Mortgage Underwriter

The majority of supervisors deal with the three C's of supervisor activity - loan reputations, capacities and securities - and are better prepared to assess the probability that an originator will meet its commitments by analyzing things such as past conduct. It can then decide whether to grant an authorisation.

However, how exactly does a mortgage insurer analyse the degree of exposure of an investor? Both the first and most apparent way an underwriter assesses the risks is through the information readily provided in the mortgage proposal itself. Of particular interest are the applicant's legal years, his/her job history and earnings, the amount of credit he/she applies for and the number of breadwinners in a home.

This information will enable an underwriter to get an impression of whether an investor can reasonably expect to be able to pay for the mortgage he has requested. Furthermore, job applications can often trigger certain warnings, such as a recent change to self-employment or significant changes in life style ahead of time.

Rating is one of the most important tool available to those working in mortgage insurance business, so that loan information can be compared with claim information collected during the claim process and provides the insurer with a fundamental picture of an applicant's attitudes to creditworthiness. Obviously, most important of all, solvency checks also identify any prior issues a bidder has had with other lenders, such as past foreclosures, judgments or bankruptcies. What's more, they also identify any past events.

In fact, bad creditworthiness alone can be a good enough reason for an underwriter to reject a mortgage request because it poorly mirrors the "character". After all, account statement checks are often carried out by an underwriter to verify the applicability of entitlements made in the early phases of an claim, as well as those relating to incomes and expenditure patterns.

"Samantha Cordon of MortgageSolutions.co.uk warned that common games of chance indicate a shortage of self-control. "We' ve seen how creditors refuse candidates for periodic positions on their account statement, such as William Hill," added Mark Harris of mortgage brokers SPF Retail Client. If you look at the account statement, you give an underwriter an insight into an applicant's transaction history and can uncover other behavior.

The analysis of account statement also allows an underwriter to get a clear and precise picture of whether an investor can make mortgage payment in addition to other expenses on a month to month basis.