The Certificate in Mortgage Underwriting exam is designed to evaluate candidates' knowledge and proficiency in the principles, practices, and regulations governing mortgage underwriting. The exam assesses candidates' understanding of borrower qualification criteria, loan documentation requirements, risk assessment, regulatory compliance, and industry best practices in mortgage underwriting.
Skills Required
Understanding of Mortgage Underwriting Principles: Candidates should have a solid understanding of the principles and concepts of mortgage underwriting, including borrower eligibility criteria, loan-to-value ratios, debt-to-income ratios, and credit risk assessment.
Knowledge of Loan Products: Proficiency in various types of mortgage loan products, including conventional loans, government-backed loans (e.g., FHA, VA), jumbo loans, and non-conforming loans.
Risk Assessment: Ability to evaluate borrower creditworthiness, assess property valuation and collateral, and determine loan risk factors based on underwriting guidelines and industry standards.
Loan Documentation Requirements: Understanding of documentation requirements for mortgage loan applications, including income verification, asset verification, employment history, and property appraisal reports.
Regulatory Compliance: Knowledge of regulatory requirements and industry standards governing mortgage underwriting, including compliance with consumer protection laws, disclosure requirements, fair lending practices, and anti-money laundering regulations.
Who should take the Exam?
The Certificate in Mortgage Underwriting exam is suitable for professionals working in the mortgage lending industry, including mortgage underwriters, loan officers, mortgage processors, risk managers, compliance officers, and regulatory affairs professionals. It is also relevant for individuals involved in mortgage lending sales, marketing, and customer service.
Detailed Course Outline
The Mortgage Underwriting Exam covers the following topics -
Module 1 - Introduction to Mortgage Underwriting
Overview of mortgage underwriting process
Role and importance of underwriting in mortgage lending
Key stakeholders in mortgage underwriting transactions
Module 2 - Borrower Qualification Criteria
Credit score requirements
Debt-to-income (DTI) ratio calculations
Loan-to-value (LTV) ratio guidelines
Employment history and stability requirements
Module 3 - Loan Products and Programs
Conventional mortgage loans
Government-backed loans (FHA, VA, USDA)
Jumbo loans and non-conforming loans
Mortgage insurance and risk mitigation options
Module 4 - Risk Assessment and Evaluation
Credit risk assessment
Property valuation and collateral assessment
Appraisal review and property inspection
Risk factors analysis and mitigation strategies
Module 5 - Loan Documentation and Verification
Income verification requirements
Asset verification and reserves
Employment verification and stability
Property appraisal and inspection reports
Module 6 - Regulatory Compliance and Best Practices
Regulatory environment for mortgage underwriting
Compliance with consumer protection laws (e.g., TILA, RESPA)
Fair lending practices and anti-discrimination laws
AML (Anti-Money Laundering) regulations and compliance requirements