Mortgage underwriters play a vital role in the mortgage process, assessing the risks involved and determining whether to approve or reject loan applications. Finding the right mortgage underwriter can make a significant difference in the speed and accuracy of mortgage processing. With the demand for qualified underwriters on the rise, it’s crucial to know what to look for during the recruitment process.
Here’s how you can hire the best mortgage underwriters for your team:
1. Look for relevant qualifications
Mortgage underwriting is a technical role that requires a deep understanding of lending guidelines and regulations. When recruiting underwriters, ensure they have the necessary qualifications to handle the responsibilities effectively.
- Key qualifications: Certifications like CeMAP (Certificate in Mortgage Advice and Practice) or other mortgage-related accreditations show that candidates are well-versed in the industry.
- Experience: Look for candidates with a solid background in financial services, ideally with prior experience in mortgage underwriting or related roles such as loan officers or credit analysts.
2. Strong analytical and risk assessment skills
A mortgage underwriter’s primary responsibility is to assess the risk of a loan, so candidates must possess strong analytical and risk assessment skills. They should be able to evaluate a borrower’s financial history, credit score, and other key factors to make informed decisions.
- Analytical skills: Candidates should be comfortable working with financial statements, tax returns, credit reports, and bank statements to assess a borrower’s creditworthiness.
- Attention to detail: Mortgage underwriting involves reviewing extensive documentation, and missing a crucial detail can lead to errors. Look for individuals who demonstrate high attention to detail and accuracy.
3. Knowledge of regulatory requirements
The mortgage industry is highly regulated, and underwriters need to stay up to date with the latest regulations to ensure compliance. Non-compliance can lead to legal consequences and financial penalties, so it’s essential that your underwriters are well-informed.
- Regulatory knowledge: Candidates should be knowledgeable about the Financial Conduct Authority (FCA) guidelines and Anti-Money Laundering (AML) regulations. Understanding how to comply with mortgage industry laws is critical.
- Continued learning: Given the changing nature of mortgage regulations, it’s important to hire underwriters who demonstrate a commitment to continuous learning and staying current with legal updates.
4. Strong communication skills
Mortgage underwriters need to communicate their decisions clearly to loan officers, mortgage brokers, and sometimes directly with clients. Being able to explain why a loan was approved or rejected is an important part of the role.
- Internal communication: Underwriters often work closely with other departments, such as loan officers and risk managers, so they need to effectively communicate their findings and decisions.
- Client-facing skills: In some cases, underwriters may need to explain their decisions to clients. Candidates should have the ability to explain complex financial concepts in simple terms, ensuring clarity and transparency in their communications.
5. Decision-making and problem-solving skills
Mortgage underwriters often need to make quick, yet informed, decisions. In cases where an applicant’s profile isn’t clear-cut, underwriters should be able to evaluate alternatives, weigh the risks, and make sound decisions.
- Decision-making: Strong decision-making skills are crucial in evaluating loans quickly and effectively. Look for candidates who can demonstrate previous experience in high-pressure decision-making scenarios.
- Problem-solving: Not all mortgage applications are straightforward. The ability to think critically and solve complex financial problems will set a top-performing underwriter apart from others.
6. Proficiency with underwriting software
In today’s digital age, mortgage underwriters need to be proficient in using underwriting software and technology. This includes automated underwriting systems (AUS) and loan origination software (LOS), which are used to streamline the process.
- Software proficiency: Candidates should have experience using software such as Encompass, Calyx, or other underwriting platforms. Ask about their familiarity with these tools during the interview process.
- Tech-savvy mindset: Beyond specific software, it’s beneficial to hire candidates who are comfortable with new technologies and can adapt to future changes in the mortgage industry.
7. Ability to manage multiple cases efficiently
Mortgage underwriters often handle multiple cases simultaneously, especially in busy markets. It’s important to find candidates who can manage their workload effectively without compromising on accuracy.
- Time management: Look for candidates with strong organisational skills who can prioritise tasks and meet deadlines while maintaining the quality of their work.
- Workload capacity: During interviews, ask how candidates have managed large volumes of work in past roles and how they maintain accuracy under pressure.
Conclusion
Hiring the right mortgage underwriters is crucial to maintaining a smooth and compliant mortgage process. By focusing on qualifications, analytical skills, regulatory knowledge, and decision-making abilities, you can ensure that your team is equipped to handle the complexities of mortgage underwriting. Don’t forget to assess their communication skills, software proficiency, and ability to manage multiple cases at once to ensure they fit seamlessly into your organisation.
