How to hire for a Loan Underwriter?


Underwriters are financial specialists who work in the banking and insurance industries, and stock markets. They evaluate, research and undertake a client’s risk for a fee such as a commission, premium or interest. 

Standard Job Description: 

Loan underwriters, or loan officers, evaluate applications for loans and make decisions regarding whether to approve an applicant for financing. A loan underwriter will meet with loan applicants to discuss personal and financial information material to the decision-making process. Underwriters assist applicants by explaining the various types of loans and their repayment terms. Underwriters then evaluate and analyze the financial portfolio of a loan applicant to make a final decision whether to lend money. Loan underwriters can work as mortgage, commercial or consumer underwriters. 

Underwriters for mortgage loans make sure that any applicants meet all the necessary requirements, and then deny or approve any loan. The
underwriter will also review the appraisal of a property to make sure that it is up-to-date and accurately reflects the loan amount. 

Loan underwriters look at three main factors, often called the three C’s: credit, capacity and collateral. 

1. Credit. Your credit history is an important influence on a lender’s decision because it shows how you’ve handled credit in the past. In addition to your credit score, an underwriter will look at your credit report for any negative information. For example, if you’ve declared bankruptcy, experienced a foreclosure, or been delinquent on a mortgage or any other type of loan or a credit card, it could be a sign that you’re a risky borrower. 

2. Capacity. A simple way to determine your financial capacity is to calculate your debt-to-income ratio – that’s the sum of your monthly debt payments divided by your gross monthly income. Underwriters will also consider other factors, such as how many people are on the loan, how much cash you’ll have in reserve after you’ve made the down payment and paid closing costs, and whether your income is based on a salary or self-employment. 

3. Collateral. Some loan programs may require that the property meets certain safety and other standards and that the loan amount doesn’t exceed the program maximum. Also, lenders want to ensure that the appraised value of the home is enough for the lender to recoup its costs in
case you default on your payments. 


Key Job Responsibilities:

1. Collect appropriate and accurate information required to assess potential clients and decide on the acceptable risk for a policy. 

2. Review policy applications based on the previous loss records, age, credit ratings and driving records. 

3. Prepare reports that detail risk assessment findings that contribute to the final decision. 

4. Compare various policies having similar risk undertaking and conduct actuarial studies to decide on the company’s loss records. 

5. Evaluate policies with regards to the company’s underwriting standards. 

6. Decide to accept, modify or reject an insurance application after scrutiny of all the required documents and studies regarding the risk involved. 

7. Analyze statistical data using specialized computer programs. 

8. Write quotes, determine premiums and coverage, and negotiate terms with brokers and clients. 

9. Carefully select the wording of policies and prepare the terms and conditions. 

10. Handle queries from credit control departments, brokers and clients. 

Ideal Candidate:

1. Analytical thinker with research proficiencies. 

2. Ability to use reasonable and sound judgment. 

3. Strong problem-solving and decision-making skills. 

4. Thorough knowledge of databases and tracking systems. 

5. Solid organizational skills and detail oriented. 

6. Ability to work under pressure and meet strict deadlines. 

7. Strong interpersonal and negotiation skills. 

8. Brilliant IT, math and statistical skills. 

9. Deep knowledge of underwriting regulations. 

10. Ability to build positive relationships and partnerships with clients, brokers and key role-players. 

Desired Education: 

Any Graduate or Post-graduate Degree in Finance or Business Administration 

Certifications Associated: 

1. JAIIB exam conducted by IIBF. 

2. Certification in Credit Rating by BSE. 

3. Certified Credit Professional by IIBF. 

Key Skills: 

ICWA, Fund, Banking & Finance, CAIIB, Actuary, Credit, Credit Appraisal, Underwriting, Financial underwriting, Underwriting of Mortgage Loan & Business Loan. 

Common Positions: 

1. Credit Underwriter 

2. Mortgage Underwriter 

3. Underwriter 

4. Origination Underwriter 

5. Actuarial

6. Claims Adjuster/Analyst/Examiner/Manager/Representative/Specialist/Clerk 


Screening Questions/Assessment Parameters:

1. What type of loans were approved  

2. Experience of handling Personal Loan and Home loan cases 

3. Types of customers assessed Example-international clients, salaried employees, farmers, business owners etc. 

4. Did the person had final sign off authority and up to what amount. 

5. Prior experience in credit risk /underwriting. 

6. Product for which credit risk assessment was done. 

Basic Terminologies:

1. All Perils. An optional coverage designed to provide protection for your vehicle for all types of losses except those specifically excluded in your policy.  

2. Embezzlement. The fraudulent use of money or property that has been entrusted to one’s care. 

3. Joint Tenancy. Ownership of property shared equally by two or more parties under which the survivor assumes complete ownership. This
is different from a tenancy in common, where the heirs of a deceased party to the tenancy inherit his or her share. 

