Home / Career Guides / Mortgage Underwriter

Mortgage Underwriter Career Guide

What is a mortgage underwriter?

A mortgage underwriter is a professional who assesses the risk of lending money to homebuyers. The underwriter’s role is central to the mortgage industry, bridging the gap between the loan originator and the potential homeowner. Their thorough analysis determines whether a borrower’s loan application meets the lender’s criteria and the regulatory standards.

They review an applicant’s financial information—such as income, credit history, and debt ratios—to decide if the borrower will likely repay the loan and if the property is worth the mortgage amount. This role is not just about number crunching; it’s about ensuring that loans are granted responsibly to protect both the financial institution and the consumer from default-related losses. As guardians of the lending process, underwriters contribute to the stability of the housing market and, by extension, the broader financial system.

Duties and responsibilities

Mortgage underwriters are responsible for comprehensively reviewing a potential borrower’s creditworthiness. Their primary duty is to analyze credit reports, assess financial statements, and scrutinize employment and income documentation to confirm an applicant’s ability to repay a loan. They also appraise the property value through the assessment of appraisal reports to ensure it provides sufficient collateral for the loan.

The underwriter must carefully document their decision-making process, verifying that all loan approvals or denials are based on sound financial principles and comply with internal policies as well as external regulations such as those set by the Federal Housing Administration (FHA), Veterans Affairs (VA), or the Federal National Mortgage Association (Fannie Mae). Part of their responsibilities includes staying informed of the changing regulations and guidelines that affect loan approvals.

Work environment

The work environment for a mortgage underwriter is typically a corporate office within a financial institution such as a bank, credit union, mortgage company, or financial services firm. Their role is primarily desk-based, with much of their time spent on computers analyzing financial data, reviewing documentation, and utilizing loan underwriting software. This position involves minimal physical activity but requires a high degree of focus and concentration. Underwriters often work closely with loan processors, loan officers, and sometimes real estate professionals, meaning collaboration and communication are integral to their day-to-day operations.

Typical work hours

Mortgage underwriters generally work during regular business hours, typically adhering to the 40-hour workweek schedule of most corporate environments. However, the workload can be influenced by the housing market’s fluctuating demands. During periods of low-interest rates or booming housing markets, the volume of loan applications can increase significantly, which may require underwriters to work longer hours, including occasional evenings or weekends, to keep up with the demand. Conversely, when the market slows down, the workload and hours can normalize. Mortgage underwriting is deadline-driven, and meeting closing dates is essential, so they must maintain flexible schedules to meet these time-sensitive requirements.

How to become a mortgage underwriter

In order to become a mortgage underwriter, you will need a combination of education, training, and experience. In this career guide section, we cover the steps you’ll need to take to achieve your goal:

Step 1: Obtain a bachelor’s degree

While it is possible to get an entry-level job as an underwriter without a degree, the majority of positions require at least a bachelor’s degree. Get a degree in finance, business, mathematics, or something similar from an accredited college or university. 

Step 2: Consider taking the Mortgage Loan Originator Test

States require that mortgage officers pass the National Mortgage Licensing System and Registry (NMLS) exam. Most bachelor’s degree programs don’t include specific information about mortgages and this process. Underwriters don’t necessarily need to be licensed, but it can be a big benefit. The U.S. Department of Housing and Urban Development and state departments all have their own unique requirements, so being licensed can cover all of them.

Each state has different requirements about how many hours of coursework you do. Usually, 20 hours is the minimum. This coursework will help you prepare for your exam and gain all the tools you need to work with clients once you land your first job. The test itself has just over 100 multiple-choice questions. It covers general mortgage knowledge, federal mortgage-related laws, loan origination activities, ethics, and more. The test has a pass rate of just over 55%. If you don’t pass the first time, don’t give up. Many people retake and pass the second time with additional study time.

