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Underwriter Job Description

Underwriter Job Description

The job of an underwriter is diversified into various responsibilities and profiles. This write-up will give you a clearer picture.
CareerStint Staff
Underwriters are those professionals who determine the financial status and income sources of potential clients, so that they are able to ensure that the loans taken by these clients are returned as per the firm's rules and policies. They are also needed to analyze whether the clients can pay back the credit in the stipulated time period.

Employed in a variety of setups, an underwriter's job description mainly depends on the field of work he or she is employed in. In fact, there are various types of underwriters, and their responsibilities differ accordingly.

Here, we'll have a look at the types, along with their roles, required education, and prospective remuneration.

Types of Underwriters

Mortgage Underwriter
The job of a mortgage underwriter includes activities that are related to acceptance or rejection of mortgage applications. These professionals evaluate and verify applications related to mortgages. They ensure that the client seeking a loan has the financial abilities to repay it. Once these mortgage underwriters have analyzed the situation of a client's financial status, they draft a document stating the requirement of the loan and other related information. Financial institutions and mortgage companies in the US employ a host of mortgage underwriters.

Bank Underwriter
Banks are financial institutions that are a hub for many activities. Banks offer different types of loans to its customers, and it is the job of a bank underwriter to determine whether or not to grant a loan to a customer. They analyze reports and documents of the customers through computerized systems, to determine their creditworthiness. The duties of a bank underwriter includes using various methods to check the creditworthiness of a customer, like determining annual income, credit score, and history and employment record.

Insurance Underwriter
Insurance underwriters play a key role in the establishment of premiums and other charges for policyholders. One of the main responsibilities of these professionals is that they help in the formulation of policies and plans. They specialize in fields like property and casualty underwriting, commercial underwriting, and life insurance underwriting.

Educational Qualifications
Generally, a bachelor's degree in finance, business, or an associate degree in a related field is important for getting specific types of job in every profile. For example, a mortgage underwriter can have an associate's degree in mortgage of financial services.

Some premier institutions like Federal Housing Administration (FHA) or Veteran's Administration (VA) and The Mortgage Banking Association (MBA) provide certification programs in subjects related to mortgage payment. Similarly, for banking underwriters, a bachelor's degree in banking, finance, or business would be relevant. Employer's prefer candidates with related work experience.

For insurance underwriters, a bachelor's degree in business, insurance, or economic-related subjects, with good skills in maths and statistics would be is essential.

Average Salary
The salary range for insurance underwriters is between $20,000 to $60,000 per year. The earning potential is determined by various factors, like title, employment, education, and work experience. The average salary is near about $50,000 annually.

Job security is dependent on the health of the economy. For example, a mortgage underwriter's employment depends on the strength of the banking systems and the real estate market. According to the Bureau of Labor Statistics, the overall job growth of underwriters by the year 2016 is estimated to be 16%. However, salary ranges have oscillated between $50,000 to $60,000 annually, and very successful underwriters can earn near about $100,000.

The career development path for an underwriter is totally dependent on the market and economy. In times when the economy isn't doing too well, when the market is low, and real estate businesses go through rough patches, underwriters, especially those in the mortgage field, face strict salary negotiation situations.