– Underwriter Job Description –
Have you ever heard of Underwriter jobs, but don’t really know what it means? Are you looking for Underwriter jobs in Nigeria 2022, but don’t know how and where to get them? Would you like to work as an underwriter?
What is Underwriting?
Underwriters decide whether a borrower’s loan application is approved or not. If a potential borrower applies for a loan from a mortgage.
Also, insurance, loan broker or any other type of financial institution, it is an underwriter who evaluates the risk presented by the entire loan application.
As part of the underwriter job description, they review credit history, assets, and the size of the loan. However, the appraisal of the home for mortgage applicants.
Also, medical history for insurance, and then decide whether to approve or decline the application based on the risk presented.
How to Become an Underwriter
The most common underwriter qualifications include having at least a bachelor’s degree in finance, business, economics, or mathematics.
Advancing in this field typically requires underwriters to earn certifications through nationally recognised organisations. While they can get underwriting certificates in as little as 1-10 courses.
| Job | Average Base Salary | Years of Experience | Minimum Credential Preferred |
| Mortgage Underwriter | $78,012 | 0-2 | Bachelor’s Degree |
| Sr.Mortgage Underwriter | $95,074 | 0-2 | Bachelor’s Degree |
What Does an Underwriter Do?
The most common underwriter duties include:
1. Reviewing and verifying loan applications and supporting documentation
2. Analysing loan risk and requesting additional information as necessary
3. Defining the terms and conditions of the insurance coverage and the premium
4. Review loan documentation and vendor reports identifying signs of fraudulent activity
5. Making loan eligibility decisions and approving or rejecting applications
6. Communicating with loan officers and management to maintain a case-by-case follow-up for potential clients
7. Re-assessing risk when policies come up for renewal
8. When necessary, insurance underwriters request additional information beyond the application to ensure thorough and accurate evaluations
Types of Underwriter
Underwriters are various types and categories and major in different fields of life.
Mortgage Underwriters
Mortgage underwriters are the most frequently used sort among loan underwriters, and with good reason. Buying a house by itself is risky, even for someone with great credit and high income.
So underwriters in the mortgage industry have to be incredibly thorough to make sure the risk is not unmanageable considering how many of the mortgages given out are, at minimum, above six figures.
Credit score and history will be factored in again, but there are so many other factors that must be looked at. Is there verifiable proof of a job and steady income?
How much does the mortgage seeker have in debt compared to their income? Was the home they want to purchase appraised accurately?
There are many factors, both in and out of the mortgage seeker’s control, that must be looked into to ensure that the mortgage is fair for everyone involved.
Loan Underwriters
Though a mortgage is the most common sort of loan underwriting, other loans also need a party looking through the details to ensure it isn’t too risky for anyone.
As previously mentioned, they generally used underwriters and underwriting software when determining the risk of giving someone an auto loan.
Banks will often use underwriters as well when determining the risk in giving out a loan.
This goes for both big and small banks alike; with large banks, underwriters may be needed not just for loans given out to individuals, but much larger commercial loans given to businesses.
Depending on the size of the business, it’s possible they’ll be requesting a loan large enough that part of the loan underwriter’s job is to work with multiple banks.
Insurance Underwriters
Insurance underwriters are another particularly common group, looking into how risky the party seeking this insurance policy is.
Should you be looking into car insurance, health insurance, life insurance, or property and casualty insurance policy, the underwriter in your case has specialised knowledge in their respective field to work with you and the insurance company.
As opposed to merely determining if your risk levels are acceptable for paying off a loan, the information in the insurance underwriter will help determine, should you qualify for a policy, the kind you would be entitled to, and what it will cover.
Securities Underwriters
A different form of underwriter from all of these is securities underwriters, who work frequently with initial public offerings (IPOs).
They will assess the investment’s riskiness to help determine the appropriate price for an IPO, buy securities, and then sell them.
Often, the underwriter for securities is the investment bank and the specialists they employ.
One of the bigger risks here is that should there not be as much fanfare for these securities, the investment bank may be stuck owning more of them than they expected.
Job Description of an Underwriter
Underwriters work primarily in banks that handle loans and mortgages and are responsible for analyzing the risks of a loan based on the data in the application.
They also oversee other information in the loan application to ensure it is accurate.
Loans are the primary source of income for a bank, and ensuring the quality of loans is of the utmost importance.
Underwriters must follow all regulations, from the guidelines of the company and external underwriters to federal regulations for the approval process.
They must have strong communication skills to work well with applicants, as well as management skills to ensure that loans are of high quality and helpful for both sides.
The ability to learn quickly is highly beneficial as technology is constantly changing.
Underwriters work primarily inside offices for eight-hour shifts from the bank’s opening to closing.
