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Underwriter vs credit officer

The differences between underwriters and credit officers can be seen in a few details. Each job has different responsibilities and duties. Additionally, a credit officer has an average salary of $129,478, 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 credit officer are risk management, credit risk, and credit analysis.

Underwriter vs credit officer overview

UnderwriterCredit Officer
Yearly salary$61,751$129,478
Hourly rate$29.69$62.25
Growth rate-4%17%
Number of jobs8,51060,323
Job satisfaction3-
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 69%
Average age4439
Years of experience-2

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 credit officer do?

A credit officer is responsible for evaluating financial documents and account statements to determine the eligibility of an applicant for a loan option. Credit officers communicate with the applicant to discuss the loan process, explain the terms of service, and provide them alternative options that would fit their payment ability and loan needs. They create financial reports and recommend the qualified applicant to the manager for approval. A credit officer should have excellent communication and analytical skills, ensuring that the loan policies adhere to the federal and state regulations.

Underwriter vs credit officer salary

Underwriters and credit officers have different pay scales, as shown below.

UnderwriterCredit Officer
Average salary$61,751$129,478
Salary rangeBetween $39,000 And $96,000Between $85,000 And $196,000
Highest paying CityBoston, MANew York, NY
Highest paying stateMassachusettsNew York
Best paying companyGoogleFarm Credit System
Best paying industryManufacturingFinance

Differences between underwriter and credit officer education

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

UnderwriterCredit Officer
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 69%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Underwriter vs credit officer demographics

Here are the differences between underwriters' and credit officers' demographics:

UnderwriterCredit Officer
Average age4439
Gender ratioMale, 38.4% Female, 61.6%Male, 64.4% Female, 35.6%
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, 8.0% Unknown, 2.7% Hispanic or Latino, 9.7% Asian, 10.7% White, 68.6% American Indian and Alaska Native, 0.3%
LGBT Percentage9%11%

Differences between underwriter and credit officer 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

Credit officer example responsibilities.

  • Manage credit risk and provide independent oversight of the bank portfolio.
  • Manage the global function for an ERP software company that has a niche market in manufacturing companies.
  • Manage SBA construction/tenant improvement projects submit until project is completed.
  • Partner with small and entrepreneurial business to develop business plans and assist business owners with achieving payroll.
  • Review clients file for compliance with: CIP, OFAC, HMDA, CRA and red flag activities.
  • Audit applications for HUD and IHDA compliance.
  • Show more

Underwriter vs credit officer skills

Common underwriter skills
  • Customer Service, 11%
  • Investor Guidelines, 6%
  • Mortgage Loans, 5%
  • Underwriting Guidelines, 5%
  • Financial Statements, 4%
  • FHA, 3%
Common credit officer skills
  • Risk Management, 10%
  • Credit Risk, 7%
  • Credit Analysis, 5%
  • Real Estate, 4%
  • Credit Approval, 4%
  • Portfolio Management, 4%

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