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Mortgage Underwriter Job Description

The duties of mortgage underwriters carry huge responsibilities in financial industry. If you are aspiring to become a mortgage underwriter, it is essential to know some of the salient features on this particular career.

What is a mortgage underwriter?

The mortgage underwriter is responsible in approving or disapproving loan application in mortgage. The underwriting procedure includes evaluating and verifying loan applications and determining if the client has the capacity to repay the mortgage loan.

Duties of a mortgage underwriter

  • Mortgage underwriters are responsible in deciding to approve or deny client’s mortgage loans according to relevant information being provided at their loan applications.
  • A mortgage underwriter verifies employment along with income information, provide reviews on credit history and compute the borrower’s assets and collaterals.
  • They ensure that the specifications of properties and terms of loans meet the requirements of the financial institution and with the government regulations.
  • Once loan applications have been thoroughly evaluated and assessments have been made to determine the degree of risk, mortgage underwriters will then document the relevant reasons for the approval or disapproval of loans and add the following documentation into its loan file.
  • Loan files are then returned to its original loan office wherein a loan committee reviews it accordingly. A mortgage underwriter works in financial institutions or large or small mortgage companies all over United States.

Condition of Work

Mortgage underwrites mostly work in the office of any financial institutions and mortgage companies. They deal with numbers, calculations and must possess a good auditing and analytical skills including a firm knowledge on math. A good skill in decision making is also vital since the major role of mortgage underwriters are deciding and evaluating whether to approve or deny the client’s loan application.

Educational Requirements

In order to become a mortgage underwriter, a bachelor’s degree in business, banking, finance or any related field is essential. Having an associate degree in financing or mortgage banking may also qualify. Some employers also hire candidates with a degree in accounting and business law.

Occupation and Progress

A mortgage underwriter may initially enter as an underwriter trainee or assistant underwriter. If the aspiring candidate gains more work experience in the related field, he can then be qualified for a higher position with a great number of roles and responsibilities as a mortgage underwriter or a senior underwriter.

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