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Underwriter vs lender

The differences between underwriters and lenders 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 $37,723 average annual salary of a lender.

The top three skills for an underwriter include customer service, investor guidelines and mortgage loans. The most important skills for a lender are customer service, loan applications, and business development.

Underwriter vs lender overview

UnderwriterLender
Yearly salary$61,751$37,723
Hourly rate$29.69$18.14
Growth rate-4%4%
Number of jobs8,5106,465
Job satisfaction3-
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 63%
Average age4445
Years of experience-6

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 lender do?

A Lender is a financial institution, an individual, or a private or public group that provides loans to a business or an individual. As a lender, you will evaluate a borrower's creditworthiness by assessing loan applications. You will be responsible for determining an applicant's financial eligibility and all applicable metrics and ratios. Other duties might include setting up plans for debt payment, counseling clients on restrictions and policies, and maintaining and updating account records. Also, you will need to update your knowledge on the different loan types and financial services.

Underwriter vs lender salary

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

UnderwriterLender
Average salary$61,751$37,723
Salary rangeBetween $39,000 And $96,000Between $25,000 And $55,000
Highest paying CityBoston, MASeattle, WA
Highest paying stateMassachusettsSouth Dakota
Best paying companyGoogleCiti
Best paying industryManufacturingFinance

Differences between underwriter and lender education

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

UnderwriterLender
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 63%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Underwriter vs lender demographics

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

UnderwriterLender
Average age4445
Gender ratioMale, 38.4% Female, 61.6%Male, 49.2% Female, 50.8%
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, 9.3% Unknown, 4.6% Hispanic or Latino, 16.3% Asian, 6.3% White, 62.9% American Indian and Alaska Native, 0.5%
LGBT Percentage9%8%

Differences between underwriter and lender 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

Lender example responsibilities.

  • Manage a multifacete commercial real estate investment firm.
  • Coordinate the real estate transactions including appraisals, inspections, loan origination and timely closing.
  • Point of contact between external company affiliate loan origination branches and licensing agencies.
  • Complete quarterly updates on all regulations and requirements to maintain NMLS nationwide licensing program.
  • Work directly with consumers as well as real estate agents, CPA's and attorneys.

Underwriter vs lender skills

Common underwriter skills
  • Customer Service, 11%
  • Investor Guidelines, 6%
  • Mortgage Loans, 5%
  • Underwriting Guidelines, 5%
  • Financial Statements, 4%
  • FHA, 3%
Common lender skills
  • Customer Service, 15%
  • Loan Applications, 8%
  • Business Development, 6%
  • Bank Products, 6%
  • Origination, 6%
  • Loan Portfolio, 5%

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