I would like to become a mortgage underwriter–any advise out there?

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I’ve been an assistant to a mortgage broker for the past two years. I just turned 21 and I find that the real estate industry is very facinating yet very stressful at times. But I find that if I can become an underwriter that this will help me to become a mortgage loan consultant in the future or account executive. Any advise out there would be welcomed. Yes, I’m looking for a new job but I want one that will help me become a mortgage underwriter.

I have a friend that was an assistant to a mortgage broker and managed to get a job at BofA where they trained her to become an underwriter without first having been a jr. processor—what luck. HELLLLP. I don’t have many contacts. 😉

Does anyone know how to get a job as a loan underwriter even though i have no prior experience in the mortgage industry whatsoever? Is there a entry level position that i have to get first before i can transition in to the job as a loan underwriter?

  1. Reply
    Mary B
    January 25, 2011 at 10:32 pm

    From someone has done both, no, it won’t help you.

    Working under a successful mortgage broker is the best way to learn to be a mortgage consultant, not as an underwriter.

    I was an underwriter for 11 years, and yes, you know the programs, but you have to LEARN the sales ability. Once you get someone interested, you have a ton of people in the office to help you get a deal together, but no one can help you get that customer into the front door for an appointment.

    Underwriters have to stay on top of investor guidelines, changes in loan programs, communicate with loan officers, answer questions for loan processors, communicate with Regional Managers in Sales to how to help Loan Officers offer certain products.

    The most damaging Loan Officers that I have ever worked with, are former underwriters, unless they had many years of experience (as in 5 ore more).

    You have to underwrite, file after file after file to get really good at guidelines, and we STILL (because of the sheer number of programs and small differences between them), have to look up guidelines on the computer to make sure we aren’t making mistakes that will cause an investor-buyback…you get fired after so many of those.

    Loan officers are not trained to read guidelines like underwriters are…b/c your sales managers want you to be focused on bringing in deals. When they try to do this, they end up making promises to the customer that they can’t keep.

    I could write a book.

    Many underwriters end up in sales…but I’ve rarely seen someone go the other way unless they just couldn’t make it in sales.

    You are in the best training position you could be in.

  2. Reply
    January 25, 2011 at 11:07 pm

    Mary B is right, stay where you are. The knowledge you gain there is priceless. Get to know the lingo and routines of underwriters policies, and be hands on. Try talking to the bank reps, and attorneys on both sides. If you can do this successfully, you will become a multi-millionaire easily. Become an investor on the side once you get every aspect of a loan down pact and develop a hoovers handbook containing all your resources, when you met, who they have connects to, their resources (cousin works at salomon bros, brother plays for NHL) anything that might not be relavent at the time. Update it everytime you have a convo and something important is said. Get your Investment Management License Series 6 and 63 and 62. That will allow you to do CMO’s (Collaterallized Mortgage Obligations) Mortgages are bought and sold all the time. CHanges in who you write the check to change from time to time for your mortgage. Well, individuals can do the same. Lets say you have a few relatives that own homes. Most of them are paid for or have alot of equity in them. You can do a cross collateralization loan and get say $ 1mil. ( will be $ 7000mo). You can then buy $ 5mil in mortgages ($ 36Kmo income) So lets do the math. 36-7=29. So $ 29K a month for the duration of the loans contained within the 5mil. Mortgages are 30yrs. So lets just do half that. So for the next 15yrs you will be making $ 29K a month split by 3 relatives, 4 relatives. Even at 4 relatives thats $ 7,250mo each for the next 15yrs. Or if you can get someone to loan you the money you can pay them back with so much interest. So basically using this example and saying that the mortgages you bought are 5 people with $ 1mil homes. All 5 of them are now paying YOU for their mortgage. Because you own their mortgages. Even at $ 500K you can get $ 2.5mil and thats $ 18000mo income and $ 3500 for the $ 500K if you had to get a loan. So you net $ 14,500mo. Using a Mortgage Brokers knowledge and access to real estate notes and investors. I think you can undertstand where Im coming from. Remember what I said and by the age of 22, 23,24, or 25 you should be worth millions. Google is your friend, do research on it and ask your boss about them. Learn how they work, get info on classes for Series 6, Series 63 and 62. Also become a notary too that always helps. When the dust clears you will have a mountain of information and a nice future for a wife and kids.

  3. Reply
    Mary B
    January 25, 2011 at 11:14 pm

    You can’t. You have to learn how the process works before you can actually start appoving loans.

    I worked as a loan processor, then as a senior processor for a total of 4 years before I started underwriting.

    Underwriting is actually considered a promotion, and not everyone that is good at loan processing, or that wants to be an underwriter, is given the opportunity by management to gain this authority.

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