Loan Underwriting
About Loan Underwriting
In order to get final approval for your loan, your lender must first verify your income, assets, debt, and property information. This process is known as underwriting. A financial specialist known as an underwriter examines your financial situation and determines the level of risk that a lender will accept if they decide to grant you a loan. What occurs behind the scenes after you submit your application is called loan underwriting. It is the procedure a lender does to thoroughly review your credit and financial history in order to decide if you are suitable for a loan.
Why is Loan Underwriting important?
By appropriately valuing investment risk, underwriting contributes to the establishment of suitable premiums, the creation of a market for securities, and the setting of reasonable borrowing rates for loans. The key to good portfolio quality is an efficient underwriting and loan approval procedure, and one of the major responsibilities of the function is to minimize unnecessary risks.
Who should take the Loan Underwriting Exam?
- Underwriter
- Loan processor
- Team leader
- Branch Manager
- Sales manager
Loan Underwriting Certification Course Outline
- Basic and Advance mortgage underwriting issues
- Conventional, FHA, and VA underwriting
- Due diligence
- Fair Lending laws
- TILA, RESPA, and Red Flag laws
- Appraisals
- Tax Returns
- Calculating Income, DTI, And LTV