Step 3: Receive additional certifications and education

Certification is an important step in this process. It shows that you’ve completed additional training. Here are the top three certifications available for mortgage underwriters:

  • Credit Analyst and Real Estate Underwriting Training – Start with a course that dives into the basics of the process, like this Udemy course for Real Estate Underwriting Training. You’ll review test cases and work through a complete real estate analysis to understand the process. 
  • Certified Residential Underwriter (CRU) – This has become the standard for excellence in mortgage loan underwriting. The CRU is administered by the Mortgage Bankers Association (MBA). There are three different levels of certification available. The basic level proves your entry-level skills and earns you the Residential Underwriter Achievement Certificate. The intermediate level earns you the Residential Underwriter Professional Certificate. Once you’ve completed those, you’re eligible for the advanced level of the CRU Specialist Designation. Everything can be completed online, including exams. 
  • Certified Mortgage Underwriter (CMU) – The CMU program is designed for entry-level residential mortgage underwriters looking to advance their careers. Sponsored by the National Association of Mortgage Underwriters (NAMU), this program demonstrates your knowledge of underwriting essentials, FHA/VA underwriting, and manual underwriting. The course provides real-world lessons to help you gain the practical skills you need. The certification must be renewed yearly by taking an exam.
  • Chartered Life Underwriter (CLU) – Offered by the American College of Financial Services, this certification is designed for underwriting professionals interested in insurance underwriting. Candidates gain a solid foundation in the fundamentals of insurance and estate planning, life insurance law, income taxation, and investments. Take the program online at your own pace. Once you’ve completed eight courses, passed the exams, and met experience requirements, you’ll get certified. Renewal is required every two years.

Step 4: Apply for jobs

Once you have the knowledge base to be a successful mortgage underwriter, you can begin applying for jobs. Utilize online resources to find job postings. Reach out to your network on LinkedIn, especially if you have any connections at banks and financial institutions. 

Step 5: Continue training and education

Laws and regulations are constantly evolving and changing. Underwriters need to stay on top of those movements. Continuing education is a great way to advance your career and make sure you are up-to-date on the most current processes and guidelines. 

Most certifications require updates and renewals at least every two years. Make sure to stay on top of those and take the updated courses. Take advantage of any chances to attend conferences and conventions. Those great networking events usually have a packed schedule of speakers and educational opportunities.

How much do mortgage underwriters make?

There are many variables that go into determining how much a mortgage underwriter makes, from company size to experience to education, just to name a few.

Highest paying states

  • Hawaii – $90,759
  • Nevada – $89,624
  • Massachusetts – $89,159
  • Connecticut – $88,660
  • Rhode Island – $86,206

Browse mortgage underwriter salary data by market

Types of mortgage underwriters

In this section of the career guide, we will explore the various types of mortgage underwriters. Each type specializes in different aspects of the mortgage underwriting process, whether focusing on residential or commercial properties, government-backed loans, or specific risk assessment methodologies.

Residential mortgage underwriter

These professionals focus on underwriting loans for individual homebuyers. They evaluate the borrower’s creditworthiness, the value of the home, and other personal financial factors. Their analysis is crucial in deciding whether a borrower receives a mortgage for a home purchase.

Commercial mortgage underwriter

Commercial mortgage underwriters specialize in loans for business properties like offices, retail spaces, or apartment complexes. They consider the viability of the business, the property’s potential income, and the larger scale of financial risk compared to residential underwriting.

FHA mortgage underwriter

Specializing in loans insured by the Federal Housing Administration, FHA mortgage underwriters have a unique set of guidelines to follow. They must understand FHA standards and regulations to assess borrower eligibility for these government-backed loans.

VA mortgage underwriter

These underwriters assess loans guaranteed by the Veterans Affairs Department, requiring knowledge of VA guidelines. They make sure that loans to veterans and active military personnel meet specific criteria for approval.

Automated underwriting system specialist

These underwriters work with specialized software designed to assess mortgage applications. They must be adept at interpreting automated recommendations and verifying the accuracy of the software’s risk assessment.

Jumbo loan underwriter

Jumbo loan underwriters assess mortgage applications for loans that exceed the conforming loan limits set by Freddie Mac and Fannie Mae. They handle higher-value mortgages, which involve additional risk and require more stringent evaluation criteria.