4. Lessee. The person to whom a lease is granted, commonly called the tenant. 

5. Lessor. The person granting a lease, also known as the landlord. 

6. Libel. A written statement about someone that is personally injurious to that individual. 

7. Mortgagee. The creditor to whom a mortgage is given, and who lends money on the security of the value of the property mortgaged. 

8. Named Perils. Named perils are the specific dangers a policy insures you against – such as fire, windstorm, and hail in a homeowner’s policy. These perils are “named” or listed in the policy. 

9. Arbitrage. Act of buying an asset/security in one market and selling simultaneously in another. This restores equilibrium in markets that are temporarily out of equilibrium. 

10. Delinquent. A situation where one fails to make payment, which can lead to foreclosure. 

Industry Jargons: 

1. Underwriting: This is a process by which a life insurance company assesses and classifies the risks.  

2. Projected Investment Rate of Returns: The projected invested rate of returns are investment returns that the participating fund is expected to earn after accounting for expenses 

3. Freelook Provision. In simpler terms, it is an option to get the refund if you don’t like the contract terms. 

4. Annuity. A series of receipts or payments of a fixed amount for a specified number of years. Alternatively, a pattern of cash flows that are equal in each year, that is, equal annual cash flow. 

5. Guaranteed Loan. In this case, a third party guarantees the payment of a loan if the borrower fails to perform. 

6. Hedging Approach. Financing the short-term requirements of funds by short-term and long-term requirements by long-term funds. 

7. Internal Rate of Return. The rate of return that equates the present value of future cash flows to the initial investment on the project. 

8. Option. It provides its holder with an opportunity to purchase or sell a specified number of shares at a stated price or on before a specified period. 

9. Restructure. Making changes in the original agreement with the consent of the parties involved. 

10. Roll Over. A situation where parties to the contract agree to carry over the loan for another stated period at the time of maturity. 

Benchmark Profile: 

Benchmark Profile on LinkedIn (1) 

Benchmark Profile on LinkedIn (2) 

Benchmark Profile on LinkedIn (3) 

Benchmark Profile on RMS(1) 

Benchmark Profile on RMS(2) 

Benchmark Profile on RMS(3) 



139 replies
  1. LeoraQKondel
    LeoraQKondel says:

    My brother suggested I might like this web site. He was totally right.
    This post actually made my day. You cann’t imagine simply
    how much time I had spent for this information! Thanks!

    Here is my page LeoraQKondel

  2. 라이브바카라
    라이브바카라 says:

    I’m extremely impressed with your writing skills and also with the layout on your blog. Is this a paid theme or did you customize it yourself? Either way keep up the excellent quality writing, it is rare to see a nice blog like this one nowadays..

  3. ZoraPBickart
    ZoraPBickart says:

    My partner and I stumbled over here from a different
    webpage and thought I might as well check things
    out. I really like the things i see so i am just following you.
    Look forward to going over your web page repeatedly.

    Feel free to surf to my web blog; ZoraPBickart

  4. Frances Lucie
    Frances Lucie says:

    I just want to mention I am new to blogs and honestly enjoyed this website. Almost certainly I’m planning to bookmark your blog . You surely come with good articles. With thanks for revealing your blog site.

  5. Azalee Brink
    Azalee Brink says:

    I simply want to say I am very new to blogging and site-building and seriously liked this page. Most likely I’m planning to bookmark your blog post . You surely come with remarkable stories. Appreciate it for revealing your blog site.

  6. MinnieAGamma
    MinnieAGamma says:

    I’m not that a good deal of internet reader to tell the truth however your sites really nice, keep it up!
    I’ll just bookmark your site to come back down the road.
    All of the best

    Also visit my homepage MinnieAGamma

  7. AlMMorford
    AlMMorford says:

    Hi there, i read your blog every so often and i also own a similar one and i also was only wondering if
    you get a lot of spam feedback? If how can you reduce it, any plugin or what you can recommend?
    I have so much lately it’s driving me crazy so any support is very much appreciated.

    Take a look at my homepage :: AlMMorford

  8. bog
    bog says:

    Science Current Events In The Last 3 Months
    Commission On Higher Education Of The Middle States Association Of Colleges And Schools

    My web site; bog

  9. Lamonica Lallier
    Lamonica Lallier says:

    Hi, I think that I saw you visited my weblog thus Icame to return the favor?.I’m trying to find things to enhance my site!I suppose its ok to use some of your ideas!!

  10. ChadCEhrhard
    ChadCEhrhard says:

    I love your website.. very good colors & theme.

    Have you design this amazing site yourself or did you hire someone
    to get it done for you personally? Plz answer back as I’m trying to create my own, personal blog and would like to figure out where u got this from.

    thanks a lot

    Feel free to surf to my site – ChadCEhrhard

  11. AhmedESkyers
    AhmedESkyers says:

    Thank you a bunch for sharing this with all people you really realize what you are speaking approximately!
    Bookmarked. Kindly additionally visit my website =).
    We can have a hyperlink change contract between us

    my web blog; AhmedESkyers

  12. EddaXBoshell
    EddaXBoshell says:

    Hello, i think that i noticed you visited my website thus i got here
    to return the prefer?.I’m wanting to to find issues to improve my website!I suppose its adequate to utilize some of your ideas!!

