The underwriter/loan processor is responsible for reviewing loan applications, collecting necessary documentation, verifying information, and ultimately deciding whether to approve or deny a loan based on established lending guidelines, with the underwriter making the final decision on approval while the loan processor gathers and organizes the applicant's financial information to present to the underwriter for evaluation; essentially, the processor prepares the loan file for the underwriter to analyze and make a decision on creditworthiness.
Key responsibilities of an underwriter/loan processor may include:
Loan Processor Duties:
Gathering all required loan application documents from borrowers, including income verification, employment details, bank statements, and credit reports.
Verifying accuracy of information provided on the loan application.
Ordering appraisals and title searches.
Organizing loan documents into a comprehensive file for review by the underwriter.
Communicating with borrowers to request additional documentation or clarify information.
Underwriter Duties:
Performing a detailed analysis of the borrower's credit history, debt-to-income ratio, and overall financial situation.
Assessing the risk associated with lending to a particular borrower based on established underwriting guidelines.
Deciding whether to approve or deny a loan application.
Setting loan terms and conditions based on the borrower's creditworthiness.
Documenting the rationale behind loan approval or denial.
Skills and qualifications for an underwriter/loan processor:
Strong analytical skills to evaluate financial data and assess credit risk
Excellent attention to detail to ensure accuracy of loan documents
Understanding of lending guidelines and regulations
Effective communication skills to interact with borrowers, loan officers, and other stakeholders
Proficiency in loan origination systems and relevant software