What is the difference between a loan processor and an underwriter?

A loan processor assembles and verifies the application paperwork, including tax returns, income proof, bank statements, and appraisal and title orders, before passing the file to the underwriter, who evaluates the borrower's credit risk and makes the approval decision. Under the SAFE Act, a processor or underwriter who works under the supervision of a licensed originator and does not hold themselves out to the public does not need a state MLO license, while an independent contractor performing either role must be state-licensed.

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