    Visit my homepage – EddaXBoshell

  13. Google
    Google says:

    You’re so interesting! I don’t suppose I have read a single thing like this before. So wonderful to find another person with genuine thoughts on this topic. Really.. thanks for starting this up. This web site is something that is needed on the web, someone with a bit of originality!

  14. cheap phone sex
    cheap phone sex says:

    When someone writes an piece of writing he/she maintains the image of a user in his/her mind that how a user can understand it. So that’s why this piece of writing is perfect. Thanks!

  15. security screener job
    security screener job says:

    Greetings from Florida! I’m bored at work so I decided to browse your blog on my iphone during lunch break. I enjoy the knowledge you present here and can’t wait to take a look when I get home. I’m amazed at how fast your blog loaded on my phone .. I’m not even using WIFI, just 3G .. Anyways, awesome blog!

  16. security screens
    security screens says:

    Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You obviously know what youre talking about, why throw away your intelligence on just posting videos to your site when you could be giving us something informative to read?

  17. security screener job
    security screener job says:

    Hi, I think your website might be having browser compatibility issues. When I look at your blog site in Ie, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, amazing blog!

  18. DrewWChhom
    DrewWChhom says:

    Excellent post. I was checking constantly this blog and I’m inspired!

    Extremely helpful info specifically the last phase 🙂 I look after such info much.
    I found myself seeking this certain info for the very long time.
    Thanks a lot and best of luck.

    Look into my web-site :: DrewWChhom

  19. 출장마사지
    출장마사지 says:

    Wow that was odd. I just wrote an really long comment but after I
    clicked submit my comment didn’t show up. Grrrr… well I’m
    not writing all that over again. Regardless, just wanted to say excellent blog!

  20. website design in mangalore
    website design in mangalore says:

    When I originally commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get three emails with the same comment. Is there any way you can remove me from that service? Bless you!

  21. social media marketing in mangalore
    social media marketing in mangalore says:

    Admiring the time and energy you put into your site and detailed information you present. It’s nice to come across a blog every once in a while that isn’t the same old rehashed information. Great read! I’ve saved your site and I’m including your RSS feeds to my Google account.

  22. บาคาร่าออนไลน์
    บาคาร่าออนไลน์ says:

    3. ยื่นชิพของคุณให้เจ้ามือ ในยุโรป หรือฝรั่งเศส คนที่คุมโต๊ะรูเล็ตจะเรียกว่า “เจ้ามือ” สำหรับเกมรูเล็ต คุณจะไม่สามารถเล่นได้ด้วยชิพคาสิโนปกติ เนื่องจากมันจะเป็นเรื่องที่ยากในการแยกแยะ

  23. Slot Joker
    Slot Joker says:

    I have acquired come new items from Vegus website about computer systems. Another thing I’ve always believed is that computer systems have become comething that each house must have for several readdins. They supply you with cinvenient ways in which to organize homes, pay bills, go shopping, study, tune in to music add well add watch tv shows. An innovative strategy to complete all of these taddks is by using a laptop computer. These computers are mobile ines, small, potent and portable.

  24. ดูบอลสด
    ดูบอลสด says:

    Avoid writing blogs about subjects Happy New Casino AllForBet have no interest in or know nothing about. It will reflect in Happy New Casino Casino writing and Happy New Casino AllForBet could possibly come across as uninformed in Happy New Casino AllForBet are unsure of what Happy New Casino AllForBet are writing about. This can turn readers off and they will avoid revisiting Happy New Casino Casino site.

  25. เว็บแทงบอล
    เว็บแทงบอล says:

    Among its many terrific uses the Casino’s tremendous ability to help you learn foreign languages. By downloading applications that offer vocabulary instruction as well as translation assistance in a large number of tongues, you can set yourself on the path to becoming a true citizen of the world.

  26. สล๊อต
    สล๊อต says:

    3. ยื่นชิพของคุณให้เจ้ามือ ในยุโรป หรือฝรั่งเศส คนที่คุมโต๊ะรูเล็ตจะเรียกว่า “เจ้ามือ” สำหรับเกมรูเล็ต คุณจะไม่สามารถเล่นได้ด้วยชิพคาสิโนปกติ เนื่องจากมันจะเป็นเรื่องที่ยากในการแยกแยะ

  27. front tooth crown
    front tooth crown says:

    Does your website have a contact page? I’m having a tough time locating it but, I’d like to shoot you an email. I’ve got some ideas for your blog you might be interested in hearing. Either way, great site and I look forward to seeing it grow over time.

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.