Underwriters are knowledgeable, experienced and expensive professionals. They begin their careers as loan officers and processers of mortgage loans. Climbing the ladder up to the rank of an underwriter takes a lot of effort, patience and determination. When it comes to recruiting and employing this professional, small mortgage companies face some challenges. Since an underwriter is a rare professional, an upcoming entrepreneur may only afford to employ one or two underwriters at a time. It is no wonder that companies are using mortgage underwriting services to lower their cost of operations nowadays.
What this simply means is that companies are looking for third parties who specialize in offering mortgage underwriting services. These external organizations have strong financial bases that permit them to employ a big number of underwriting experts. When an upcoming entrepreneur outsources work to these companies, he or she is able to hire a large team of underwriters without necessarily employing it. Even though outsourcing is the way to go, you have to know that an underwriter is your company's last line of defense. He or she must be in a position to bring quality control for your lenders and loan applicants.
The provider of your mortgage underwriting services must work in the following manner. First, they must act as a buffer between your loan processing team and the lenders. Remember that since your small company gets different home loan applicants, there are different types of lenders to deal with. Lenders have varied requirements and principles that must be followed during the underwriting process. Your role is to ensure that the external service provider can work in the best interests of your company, its customers and lenders. Demonstration of proper work ethics and competency is very important. The giver of your mortgage underwriting services must demonstrate their expertise and knowledge of handling different borrowers' cases.
Some borrowers often have complicated borrowing circumstances such as poor credit scores because of credit card debts, foreclosures, bankruptcy, divorce and other problems. A good underwriter must help your organization decide if such borrowers deserve a house loan or not. They must gather more information to supplement the documentation that is already contained in a borrower's file. Providers of mortgage underwriting services must also be in a position to use the modern tools of verifying the truth in the borrowers' documents so as to determine if they have what it takes to payback a home loan. Today there are software applications that are manipulated in a given manner to compute the total mortgage amount, do risk analysis and verify loan applications.
A reliable vendor of mortgage underwriting services must verify the creditworthiness of a loan applicant manually and with software. To do this, past credit history reports and current credit score reports are required. In addition, sources of income and the house loan down payment must be evaluated. The goal is to determine a borrower's debt to income ratio or the so called DTI. Sometimes underwriters do not disqualify a borrower. They simply advice him or her to choose a different home loan option that seems to go well with their DTI. As you can see, the role of underwriters to any company is very comprehensive and tricky. When searching for mortgage underwriting services, you have to keep this in mind.
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Mortgage Loan Processors helps mortgage brokers and bankers cut costs. There are many Outsourced mortgage loan processing services that cater to Mortgage Brokers and Lenders nationwide with a structured process to ensure success.
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