Are you considering a career in mortgage underwriting? What an exciting choice! Underwriters ensure all mortgages adhere to laws, making them indispensable in the loan process. If you’re thinking about becoming one, here’s everything you should know – including job duties, skillsets required for success, as well as tips on finding remote underwriter jobs. Let’s get started!
An underwriter is accountable for reviewing and approving loan applications. They make sure the applicant meets all necessary criteria, making sure the loan presents a sound risk to the lender. If you’re thinking about pursuing a career as a mortgage underwriter, here’s what to know:
The Job Description
Mortgage underwriters review loan applications to verify if an applicant meets all necessary criteria and assess any risk involved in lending money to them. Typically, mortgage underwriters work for banks or other financial institutions.
Underwriters face a difficult role; they must approve or deny loan applications based on affordability. If an applicant receives approval for a loan that they cannot afford, the bank could suffer financial loss; conversely, denying them could mean lost business opportunities for the institution. Therefore, underwriters must exercise caution and pay close attention to detail when reviewing loan applications.
The Requirements
Mortgage underwriters must possess at least a bachelor’s degree; however, many employers prefer candidates with master’s or higher degrees. Furthermore, strong analytical and communication abilities are necessary as mortgage underwriting is an intricate process requiring individuals to comprehend financial data and interpret it appropriately. Individuals interested in becoming mortgage underwriters should consider pursuing a degree in finance or accounting.
The Salary
According to the Bureau of Labor Statistics, mortgage underwriters earned an annual median salary in 2017 of $67,280. The top 10% earnt more than $109,920 while the bottom 10% made less than $37,040. Experienced and knowledgeable mortgage underwriters tend to earn salaries at the higher end of this range.
A career as an underwriter can be both rewarding and challenging. Mortgage underwriters are responsible for either approvating or denying loan applications, so it’s important to exercise caution and pay close attention to detail when reviewing loan applications. To be successful in this role, mortgage underwriters need at least a bachelor’s degree along with strong analytical and communication skillsets. According to 2017 data from the Bureau of Labor Statistics, the median annual salary for this profession was $67,280. Those interested in pursuing this profession should consider studying finance or accounting at university level.
How to Become a Remote Mortgage Underwriter
Mortgage underwriters are responsible for approving or disapproving loan applications from prospective homebuyers. Their role is vital, as they must guarantee that applicants possess the financial capacity to repay their loan.
To become a remote mortgage underwriter, there are several steps you must take. First, obtain your degree in business or finance from an accredited university. Afterwards, acquire several years of experience working within the mortgage industry before receiving your license from NMLS (National Mortgage Licensing System).
Once you meet all the necessary qualifications, you can work from home as a remote mortgage underwriter. Your role as an underwriter involves reviewing loan applications and determining whether an applicant meets the approval criteria.
Steps to Becoming a Remote Mortgage Underwriter
Becoming a remote underwriter involves three main steps. These are:
- Earn a degree in business or finance from an accredited university.
- Gain at least several years of experience working in the mortgage industry
- Gain your license through the National Mortgage Licensing System (NMLS).
Let’s take a closer look at each of these steps.
Obtaining a Degree in Business or Finance
To become a remote mortgage underwriter, you must obtain a degree in business or finance from an accredited university. A bachelor’s degree is usually necessary; however, some employers may prefer candidates with master’s degrees. Although there are numerous universities offering programs related to business and finance, make sure your degree is recognized by potential employers so that potential employers can easily recognize it.
Obtaining Experience in the Mortgage Industry
The second step to becoming a remote underwriter is gaining experience working in the mortgage industry. Employers usually require at least 3-5 years of expertise, though some may require more. There are various ways to gain this expertise, such as working as a loan officer, processor or closer. Any experience working with mortgages will give you an advantage when applying for jobs as a remote mortgage underwriter.
Obtaining Your License from the NMLS
The third and final step to becoming a remote mortgage underwriter is earning your license from the National Mortgage Liensing System (NMLS). To do this, you must pass an exam administered by NMLS that covers topics like federal law and regulations, ethics, and lending standards. Once passed, you can apply for jobs as a remote mortgage underwriter.
Now that you understand how to become an underwriter, why wait? Take action now and start working from home for all its advantages!
