Bank Underwriter Job Description
Banks offer many different types of loans to customers, such as mortgages, home equity loans, credit cards, credit lines, debt consolidation, automobile and small business loans. Bank underwriters are the professionals who determine whether to grant a loan to a customer.
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Function
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Bank underwriters use a computer system to evaluate the creditworthiness of applicants using information like their income, credit score and history, and employment record. Underwriters also examine any collateral being offered for the loan, such as a home or car, to determine if the collateral is worth enough to cover the amount of the loan.
Features
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The computer system that is used by the underwriters assigns a score to applicants, and those who score lower than a certain number are typically denied loans. Some banks give underwriters the ability to over-ride the decision, but in such cases, underwriters are held accountable if the bank suffers a loss.
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Skills
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Successful bank underwriters possess analytical and decision-making skills and the ability to communicate effectively with the loan officers who put in applications. Knowledge of how to interpret credit reports, appraisals, tax documents and financial reports is also required.
Education
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The minimum education required for work as a bank underwriter is typically a bachelor's degree in a field like business or finance. Employers also prefer applicants who have experience with lending, such as former loan officers or loan paperwork processors.
Compensation
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As of January 2010, bank underwriters averaged annual salaries of $49,000, according to Indeed.com.
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References
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