 FINANCIAL REWARDS
With qualified Loan Underwriter training, you are typically a salaried employee of a bank or mortgage company. Presently Loan Underwriters receive compensation packages ranging between $45,000–$60,000 per year, depending upon their duties and responsibilities. Underwriters who work for private mortgage insurance companies receive approximately $40.00–$48.00 per hour. Hourly underwriting normally involves relocating on temporary assignments from two to four months, depending upon the volume of business being generated in different parts of the United States.
To become a Loan Underwriter, you generally must have a minimum of three years experience as a Loan Processor processing conventional and government loans.
Loan Underwriters who are FHA Direct Endorsement qualified typically receive an additional $5,000–$8,000 annually.
DUTIES & RESPONSIBILITIES
The position of Loan Underwriter carries the final responsibility of protecting the mortgage company from loans that could have a high probability of default, leading to foreclosure. It is the Loan Underwriter's responsibility to be fully aware of all current underwriting guidelines, policies, and procedures. This includes knowing how to detect fraud, and being aware of "red flags" when reviewing the documentation. It is also the Loan Underwriter's responsibility to ensure that the property is acceptable.
Good common sense, coupled with a complete knowledge of underwriting guidelines, is required in order to be able to make a fair decision on whether to accept or decline a loan application. Guidelines are only guidelines, not rules. Being too lenient could lead to foreclosures; being too strict could result in unfair denial of loans.
CAREER ADVANCEMENT
Most Loan Underwriters begin as Junior Loan Underwriters, working closely with the Senior Loan Underwriter until they are familiar with the proper procedures. Career advancement includes moving into the position of Senior Loan Underwriter, FHA Direct Endorsement Underwriter, or Underwriting Manager. Some Loan Underwriters become trainers and train the staff in conventional and government underwriting guidelines.
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