What does a Mortgage Underwriter do?

Mortgage Underwriters determine whether mortgage applicants receive their requested loan. These financial professionals use credit history, debt ratios and current income to assess risk levels and the likelihood of repayment. Mortgage Underwriters can help support risk mitigation and maintain ethical lending practices. For example, they may identify errors or concerns in financial documents or deny high-risk loans based on company policy.

Mortgage Underwriter skills and qualifications

Your Mortgage Loan Underwriter job description might include these qualifications:

• Proficiency with underwriting software, credit scoring systems and other tech-driven financial tools
• Understanding of financial documents, including credit scores, bank statements and tax forms
• Knowledge of industry-standard risk assessment techniques, such as Loan-to-Value (LTV) ratios or the 5 C’s of credit: character, capacity, collateral, capital and conditions
• Up-to-date understanding of state and federal lending regulations, such as the Home Mortgage Disclosure Act (HMDA)
• Ability to make objective decisions regarding creditworthiness and risk levels
• Attention to detail to identify discrepancies

Mortgage Underwriter experience requirements

If you’re looking for an Underwriter for mortgages, your job description may emphasize previous experience in the mortgage or banking industries. Quality candidates may have worked as Loan Processors, Credit Analysts or as an assistant to a Loan Processor, Loan Officer or Mortgage Processor, which can lend transferable skills such as attention to detail, analytical skills and critical thinking.

Mortgage Underwriter education and training requirements

Since Mortgage Underwriters aren’t required to have a formal education in finance, you might rely on skills-first hiring and evaluate transferable skills over education requirements.

These professionals often benefit from technical and financial hard skills, such as risk modelling. However, successful Mortgage Underwriters may also have soft skills, such as customer service and communication skills, that help them collaborate with other employees and interact professionally with borrowers.

The Nationwide Multistate Licensing System (NMLS) and the National Association of Mortgage Underwriters (NAMU) specialize in certifying aspiring Mortgage Underwriters. These certifications can indicate that the recipient has specialized knowledge, verified skills and a commitment to continuing education. They can also serve as an alternative to formal degrees for candidates without financial experience.

Job description samples for similar positions

If this job description doesn’t align with what you’re looking for, you can look into these job description samples for similar positions:

• Mortgage Processor
• Mortgage Originator
• Loan Officer
• Loan Processor

Mortgage Underwriter job description FAQS

Do Mortgage Underwriters need a license?

Typically, Mortgage Underwriters in the United States don’t need a license as long as they work for a mortgage company with its own license. However, you can verify that the licensure needed for your open position complies with state requirements.

Mortgage Underwriters working as Independent Contractors may apply for a Mortgage Loan Originator (MLO) license. This process includes completing educational requirements, an exam and background checks.

Where do Mortgage Underwriters work?

Mortgage Underwriters generally work for financial institutions that issue mortgages, such as banks or credit unions. They may also work remotely, either in hybrid or fully remote work arrangements. You may also need a Mortgage Underwriter if you’re a mortgage lender. If you own or manage a third-party company specializing in processing outsourced mortgage requests, this role may also be beneficial.

Is Mortgage Underwriter an entry-level position?

Mortgage Underwriter isn’t generally considered an entry-level position because it requires advanced knowledge of the loan application process, documentation standards and regulatory guidelines.

Some companies offer entry-level positions in underwriting, with new hires assisting a Senior Mortgage Underwriter. These Underwriter Trainees or Junior Underwriters usually receive on-the-job training and assist with assessing loan applications.

What’s the difference between a Mortgage Underwriter and a Mortgage Processor?

Mortgage Processors generally collect credit reports and applicant information, such as employment status and income. Mortgage Underwriters then use this information to make a loan application decision.