Reverse mortgage underwriter

They specialize in reverse mortgages for seniors, which allow homeowners to convert part of their home equity into cash. These underwriters must be knowledgeable about the unique terms and requirements of reverse mortgages.

Portfolio mortgage underwriter

These professionals assess loans that lenders intend to keep in their own portfolios rather than sell on the secondary market. They may have more flexibility in their underwriting criteria and evaluate loans on a case-by-case basis.

Top skills for mortgage underwriters

This section outlines the primary skills and traits needed for career success as a mortgage underwriter.

Analytical skills

At the heart of an underwriter’s job is the ability to analyze financial information. They must review and interpret data related to credit reports, income, asset documentation, and the property in question to make informed lending decisions. The ability to scrutinize financial documents and assess the risk of lending is crucial for predicting the likelihood of borrower default and protecting the lender’s interests.

Attention to detail

Meticulousness is critical, as these professionals must spot any discrepancies or anomalies in loan applications that could indicate fraud or financial instability. They must ensure all documentation is complete, authentic, and complies with lending laws and guidelines. This skill is vital for maintaining the integrity of the loan approval process and for the accuracy of the underwriting decision.

Decision-making abilities

Underwriters are the final gatekeepers who decide whether a mortgage application should be approved or denied. This responsibility demands strong decision-making skills, often under tight timelines. They must weigh the potential risks and benefits, considering both the applicant’s situation and the lender’s guidelines, to make sound lending decisions.

Knowledge of lending regulations

Staying informed of the latest mortgage lending regulations and guidelines is fundamental. Knowledge of federal and state laws, as well as institutional policies regarding mortgages, is necessary to ensure compliance. This understanding helps protect both the lender and the borrower from potential legal issues and financial losses.

Financial acumen

Understanding complex financial situations and real estate economics plays a significant role in mortgage underwriting. They need to be able to assess an applicant’s financial strength, understand property values, and grasp the implications of various loan terms and interest rates. A strong sense of financial insight aids in offering loan terms that benefit both the lender and the borrower.

Mortgage underwriter career path

Typically, one might start as a loan processor or junior underwriter, where the primary duties involve gathering and checking clients’ financial information and learning the basics of assessing loan applications.

Gaining experience and a solid grasp of underwriting principles can lead to a position as a mortgage underwriter. In this role, you’re expected to evaluate the risk of lending and make decisions on loan approvals. Expertise in analyzing credit reports, employment history, and income sources, as well as understanding real estate market trends, is essential.

With additional experience and perhaps further education or certifications, such as the Certified Mortgage Underwriter designation from the National Association of Mortgage Underwriters, professionals can advance to senior mortgage underwriter or underwriting manager roles. These positions come with greater responsibility, including the oversight of underwriting teams and the development of lending policies and guidelines.

Some underwriters specialize further, focusing on areas such as commercial lending or FHA loans, which require specific knowledge and certifications. These specializations can enhance one’s value in the market and create opportunities for advisory or consulting roles.

Career advancement can continue to roles like chief credit officer or risk manager, where the focus shifts to managing the entire credit portfolio of a lending institution and making strategic decisions to minimize financial risk.

Mortgage underwriters are at the core of the home lending process, and their expertise remains in high demand, particularly as the housing market continues to experience fluctuations. The recent trend toward automation and the use of artificial intelligence for risk assessment has brought about a shift in the role. While technology has streamlined the underwriting process, there’s an increased need for underwriters who can manage complex applications that automated systems cannot address.

There’s also a trend toward a more customer-centric approach, requiring these professionals to balance the efficiency of technology with the need for personal judgment and interaction. Underwriters with a strong grasp of regulatory compliance and the ability to work with new underwriting technologies are well-positioned for the future.

