What Are the Requirements to Become a Mortgage Underwriter?


Quick Answer

Though specific requirements may vary between states and companies, a mortgage underwriter typically only requires a high school diploma and experience in the mortgage or real estate industry. Other requirements may include special certification from a college or the Federal Housing Authority and knowledge of financial risk and different housing plans and programs.

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Full Answer

The primary responsibility of a mortgage underwriter is to assess the potential risk for a financial institution in extending a home loan to a client through an analysis of the applicant's current financial history and the general housing market in the area. Most states only stipulate a high school diploma as the education requirement for residential mortgage underwriters, though some states may call for special certification or attendance in programs to qualify. Most companies also place additional requirements on applicants to ensure the knowledge and experience of employees, which typically includes a minimum amount of practical experience as an insurance underwriter or relevant real estate professional.

Underwriters must know about the rules and requirements of federal housing laws and the function of special programs, such as those that help veterans or first-time homeowners. These institutions may decrease the risk of applicants due to federal financial assistance. Some jobs may also call for a certification from a local or federal mortgage or lending institution, which shows an understanding of risk assessment abilities and knowledge of housing laws in that area.

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