Specific training is necessary to follow federal regulations and understand all credit and loan files, and most companies require this training before applying or will offer it on the job.
More Details on Underwriter
Knowledge of FNMA and FHMLC programs and guidelines is also required for the position.
1. Analyze new and renewal business, data, claim history, loss experience, and outcome of liability decisions.
2. Underwrite, submit, approve or pend coverage amounts and premiums, and present decisions to management.
3. Monitor existing policies for compliance with company guidelines.
4. Manage underwriting territory and select a new business based on analysis of their profitability.
5. Perform data evaluation on information retrieved from hard money loan applications.
6. Consult with Loan Officers following meetings with potential clients.
7. Investigate real estate properties in question and make an assessment of investment ROI.
8. Research project costs for remodelling and renovating properties listed on loan applications.
9. Conduct risk assessments on potential clients based on previous borrowing history, credit rating, industry experience, and other factors.
10. Request additional information from Loan Officers when appropriate.
11. Render application decisions based on consultations with a supervisory underwriter and upper management.
12. Prepare reports detailing risk assessment findings and other data that contribute to lending decisions.
Job Requirements for an Underwriter
Survey results imply Underwriters deploy a deep pool of skills on the job.
Most notably, facilities with Financial Modelling, Commercial Loans, and Underwriting are correlated to pay that is significantly above average, leading to increases of 68 percent, 30 percent, and 15 percent, respectively.
Skills that are correlated to lower pay include Customer Service, Data Analysis, and Microsoft Excel. Those familiar with Insurance also know Data Analysis.
1. High school diploma/GED required (College degree preferred)
2. Current underwriter certification
3. Excellent typing and 10-key skills
4. Superior organizational and time management skills
5. Experience with real estate transactions and evaluations
6. Knowledge of regulatory issues in both underwriting/finance and real estate
FAQs about Underwriter Job Description
Below are FAQs about Underwriter Job Description. Please, kindly examine the answers.
1. What are the responsibilities of an underwriter?
insurance Underwriter Duties & Responsibilities
1. Analyze applicants’ data.
2. Assess applicants’ risk.
3. Operate underwriting software.
4. Evaluate software-based recommendations.
5. Research applicants as necessary.
6. Decide whether or not to offer insurance.
7. Determine coverage and premiums.
2. What skills do you need to be an underwriter?
A good underwriter is also detail-oriented and has excellent skills in math, communication, problem-solving, and decision-making.
Although a university degree isn’t a requirement across the board, some employers may hire you if you have relevant work experience and computer proficiency.
3. What does an underwriter do daily?
Underwriter duties and responsibilities
Collect, review and analyze an applicant’s relevant history and records. Get additional information about an applicant to determine coverage needs.
However, Determine the level of risk for insuring or lending. Offer recommendations on whether or not to approve an application.
Still on the FAQs Underwriter Job Description
4. Do underwriters travel?
Underwriters work indoors in offices. Although underwriters spend most of their time working alone on applications at a computer, they sometimes must handle customer inquiries.
Some property and casualty underwriters may travel to assess properties in person.
5. Is underwriting a stressful job?
Insurance underwriters – the only other industry career considered in the report – outperformed agents, achieving a ranking of 78 and an overall score of 364.
Also, Work environment for underwriters was scored 46.4, while stress levels scored 16.87
6. Can underwriters work from home?
As a remote underwriter, you work from home to review loan applications with the goal of helping a lender decide whether they should offer a borrower financial support through insurance, a mortgage, or other loan options.
7. Do underwriters make good money?
Currently, the national mean salary for insurance underwriters is $76,880, which is noticeably higher than the U.S. average salary for all occupations, $51,960.
But the salaries for insurance underwriters vary depending on where you work, so find out which states pay the most and which pay the least.
More FAQs Underwriter Job Description
8. Are underwriters happy?
Underwriters are one of the least happy careers in the United States. At CareerExplorer, we conduct an ongoing survey with millions of people and ask them how satisfied they are with their careers.
Underwriters rate their career happiness 2.5 out of 5 stars which puts them in the bottom 5% of careers.
9. Do underwriters work long hours?
Underwriting is typically a desk job with a standard 40-hour workweek, although overtime may be required as determined by each underwriting project.
Evening and weekend hours are not uncommon. Working with computers and technology is a vital part of underwriting.
10. Is underwriting dying?
They listed insurance underwriter as one of the “10 most endangered jobs in 2015,” according to Forbes.
citing data from the BLS that forecasts employment in the role is expected to fall by 6 percent between 2012 and 2022. Also, from 106,300 insurance underwriters in 2012 to fewer than 99,800 in 2022.
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