A mortgage underwriter is a skilled professional who is responsible for looking at a mortgage application and assessing the risk from the viewpoint of the financial institution. Those that have these FHA underwriter jobs are the people responsible for setting the maximum mortgage amount that will be granted the applicant. A mortgage is a loan, albeit long term and it is used to finance the purchase of a home.
Underwriting was first developed to mitigate the loss of a ship or its cargo for a fee; it was first introduced by Lloyds of London. This type of insurance has now spread to covering those companies and institutions that offer mortgages against financial loss. FHA underwriting jobs are only available in the US but mortgage underwriting is also found in Europe, Canada and parts of Asia.
There are a various tasks that a mortgage underwriter does on a daily basis, they use the mortgage application and supporting documents to evaluate how much money should be granted the applicant and create risk analysis reports on the applicant. The underwriter is employed by the lending institution directly.
When an individual wishes to apply for a mortgage, he or she provides the underwriter with certain detailed information such as the household income, the amount of down payment that can be made and the overall purchase price of the home. Along with certain employment information, the underwriter performs a series of calculations, the results of which will indicate if the applicant falls with an acceptable risk range. If the risk is acceptable, the applicant is provided with an offer of a mortgage.
The amount of mortgage granted may not be the same as that applied for, the amount is all based on the application and the empirical data used by the computer when assessing the application. People who have FHA underwriting jobs can adjust this offer based on the current economic client and the forecast of the future property market. The risk criteria are constantly being revised so as to provide maximum opportunity for profit for the lender and maximum risk mitigation.
The risk analysis reports that are generated are used within the financial institution to determine its potential financial loss when weighed against the total investment portfolio; these reports are used to constantly adjust the criteria used in approving or denying an application for a mortgage
There are many FHA underwriting jobs available for those mortgage professionals with experience, visit QUEST Mortgage Staffing for a full review of the positions that are available nationwide.