Hispanic or Latino, 13.2% Asian, 6.9% White, 70.1% American Indian and Alaska Native, 0.3%
LGBT Percentage9%13%

Differences between underwriter and broker duties and responsibilities

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

Broker example responsibilities.

  • Manage, lease and sell office condominiums on site.
  • Retail trader, fix income securities; manage client account activity; properly allocate client funds to appropriate investment options
  • Manage indexes, options, foreign equities, and short-selling positions that are compatible with clients' long-term investment goals.
  • Expand and maintain professional relationships with trading accounts including banks, hedge funds and portfolio managers.
  • Specialize in finding undervalue and/or overbought commodities by using fundamental and technical analysis that exist throughout the markets.
  • Install the oracle client for windows.
  • Show more

Underwriter vs broker skills

Common underwriter skills
  • Customer Service, 11%
  • Investor Guidelines, 6%
  • Mortgage Loans, 5%
  • Underwriting Guidelines, 5%
  • Financial Statements, 4%
  • FHA, 3%
Common broker skills
  • Brokerage, 17%
  • Financial Services, 9%
  • Insurance Products, 7%
  • Risk Management, 6%
  • Client Relationships, 6%
  • Real Estate Transactions, 5%

Browse business and financial jobs