How to Become a Government Underwriter
Whether it is for your health or car repairs, insurance protects people and businesses from financial losses. One important career in the insurance industry is underwriting. Underwriters review, approve or deny applications, and calculate the premium for insurance policies. Some insurance companies are privately-held and issue policies under their own companies. Government underwriters issue policies covered by the Federal Housing Administration (FHA) and primarily deal with consumers looking to purchase property. The FHA requires government underwriters to review, analyze and underwrite loans according to both lender and FHA credit quality standards.
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Instructions
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Obtain a bachelor's degree at an accredited university or college. Major in subjects such as business administration to develop a broad understanding of the commercial sector, finance and economics. Consider specializing in areas such as insurance and risk management to gain exposure to the insurance industry. Take courses in areas including value analysis, risk management theory and application, business ethics and insurance operations.
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Apply for a junior underwriter or underwriting trainee position at a mortgage lender or bank. Review loan documentation, conduct government research, and work with third-party vendors. Learn how to operate automated underwriting systems and client databases. Collaborate with loan officers, loan processors and senior underwriters to build oral communication, client relations and interpersonal skills.
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Begin the application process for Direct Endorsement (DE) underwriter designation through the FDA. Ask your employer for nomination to the DE registry, which provides you with authority to review and approve loans in compliance with FHA requirements. Make sure that your employer registers you through the FHA’s Underwriter Registry.
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Obtain designation as a Servicer’s Staff Appraisal Review (SAR) under the Department of Veteran Affairs. Request SAR nomination through your employer. Include your mortgage underwriting experience and DE designation in your application. Consider applying for additional professional certifications such as Accredited Residential Underwriter (ARU) designation. Add these certifications to your resume to increase your chance for promotion to positions with greater salary potential and career growth.
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Tips & Warnings
There are no formal educational requirements for insurance underwriters according to the Bureau of Labor Statistics. However, the BLS recommends that aspiring professionals obtain at least a four-year degree to be competitive in the job market. Employers also increasingly seek candidates with college education in business administration or a related discipline.
Keep in mind that your application must be verified against the Credit Alert Interactive Voice Response (CAIVRS) system and added to the Computerized Home Underwriter Management System (CHUMS) before you are officially approved by the FHA. After your application is deemed complete, you will be given a CHUMS identification number. Your CHUMS number is valid throughout your career as a government underwriter.
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