Mortgage Loan Underwriter

Summary of Duties and Qualifications

Job Summary:
A Mortgage Loan Underwriter (MLU) is a finance professional who accepts a loan file containing a completely documented residential mortgage loan application prepared by the loan processing dept.  The MLU conducts a careful review of all the information contained in the file to establish the answer to four essential questions: 1. Based upon an analysis of the applicant’s monthly income and expenses; does the applicant have the ability to repay the loan?  2. Based upon a review of the applicant’s credit report; is the applicant willing to repay the loan?  3. Based upon a review of the applicant’s existing assets and debts; does the applicant have sufficient savings, from acceptable sources, to cover the down payment and closing costs?   4.  Based upon a review of the property appraisal; is there sufficient collateral to repay the loan in the event the applicant is unable to make the required monthly payments or otherwise fails to honor the loan terms?   MLUs have specific training and experience that enables them to prudently answer the above four questions and thereby effectively evaluate the financial risk posed by the loan applicant to the lender and thereby render a decision to approve or deny the mortgage loan application.  Once the MLU has determined that the loan application is “clear to close” the loan file is returned to the Mortgage Loan Processor (MLP).  The MLP forwards the approved loan file to the Mortgage Loan Closer (MLC), who schedules the closing.  MLUs work in a company office reporting to a Loan Underwriting Supervisor or a Branch Manager.  They interact daily with MLOs and company staff involved in processing and closing.

Basic Job Duties:
Daily activities include, but are limited to, calculating and analyzing debt-to-income and loan-to-value ratios; evaluating credit reports; and analyzing appraisals in accordance with acceptable appraisal practices to ensure compliance with company policies, investor and PMI company requirements and secondary market underwriting guidelines; using professional judgment, seeking supervisor input when appropriate, to determine the relevance of factors that may mitigate credit risk presented by challenging loan files; suggesting alternative solutions to make a loan work or recommending different loan programs for the Mortgage Loan Originator (MLO) to present to a loan applicant who fails to qualify for the original loan program; adequately and effectively explaining in written and/or verbal form the reason(s) for the credit decision (suspension, approval or denial) in a manner that will maintain a positive relationship with the MLO, the loan applicant, the Realtor and any other interested parties; acting as a technical resource for MLPs and MLOs seeking guideline interpretations and loan scenario suggestions.  MLUs typically work a 40-hour week and are paid an hourly wage.  However, they must be willing and able to work overtime during periods of peak loan volume.

Training and Other Qualifications:
There are no mandatory academic prerequisites for the position of MLU.  While a college degree is preferred, MLUs should have at least a high school diploma.  Courses of study in mathematics, economics, finance and accounting and are not required but may provide a good academic foundation for this profession. 

Required traits/skills include strong attention to detail; being very organized and analytical; and having an aptitude for figures.  This position requires several years of prior mortgage lending experience with a strong preference for 2+ years of mortgage loan underwriting experience or 5+ years of mortgage loan processing experience.  This experience must include competent knowledge of tax return analysis for self employed loan applicants.  MLUs must possess a thorough working knowledge of Freddie Mac, Fannie Mae and FHA/VA underwriting guidelines as well as strong familiarity with the requirements of PMI companies and company investors.  MLUs are expected to command a solid working knowledge of federal and state mandated consumer disclosure requirements (such as the Good-Faith-Estimate; the Mortgage Servicing Disclosure Statement; and Truth-In-Lending Disclosure Statement) and remain alert to consumer disclosure issues that arise during loan underwriting.  The MLU must be capable of interpreting and applying required policies, procedures and guidelines with minimal supervision.

The MLU will be expected to be qualified for both HUD-FHA Direct Endorsement certification and VA Automatic Underwriting Authority.  VA Lender Appraisal Processing Program authority is preferred.  Proficiency with automated underwriting technology such as Fannie Mae’s Desktop Underwriter and Freddie Mac’s Loan Prospector; along with Encompass loan processing software is preferred.  A newly hired MLU receives on-the-job training concerning company loan underwriting policies, procedures and practices from more senior MLUs.  Additional guidance is available from the Loan Underwriting Supervisor. 

The most successful MLUs possess a positive and cooperative attitude; have good interpersonal and communication skills; are comfortable working in a fast-paced deadline oriented environment; enjoy multi-tasking; have the ability to change priorities quickly as time-sensitive needs arise; and are able to adapt to a fluctuating workflow, particularly during periods of high loan volume.  They remain calm and courteous when dealing with impending deadlines, anxious MLOs and others with whom we do business. 

Because MLUs routinely handle the sensitive non-public personal identifying and financial information of prospective customers and loan applicants, they are bound by the provisions of the Gramm-Leach-Bliley Act and the First Niagara Mortgage Privacy Policy, which strictly limits their use of, access to and disclosure of such information.  This position requires a commitment to maintaining a high level of confidentiality.

In assessing an employment application, First Niagara Mortgage will evaluate an applicant’s personal history looking for evidence of financial responsibility and good character.  Employment applicants with certain felony criminal convictions and/or certain convictions involving crimes of dishonesty, financial services or a financial services related business may be prohibited from employment in the field of mortgage banking.  Specific prohibitions vary from state-to-state.

First Niagara Mortgage is a HUD approved mortgagee.  Pursuant to HUD exclusive employment requirements, while working at First Niagara Mortgage, an employee must not have outside employment in mortgage lending, real estate or any other related field.  For example, a licensed real estate agent may keep his/her real estate license while working for First Niagara Mortgage  However, while employed by First Niagara Mortgage, the agent may not conduct any real estate related employment or business activity and may not receive any income from such activity.