Becoming an FHA underwriter requires experience, sponsorship, and training in FHA policies. Training is available online, but employers are responsible for naming underwriters. A good relationship with the employer and solid job performance are important for becoming an FHA underwriter.
The path to becoming an FHA underwriter is not clear. Achieving this position can be a bit difficult despite the growing popularity and demand for US Federal Housing Administration (FHA) loans. While training is essential, so is experience and the ability to gain sponsorship or a recommendation from an employer.
Experienced mortgage professionals are more likely to become an FHA underwriter. Currently, the ideal situation is to be employed with a reputable contractor or mortgage service company and have at least three years of related experience. Federal Housing Administration standards require that this experience be recent and full-time. Those looking to become an FHA underwriter must also have first-hand experience with reviewing consumer credit reports and property appraisals.
Loan underwriters without specific knowledge related to FHA mortgages need to undergo training classes. Because FHA mortgages are approved under a different set of borrower qualifications and have special provisions, training exists to familiarize underwriters with FHA policies. Completion of training does not guarantee that an individual will become an FHA underwriter. It simply means that he or she is certified as having the necessary knowledge to do so.
Training is available at schools that specialize in mortgage underwriting. Many of the courses are taught in an online self-study format. Courses cover principles related to loan origination, the closing process, FHA compliance policies, and loan processing. The FHA also maintains a list of education providers that interested individuals may wish to consult prior to selection.
It is important to note that the Federal Housing Administration does not yet have an official approval process. Employers or prospective employers are responsible for naming FHA underwriters. Ultimately, it is the employer’s responsibility to ensure that any employee who wishes to become an FHA underwriter meets the required qualifications. A named underwriter must be employed full-time with the lender making the recommendation.
If an individual really wants to pursue a career as an FHA underwriter, it is vital that a good relationship is first established with the employer. It may be necessary to prove yourself by exhibiting solid job performance in a conventional underwriting role. Once you have obtained FHA training, it is up to you to demonstrate that you are familiar enough with the knowledge to perform it properly. If an employer does not believe an employee is capable of handling the duties associated with being an FHA underwriter, a nomination cannot be submitted.
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