Employment projections

The U.S. Bureau of Labor Statistics groups mortgage underwriters with loan officers for its projections. According to their data, employment for loan officers is expected to grow 3% through 2032, about as fast as the average for all occupations. The health of the economy and interest rates are influential factors that could impact the demand for underwriters. Those well-versed in lending regulations and technology-driven underwriting platforms may be more competitive in the job market.

Mortgage underwriter career tips

Soft skills and traits

Understand the impact this role has on people’s lives and the success of a financial institution. Risk assessment is a major part of this role, which involves understanding people’s ability to repay their loans. Study credit reports and credit histories to practice and get comfortable with these documents’ ins and outs. Ask to shadow any senior underwriters to understand their role better. Read up on reviews of different loans and financial institutions. Understanding how customers feel about their loan application experience is good. Strong communication skills to help your customers understand the numbers and results of your analysis. 

Commonly required skills and qualifications

Once you have your bachelor’s degree, take certification courses and continuing education opportunities to add to your resume. Check the National Mortgage Licensing System to learn more about the requirements and licenses needed for desired positions and anything you may pursue in the future. Get passionate about financial data and numbers. The more you know about the industry, the better you will be at your job.

Develop a professional network

Stay informed on current real estate trends and changes in the market so you know what’s happening within the industry. Work with others in the same industry as you using professional networks. Here are a few to explore:

  • National Association of Mortgage Underwriters (NAMU)
  • Mortgage Bankers Association (MBA)
  • National Association of Mortgage Processors (NAMP)
  • National Creditors Connection (NCC)
  • LinkedIn Professional Groups

Where the mortgage underwriter jobs are

Top companies

  • Wells Fargo
  • JPMorgan Chase & Co
  • Chubb
  • Liberty Mutual Insurance
  • State Farm

Top states

  • Rhode Island
  • South Dakota
  • New York
  • New Mexico
  • Michigan

Top job sites

  • Indeed
  • LinkedIn
  • ZipRecruiter
  • Careerbuilder
  • Monster


What do I need to become a mortgage underwriter?

Most positions for mortgage underwriters require a bachelor’s degree in finance or business-related fields. In addition, it’s important to have the proper license required in your state of employment. Get more certifications to help advance once you’re licensed.

What is the difference between a mortgage lender and an underwriter?

A mortgage lender assumes financial risk when providing a loan, but a mortgage underwriter determines the value of the risk, which is important for the loan to be approved. The two positions work together and are essential to the mortgage industry.

How long does it take to be a mortgage underwriter?

Once you’ve completed your college degree and got certified, it doesn’t take long to become an underwriter. You may need to get a few years of financial institution experience before getting the job you’re interested in. 

What skills do I need to become a mortgage underwriter?

Mortgage underwriters need to be detail-oriented and organized to sort through all the financial data efficiently. Understanding credit reports and financial information is also important for anyone interested in this position.

Is it stressful to be a mortgage underwriter?

The hours are pretty consistent for mortgage underwriters. You may have deadlines you’re working to meet, but if you are able to stay organized, there won’t be a lot of unneeded stress in the position.

Are mortgage underwriters in demand?

While some roles for underwriters are declining, mortgage underwriters are in demand. There is room for advancement in this career path as well.

What does a mortgage underwriter do?

The main role of a mortgage underwriter is to approve or deny your loan application. They examine an applicant’s credit history, income, outstanding debts, and other financial data. With that information, they determine the risk and make the decision.

Does a mortgage underwriter need to be licensed?

A loan officer must be licensed by the state, but not necessarily mortgage underwriters. Each state has its own unique requirements, so obtaining a license from the Nationwide Mortgage Licensing System (NMLS) is a strong move.

Are there entry-level jobs for mortgage underwriters?

There are entry-level jobs for underwriters. They will help with applications and work as assistants or trainees to learn the process. On-the-job experience is important on resumes, so working in a role like this for a year or two can help advancement.

What are the most important job duties for a mortgage underwriter?

The mortgage underwriter’s main job duty is reviewing applicants’ financial information and deciding whether to approve or deny the loan applications. It involves combing through debts, assets, and credit history and assessing the risk.